(Il Sole 24 Ore Radiocor) – European markets rebound after the sell-off from the previous session, when the global rally came to an abrupt halt, with concerns about the possible slowdown of the recovery, rising bond yields and the energy shock, and with central banks they predict a normalization of monetary policies. In addition, the crisis of the real estate giant Evergrande continues to cause concern. That said, there are signs of stabilization in the markets, with the oil falls after the unexpected increase in US inventories, while the dollar slows down with the euro slightly moved to 1.1681 on the greenback. Thus the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 40 in Frankfurt, the Ftse 100 in London, the AEX in Amsterdam and the IBEX 35 in Madrid are all up.
In Milan eyes on Generali, oil stocks weak
The banking sector needs to be monitored in Piazza Affari, with the game on Generali becoming more and more intense. The Benettons have announced the exit from the consultation agreement between Mediobanca shareholders, to maintain “neutrality” on the shareholdings held. In the meantime, Delfin’s Del Vecchio has proposed to integrate the agenda of the assembly of 28 October to propose changes to the statute. Oil stocks fall back, with Saipem, Tenaris and Eni all falling. Banca Pop Er was also weak, which had moved against the trend on the eve. At the top of the Amplifon and Interpump Group list, pharmaceuticals also recover.
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Evergrande flies after asset sale, but Fitch cuts credit rating
The Chinese real estate giant Evergrande, at risk of default due to the huge amount of accumulated debt, raises funds by selling assets for about 1.5 billion dollars, which is causing the company’s stock to fly to the Hong Kong Stock Exchange (+ 12% to 2.99 Hong Kong dollars). Specifically, the Evergrande Board decided to sell a 19.93% stake (approximately 1.753 billion shares) in the Shengjing Bank regional bank for 5.70 yuan each, for a total of approximately 9.99 billion yuan. Shenyang Shengjing Finance Investment Group will buy. After the sale of the stake, Evergrande will still hold a stake in the bank equal to 14.57%.
However, Fitch Ratings has cut the rating of the Chinese real estate giant Evergrande from “CC” to “C”, one step above the default level, with a recovery rating “RR6”, citing the probability that the group has not met the initial deadline for the payment of interest on a dollar bond.
Focus on oil prices
The unexpected increase in US inventories triggered realizations, with Brent back below $ 80 a barrel at 77.76 (-1.68%) and WTI at 73.96 (-1.77%). The focus is also on oil and gas prices, which keep the world economy in check. The first sessions of the week, in fact, were dominated by the energy crisis, due to the rise in the prices of crude oil, methane and other resources. Brent in London exceeded $ 80 a barrel, a peak last reached 3 years ago and the penultimate time in 2014. The rise in energy prices in China causes production to decline in some sectors, for example in the technology.
Spread down to 104 points
Positive trend for the prices of government bonds traded on the MTS electronic secondary market with the spread which consequently ‘closes’ slightly compared to the final on Tuesday. The yield differential between the benchmark ten-year BTp (IT0005436693) and the same German maturity is indicated at 104 basis points (105 basis points the previous closing against 101 points on Monday evening). The Italian 10-year yield drops to 0.84% at the start from 0.86% at the end of the day before (0.8% the Italian 10-year yield on Monday evening).