Banks on the rise, Amplifon crash with investigation into the sector
On the Ftse Mib, a sharp decline for Amplifon, with the stock widening its losses to the point of losing over 9 points: the Antitrust authority has launched an investigation into the hearing aid markets with particular attention to the issue of prices. The fact-finding investigation does not specifically concern the company, but the market as a whole. Positive trend for the banking sector after the government reached an agreement regarding the changes to be applied to the tax on banking extra profits. Among the best are Banca Pop Er, Banco Bpm and Banca Mps. Stellantis negative, the strike in the USA has spread to involve 20 spare parts distribution centers. Sales on Telecom Italia while the time to see the binding offer of the KKR fund on the network is getting longer. Anima Holding is also in the spotlight: according to press rumors, Crédit Agricole, through Amundi, is tempted to reopen the company’s dossier. New historic lows for Avio outside the Ftse Mib.
Gas on the rally, reaching highs since the end of August
Gas continues its run and exceeds 44 euros per megawatt hour, updating the highs since the end of August. On the Amsterdam TTF platform there was a growth of 11%. The performance is linked to uncertainties about the continuity of supplies in Norway which in recent periods have proceeded in fits and starts due to a series of maintenance activities in the factories.
Euro/dollar slips below 1.06, lows since March
On the currency market, the euro/dollar exchange rate also slipped below 1.06 for the first time since March. The relationship between the two currencies was already in decline since this morning, in the 1.0620 area, but it accelerated after the words of the president of the ECB Christine Lagarde according to which the current level of interest rates in the eurozone should allow to bring back the inflation towards the 2% target. The exchange rate reached a low of 1.05959. The single currency is also losing ground against other currencies and is trading at 157.70 yen and 0.8682 pounds. However, the weakness of the euro is accompanied by a new increase in the dollar (the dollar index is close to 106 points, the highest since November). “The feeling is that the dollar can continue its run, although approaching important resistance levels that will not be easy to violate” write the ActivTrades analysts, highlighting the importance of macro data as a factor that can further orient the trend of the greenback. For this week, personal expenses and income as well as the PCE index (Friday) are on the calendar on Friday. The latest reading of US GDP for the second quarter is expected on Thursday, falling again below 1.06, while the euro/yen slips below 158 and the Japanese currency is exchanged at 148.7 to the dollar. As for oil, the November future on the WTI falls below 90 dollars a barrel, while the similar Brent delivery drops to 93 dollars.
BTp, spread reaches 186 points, ten-year yield rises
Slight increase in the spread between BTp and Bund. The yield differential between the benchmark ten-year BTp (Isin IT0005518128) and the German bond of the same duration stands at 186 points, two more than at last Friday’s closing. The yield of the benchmark ten-year BTp rises again to 4.65%, from 4.58% of the reference last Friday.
Evergrande collapses in Hong Kong, slows down Chinese markets
Evergrande collapses on the Hong Kong stock exchange (-22%) after declaring in a file on the former British colony’s list that, in view of the investigation by Hengda Real Estate Group, its main domestic subsidiary, «it was not able to satisfy the requirements for issuing new bonds”. Evergrande’s unit had been investigated by China’s securities regulator for suspected information disclosure violations. As of the end of July, Hengda Real Estate’s unpaid debts were about 277.5 billion yuan ($38 billion), with 1,931 lawsuits pending. The Hong Kong stock exchange closed trading at -1.8%.