MILANO – 3:45 pm. European stock exchanges consolidate gains while Wall Street reopens to new records with Tesla as a great protagonist for the first time over one trillion capitalization.
In the Old Continent, Frankfurt salt by 1%, Milano adds 0.5%, Paris salt by 0.8% e London marks + 0.7%. At Piazza Affari, continue to hold the bank each other Mps. In particular, subordinated bonds rebounded, subject to heavy sales yesterday in the wake of fears of a possible involvement in burden sharing in the event of a state bailout. Securities recovered after reassurances leaked from the government about the commitment to seek a market solution for Siena, which could be entitled to a precautionary recapitalization. The four subordinated securities, with a total value of 1.75 billion euros, show increases of between 6.4% of the 300 million bond maturing in 2030 and 9.3% of the 750 million bond maturing in 2028.
Wall Street opens positive. The Dow Jones rises by 0.31% to 35,831.11 points, the Nasdaq advances by 0.61% to 15,321.64 points while the S&P 500 scores a progress of 0.35% to 4,582.45 points: new records . The quarterly reports continue to give their support to share prices: on the main New York list 81% of the companies gave accounts higher than expected. Even Facebook, at the center of numerous controversies for the detections of the former employee on the improper use of the social network, managed to move positively on the after-hours market after the disclosure of the accounts.
Sebastien Galy, strategist at Nordea, wrote in a note that “the stock markets are continuing their rise and we expect them to do so even after the publication of the Big Tech accounts” expected in these days. Today, for example, it will be the turn of Alphabet (Google), Twitter and Microsoft among others. The decisive appointment in the short term is the ECB meeting on Thursday, from which indications are expected on the end of the extraordinary purchase program of securities.
In the morning, Asian markets moved largely into positive territory: Tokyo closes up by 1.77%, Seoul rises by 0.94% while the slowdown in Chinese markets continues, still grappling with fears about the new outbreaks of Covid-19 recorded in the north of the country: Shanghai yields the final 0.34%, Hong Kong 0.7%. In China, after the Evergrande chaos, new problems are reported for real estate: Modern Land China, Report Bloomberg, is the latest builder that has not honored the coupon payment on a dollar bond, further demonstrating the financial stress under which the sector finds itself. For offshore bonds, Chinese default rates are now at a record high. “Constructive” is instead the adjective for the telephone conversations that have taken place between Chinese Deputy Prime Minister Liu He and US Treasury Secretary Janet Yellen on trade matters.
L’euro opens stable in the exchange rate against the dollar, at 1.160. The greenback is slightly improving against the yen to 113.93, while it does not change against the pound: it is currently trading at 1.375. The European macroeconomic front is exhausted. In the US it is reported that house prices in the 20 largest American cities in August rose by 19.7%. The figure is below the expectations of analysts, who bet on a 20% increase.
It spread between BTPs and German Bunds it drops to 107 points and the yield drops by 0.9 points to 0.954%. The Treasury has auctioned Short Term BTPs (seventh tranche maturing in January 2024) for the maximum pre-established amount of € 2.25 billion with rates slightly increasing to -0.23% from -0.29% of the placement of August. Thirty-year BTPs indexed to inflation (sixth tranche maturing May 2051) were also assigned for 750 million euros with a yield of -0.16%.
Among the raw materials, the prices of Petroleum little moves on the after hour market in New York where the reference WTI crude oil changes hands at 83.73 dollars a barrel like last night in closing after having exceeded, during the session, however, 85 dollars for the first time since 2014. Little Brent also moved and changed hands at 86.08 dollars a barrel. The prices of theoro after the rises on the eve that brought the bullion back above 1,800 dollars an ounce. This morning the precious metal changes hands at 1,806 dollars an ounce (-0.08%).
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