As often happens, in a single day many of the doubts about the valuations expressed by the financial market seem to materialize, driven by the super accommodative attitudes of the central banks, despite the heavy repercussions from the pandemic: from the lows of March, the S & P500 recorded a gain of 60 per one hundred. Honestly, Tactical Alpha’s Alec Young comments to Bloomberg, “the greater the correction in the tech sector, the healthier it is for the entire market. Valuations were too tight.”
Milano thus closes the session down by 1.54%, after having spent a morning in a convinced rise. At Piazza Affari the board of directors of Atlantia is registered, the holding company of the Benetton family that controls Autostrade per l’Italia: green light for the creation of the newco to spin off Aspi and bring in the CDP. Also noteworthy is the ECB’s go-ahead to Bper to take over excess branches from Intesa Sanpaolo after integration with Ubi Banca: 532 branches and related customers. In evidence Mediaset after the EU Court of Justice she proved Vivendi right by judging the Gasparri law on the basis of which Agcom imposed her to drop below 10% of the Biscione as illegitimate. The other stock exchanges of the Old Continent also show a weakening after having touched + 2% in the morning: Frankfurt at the end marks a deficit of 1.42%, London 1.48% while the only Paris is likely to hold its own (-0.4%) after the new economic support plans.
The Stock Exchange of Tokyo closed the session higher this morning: the Nikkei 225 ended the day with a gain of 0.94% to 23,465 points, while the broader Topix advanced 0.48% to 1631 points.
The final tension also reverberated on government bonds: closing up for the spread between ten-year BTPs and German Bund counterparts. The differential stood at 153 points. The yield on Italian securities rises to 1.06%.
On the foreign exchange market, theeuro it has recovered from the lows of the day below the threshold of 1.18 dollars, but remains far from the top of 1.2012 marked two days since. The single currency changes hands at 1.1813 dollars (1.1861 closing yesterday). One euro is also worth 125.39 yen (126.00), while the dollar-yen ratio is at 106.15 (106.16). According to Unicredit analysts, the words of the chief economist of the ECB, Philip Lane, according to which the exchange “counts” to determine the macroeconomic estimates, have given the opportunity for some profit taking but the underlying trend is always one of strengthening of the single uniform. From Ft furthermore, the concerns of the ECB board about the possible impact on inflation estimates rebound.
Better than expected data on the labor market are arriving from the US: in fact, requests for new unemployment benefits fall and return to below one million. There were 881,000 applications against 1,006 million of the previous week (-130,000). The figure is better than the expectations of analysts who expected 1 million.
Negative signals are coming from the SME services indicators. The index constructed by interviewing the purchasing managers of the companies marks a decline in Italy to 47.1 points in August, below the threshold of 50 that separates the contraction from the economic expansion. Also in Germany there is a deterioration, but still in positive ground at 52.6 points, while in France the contraction brings the SMEs into the relegation zone with 49.8 points. Same level for the Eurozone complex indicator. In July 2020, the month of easing of the containment measures linked to Covid-19, the volume of retail trade sales decreased by 1.3% in the Eurozone and by 0.8% in the EU-27, compared to previous month, according to Eurostat estimates.
“Right now, the focus should be on economic recovery. Once the recovery is firmly in place, instead of simply returning to business as usual, governments should seize the opportunity to build a greener, more inclusive economy. and more resilient “, commented Pascal Saint-Amans, Director of the Center OECD for fiscal policy, presenting the Tax Reforms 2020 report, which analyzes the policies implemented by the various countries to tackle the impact of the coronavirus. “One path that should be seen as an urgent priority is the reform of environmental taxation and fiscal policies that address inequalities.”
Finally, among the raw materials Petroleum down in New York, where prices lost 1.90% to 40.72 dollars a barrel.