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Stock Markets – Closing Note - 22 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended the day in low. The rise of the Chinese stock exchanges and the first reaction of the bond market to the reduction of the rating of Italy gave an initial boost to the stock indices. The 4.50% rise in the Shanghai stock market enabled commodity producers and the auto industry to rank among the best performers. Fiat advanced 3% as a result of the news that it sold its hi-tech unit Magneti Marelli to a company owned by the private equity fund KKR for 6200 M. €. On Friday after closing, Moody's downgraded Italian debt from Baa2 to Baa3 with a stable outlook. This is the last degree of the investment category and indicates a moderate credit risk. In an early stage, the market reacted positively, with Italian yields and its spread declining against the Germans. However, in the second part of the session, Italian bonds lost all ground gained in the morning, spreading their weakness to other European assets. Despite the conciliatory tone of the letter sent by Finance Minister Giovanni Tria to the European Commission, the Italian Government reiterated that it will not change the State Budget already presented. The Earnings Season remains one of the main themes of the week. Ryanair posted a considerable gain, despite having reported a profit for the second fiscal quarter below expectations. The company also announced that it has made significant progress in preventing further strikes. On the contrary, Philips fell more than 6% after its quarterly results fell short of forecasts. Shares of the Day suffered heavy losses (-25%) on the day the company revealed that it reviewed the accounts for 2017 and accounted for minus 20 M. € in revenues.
American indices traded without a common trend. The Dow Jones and S & P were being penalized by the correction of the banking and oil sectors. Nasdaq was trading higher, benefiting from the appreciation of the shares of major technology companies. This week, Microsoft, Google, Amazon, among other companies will report their quarterly accounts.
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended the day in low. The rise of the Chinese stock exchanges and the first reaction of the bond market to the reduction of the rating of Italy gave an initial boost to the stock indices. The 4.50% rise in the Shanghai stock market enabled commodity producers and the auto industry to rank among the best performers. Fiat advanced 3% as a result of the news that it sold its hi-tech unit Magneti Marelli to a company owned by the private equity fund KKR for 6200 M. €. On Friday after closing, Moody's downgraded Italian debt from Baa2 to Baa3 with a stable outlook. This is the last degree of the investment category and indicates a moderate credit risk. In an early stage, the market reacted positively, with Italian yields and its spread declining against the Germans. However, in the second part of the session, Italian bonds lost all ground gained in the morning, spreading their weakness to other European assets. Despite the conciliatory tone of the letter sent by Finance Minister Giovanni Tria to the European Commission, the Italian Government reiterated that it will not change the State Budget already presented. The Earnings Season remains one of the main themes of the week. Ryanair posted a considerable gain, despite having reported a profit for the second fiscal quarter below expectations. The company also announced that it has made significant progress in preventing further strikes. On the contrary, Philips fell more than 6% after its quarterly results fell short of forecasts. Shares of the Day suffered heavy losses (-25%) on the day the company revealed that it reviewed the accounts for 2017 and accounted for minus 20 M. € in revenues.
American indices traded without a common trend. The Dow Jones and S & P were being penalized by the correction of the banking and oil sectors. Nasdaq was trading higher, benefiting from the appreciation of the shares of major technology companies. This week, Microsoft, Google, Amazon, among other companies will report their quarterly accounts.