“The trend in today’s markets was predictable. After the race the past few days awaiting the decision of the Fed, it was natural that traders take profit. Investors now expect a certain anxiety of the move ECB, “says Carlo Galli chief trader at Deutsche Bank. “It ‘important that the central bank cut the cost of money to give as a bit’ oxygen economy.”
The chairman of Telecom Italy, Marco Tronchetti Provera, presented the list of candidates for the new board of the company will increase from 13 to 15 members. The candidates proposed by Olivetti were Gilberto Benetton, Enrico Bondi, Carlo Buora, Luigi Fausti, Paolo Maria Grandi, Natalino Irti, Gianni Mion, Massimo Moratti, Carlo Alessandro Puri Negri and Pier Francesco Saviotti, in addition to the same Marco Tronchetti Provera, the Ministry of ‘economy has been indicated the name of Umberto Colombo, while the minority shareholders represented by investment funds in the capital of Telecom have made the nominations of Francis Denozza Guido Ferrarini and Jeffrey Livingston.
The foreign exchange market appears to reward the single European currency, which currently has 0.88 shares gained against the dollar, and more specifically to exchange 0.88185 against the U.S. greenback. To encourage professionals to leave the foreign exchange market the dollar and take refuge in the euro seems to be uncertainty about the prospects of the U.S. economy, especially given that the words just reassuring the Fed chairman Alan Greenspan.
Piazza Affari in expectation of the Fed meeting would suffice to define the phrase sitting in Milan, after having sailed in sight for the whole day has gone on top in the final stage, confident in cut in U.S. interest rates. The Mibtel index closed thus increase of 0.40%, close to the maximum of the day. Excellent starting point for the real estate sector, which jumped ahead thanks to good prospects for 2001. But to pull the market were the giants of the old economy as Eni, Finmeccanica and STM. Positive outcome for Seat, after the decision of the TAR of Lazio who has blocked a decision on the merger with TMC and has upheld the appeal of Telecom. Clear skies finally the new market which has shown once again the muscles. Fell instead SanPaolo, dropped by about 4%, Edison, Italgas and Bipop, hit by profit taking after rising yesterday.
FTSE falling to -1.61%. The index of London has reached the 6081 points this morning, one of the lowest levels since October. The data published today on the progress of inflation in Britain were better than expected by analysts, partly reassuring the fears of those who see the British economy grow too rapidly. Despite this, state actors, it is increasingly clear to the market that interest rates will be raised again in the future. Lehman Brothers provides for an end of the year an increase of around 7%.
Analysts and fund managers are in agreement that the correction will last a little longer ‘, but the long-term trend is positive. “I do not think European stock markets will be overwhelmed by a collapse,” said Fabrizia Bottiroli, manager of Credit Suisse Asset Management, “The stock market reaction to this first correction was excessive. The feature, however, is comforting that trade in those days were not very high. The bad thing however is that there is less and less correlation between European stock exchanges and the Nasdaq price U.S. technology, as evidenced by the meeting today. Addition, the U.S. Federal Reserve has already raised interest rates and the next meeting will be May 15, until then there should be no news. The panic is not justified. “It could open up a short-term good for the markets,” continued the manager, “The correction on some titles, grew much was needed and now may start to rise. At these levels some actions have come back to being interesting, this correction could then be an opportunity to buy. The important thing is that reduce volatility and uncertainty. Every day we see in fact, a transition from old to new economy and vice versa, without which the market took a definitive way. As regards the areas we are still positive on average, though less than before, and we introduced the titles of some of the old economy companies, such as banking, preferably in the most dynamic industrial and cyclical. In particular we have in the portfolio Pirelli, Autogrill, Italcementi, Saipem and we think you include Benetton. As to Enel are not overweight but the idea of accumulating since the rediscovery of the shares in Wind and hence the potential in telecoms “.
black day for Paris, the CAC40 who loses 3.17% to 6065.71 points. After a week full of prudence, influenced by difficulties in the Nasdaq today, the Paris market and sold securities plunged dragged tecnologici.La media and prudence of the past days has turned into a race to sell the securities of the new economy with Vivendi Most Active Stocks of the day (-4.92%). Close in negative Canal + (-8.72%), Cap Gemini (-9.13%), France Telecom (-6.02%), the disastrous performance of TF1 which marks -14.42%. On the upside closed Valeo (+1.33%), Saint Gobain (+0.42%) and +2.27% with LaFarge.
Piazza Affari is touching the smallest of the day after in America came the inflation data. Mibtel marks a decline of 1, 48%, while the Mib30 1, 67%. A pull down the lists the titles of the Telecom phone, all negative except Tecnost. Mediaset, after a good start, fold over two percentage points as Mediolanum, Bipop and Banca Fideuram. Are not immune from violence either transfer the securities of the old economy as Fiat, Generali, Edison, Ras and Unicredito.
Finmatica suspended for excessive rise to 102 euros. The evolution of the title fits perfectly into today’s situation. As soon as the fever of the Internet seems exhausted and ready for a spin sectoral positive signals coming from overseas, which obtained their interest in the new economy. The immediate consequence is that they return to rain on buying technology stocks. Were in fact the latter has to suffer the greatest losses, and now that prices have returned interesting operators are seizing the opportunity buy new. Finmatica in the meantime there was still and began to look to the Nasdaq to study a possible listing that could bring new benefits to shares and shareholders.
Florence Airport continues to shine on his first day of trading. The title after scoring as the first price 9.30 euro, compared to 8.1 of the placement is currently trading at 9.50 euros. Ivano help, fund manager of the Bank of New Listings Naples, commenting on the debut said: “The price of 8.1 euro was worth on average higher than the fork, but it’s definitely interesting, and so a company has been confirmed. The value is mainly due to the fact that the group is geared to new national and international agreements. The company is looking for a partner, entered the stock market to have more credibility. And ‘a title defense of the old economy, but that certainly will not disappointments .