Dragons attack: euro down, BTP records. But the manufacturing disappoints – The Republic

MILAN – 11:00. New year, old life: Mario Draghi warms markets, but the economic situation of the old continent is not a bed of roses and prove we are the bad data on the manufacturing sector, Italy in the lead.

The Governor of the Central Bank has again triggered markets waiting for a quantitative easing , ie the massive purchase of securities also state, to combat the risk of deflation that at this point no longer be ruled out, although “it is limited “. He did talking to German Handelsblatt , choosing just the audience of the strongest opponents of its expansionary monetary policy. Only a few ho urs before the Dragons had been the chief economist Peter Praet, always speaking in Germany, remember how close the risk of seeing the prices in the Eurozone negative and therefore far the mandate of the ECB inflation close to 2% over the medium term.

“The risk not to fulfill our mandate about price stability is higher than was six months ago “ said especially Dragons the German newspaper . And then reiterated the detailed position at the end of the last Council Eurotower: “ We are preparing technically an amendment to the size, speed and composition of our measures in early 2015, if that becomes necessary, to react to too long a period of low inflation “, pointing out that there is unanimity within the Executive on this aspect. Change measures means that – in addition to the purchase of bonds and securitized loans (Abs) – you can also consider other instruments, just as government bonds, and also in larger quantities.

The reaction to these statements were not slow to manifest itself. L ‘ € , accelerating the weakening in recent days against the dollar and is down on the ticket sees lows from June 2010 to share 1.2035. The spread between BTP and the Bund area falls 125 points, with Italian ten-year bonds that mark a new low for the yield to 1.8%: the expectation that the ECB purchases flattens them requests for compensation of investors. The differential between the title and the German ten-year Spanish Bonos drops below 100 points at a rate 1.5% in area.

A spoil the party beginning of the year the stock exchanges thinks the real economy. Milan part in a gallop, then slows with data on manufacturing PMI. The FTSE MIB, unlike the other major indexes EU, is still rising (+ 0.5%) thanks to the driving of the banks benefiting from the drop in the spread. Among the most followed of the Italian list is then Finmeccanica, since just before the New Year’s Eve the AgustaWestland announced a maxi-order 160 helicopters for Russian Rosneft. It also signals the novelty of the compensation sull’ecotassa French Atlantia , which is brilliant. Good start also the year of Salini Impregilo: this time the compensation comes from the Panama Canal. In the rest of Europe lists run instead in red:

Frankfurt gives a percentage point, London 0.6% and Paris lost 0.8%.

To curb the enthusiasm related to Dragons then we thought the world of production. L ‘ Eurozone manufacturing PMI index , which measures the expectations of the industry through the views of companies, salt less flash estimate to 50.6 points in December. It is a level just above the threshold of 50 points, which divides economic expansion and contraction. Male ‘s Italy : according to the institute Markit index value tricolor (48.4 points) is the lowest in 19 months. Accelerates the contraction of output and employment, while for the first time in three months, the sales prices down. Even the F rance remains in negative territory, while the Germany shows a slight improvement. Unexpected setback for the UK .

Even in the US are expected data on manufacturing PMI and the ISM index is similar: in December are expected slightly lower than in November. Also be monitored the progress of construction expenditure in the last month of 2014, seen in advance by 0.4%. A Wall Street the last session of 2014 ended down but the annual budget was still positive: the Dow Jones rose by 7.5% in the last 12 months, the Nasdaq added a 13 , 4% and the S & amp; P 500 saw a + 11.4% with a + 24% of the utility, a + 23% at Health care and -10% of the energy.

Sitting low volume and a few ideas on Asian stock markets, orphan of the two major exchanges, the Japanese and Chinese. The open squares begin the year with some upside: Hong Kong advancing 0.77%, 0.57% and Seoul Sydney of 0.46%. Meanwhile, the continued slowdown in the Chinese economy. The manufacturing PMI in December found the institute Markit-HSBC fell to 49.6, then under the bar 50 that represents the divide between contraction and expansion. The previous estimate was 49.5. Lastly, with regard to raw materials, the ‘ Gold is rising in Asia to $ 1,188.46 an ounce marking an increase of 0.6%. Oil rose to $ 53.84 a barrel for WTI and $ 57.57 for Brent.

Arguments:

European shares

Asian stocks

Wall Street

bce

quantitative easing

deflation

spread

btp

bonds

euro

dollar

Starring:

mario dragons

Peter Praet