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This article was published on 10 October 2014 at 07:32.
The last change is the 10 October 2014 at 23:12.
In the final session of Wall Street is back in negative territory held back by the bad performance of the technology sector: the Dow Jones lost 0.69% to 16,544.30 points, the Nasdaq yields 2.33% to 4276.24 points while the S & amp; leaves on the ground P 500 1.1% to 1906.6 points. In the background continue to weigh concerns about the global economy, with the slowdown in China and the risk of recession in Germany.
foiled the “threat” of Canada. Moody’s rating on Italy, see
About Italy DBRS confirmed the rating of “A-Low” and the outlook “negative”, while in the late evening Moody’s has said with a laconic note that the judgment on Italy (currently ‘Baa2′) is postponed to another date. The ratings are important: they serve the ECB to determine the rules on the collateral that banks have all’Eurotower to get money. The Canadian rating agency DBRS, in particular, was the most significant because it is the best among the four and that’s what keeps time “hanging” our country. A possible downgrade below the threshold “A” could mean more deductions (“haircut” in English) to the detriment of Italian banks who deliver BoT, BTP and the like to get money from the ECB.
European stocks weak
Another day of declines for European equity markets, in a session characterized by the expectation from the auction BoT and conditioning for the decisions of the agencies Moody’s and DBRS rating on the Canadian Italian (only a few minutes ago confirmed the rating). The FTSE Mib index closed down 0.94%, but the budget would have been even worse if Wall Street had not sketched an attempt to recover after a weak start. Worse went to Frankfurt (-2.12%), which is the lowest for a year. Minor tensions on the other hand, BTP, with the yield of ten-year 2.33% and the spread with Bunds to 144 basis points. The euro has weakened again to get back to $ 1.2630 (euro / dollar exchange and currency converter), while oil has sunk to the lowest level in four years below 90 dollars a barrel.
Demand is strong for treasuries
In such a context, the auction of the BoT has recorded annual increase in gross returns ( 0.301%) after the lows of September (0.271%), but also a strong demand with a coverage ratio increased to 1.7 from 1.64 the previous year. The good reception of investors for Italian securities, moreover, was to be put into account, since the amount of maturing bonds was higher than that emitted (€ 8 billion). Just as was expected a rise in yields, “The last board of the ECB – in fact explains Elia lettuce UniCredit – left a little ‘disappointed the market, after Draghi declined to comment on the extent of the expansion of the budget for’ Eurotower in more requests lower than expected by the banks operation Tltro of September they put pressure on the short end of the yield curve. “
Production in weak recovery
On the macroeconomic side, in August, the industrial production grew in Italy an increase of 0.3% compared to the previous month, but remains down 3.7% on an annual basis. During the same period, the production remained stable in France and fell by 0.7% in Finland. In the United States will instead counter the speeches of several members of the Fed (including Plosser, Lacker, Fisher and George), all the while continuing to Washington annual meetings of the IMF and World Bank and starts the meeting of finance ministers and central bank governors central banks of the G20. The real market-mover of the day (which will come, however, to European markets now closed) is represented by the pronouncements of the rating agencies on European countries: S & amp; P on Finland and France, Portugal on Fitch, DBRS of the Netherlands and Spain.
Fiat in decline the last day on the Milan Stock
Last day to drop in Piazza Affari for titles Fiat (-2, 12% to € 6.94), which after 111 years will no longer be treated with this name on the list Milan Sotra after a long 111 years. Italian Automobile Factory Turin leave the place from 13 October to Chrysler Fiat Automobiles (Fca) following the conclusion of the long process that led to the merger with the American company. The new group, which ranks seventh in the constructors’ championship world will be quoted in New York from 9.30 local (15.30 Italian) next Monday (Columbus Day) and soon after on the MTA of Borsa Italian, tracing what happened for the former Fiat Industrial, Industrial become CNH.
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