ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 23, 2019. See details below:
European shares drifted lower this morning, following the path traced by Asian markets where declines have been mostly driven by Hong-Kong and China while Tokyo was shut for a holiday. There is still a lot of uncertainty in the market despite “constructive” talks between the US and the Ministry of Commerce of the People’s Republic of China as any substantial progress before the official October meeting is extremely unlikely.
Another bearish driver for global stocks comes from Saudi Arabia, where some Aramco board members said it may take months, rather than weeks, to restore the company’s oil output after the drone attack. Technical experts told Saudi officials that it could take up to 8-months for production to return to pre-attack levels, which could support the current rally on crude and mechanically put further pressure on stocks.
In Europe, UK PM Boris Johnson doesn’t think a breakthrough on Brexit will happen during his meeting with Belgian PM Charles Michel in New York today but he said he was pleased with the optimistic tone talks have taken with EU officials, after they said there was space for negotiations on the backstop.
Pierre Veyret– Technical analyst, ActivTrades
Juventus share price has fallen this morning by as much as 8.5% (€1.27 per share) in the first few minutes of trading, following the news that the company will try to raise up to €300 million via a capital hike. Despite the dramatic start, the price consolidated around €1.30/1.31. The figures of last year are showing a loss close to €40 million. In the last 4 weeks the market capitalisation has fallen from €1.60 to €1.30 billion.
Nonetheless, the price remains well above the levels seen before Cristiano Ronaldo’s arrival, when the stock was traded at €0.60 per share, for a market cap of €600 million.
Some in the market had been expecting this piece of news and the price is somewhat supported by the fact that shareholder Exor, the holding of the Agnelli family, will participate to capital increase for its quota. This is reassuring small investors, while Juventus’ market cap remains 50% lower than that of Manchester United and well below that of Arsenal Holding PLC. From a technical point of view, the short and medium trend is bearish, with a long-term static support at €1.20, near the minimum of 2019. Meanwhile, the long-term trend still appears positive, with the share prices that was traded at €0.25 in middle 2016, and €0.60 in summer 2018.
Carlo Alberto De Casa – Chief analyst, ActivTrades