The dollar runs, gold collapses and the spread on the Italian secondary widens with the German 100-year bond, returning beyond the psychological threshold of 24 points. These are the effects of the Fed, almost 2023 hours after Jerome Powell's highly anticipated press conference, after a two-day monetary policy meeting. The change of tone, the bullish forecasts and the possibility of two interest rate interventions in XNUMX by the US central bank are still being felt today, while the fear of an earlier than expected tapering start is strengthening on the stocks and the banks, vigorous in the European morning, lose bite during the last exchanges.
At the end of the day, the continental lists close with mixed results. London it dropped 0,42%, under the weight of the decline in mining stocks, while the country continues to deal with the growth of Covid infections due to the Delta variant. Frankfurt + 0,09% Paris +0,21%; Amsterdam +0,19%; Madrid -0,1%. Milan is in the black jersey -0,21%, 25.713 points. To shopping on Ferrari + 1,92% Amplifon + 1,82% stm + 1,19% nexi +1,04%, offset by sales of utilities, industrials and oil. They file the session in red: Tenaris -2,24%; Saipem -1,88%; Prsymian -1,82%; Enel -1,63%. Banks deflate in the end - the best is Unicredit +0,27%. Perhaps the fact that today the finance ministers of the euro area threw a hole in the water on the banking union also weighs: apparently they will not be able to reach an agreement to "cement" the progress made in the negotiations or even to define “a phased work plan with deadlines on all outstanding items needed to complete the merge”. On an uncertain day, he debuts with fireworks Aton Green Storage on Aim Italy. The share of the group that operates in the market for the engineering and production of energy storage systems for photovoltaic plants is the best in the Stock Exchange, closing with a theoretical increase of 59,50%.
The government bond market stops in the red: lo spread between 10-year BTPs and Bunds of the same duration, it rises to 101 basis points (+3,31%) and the BTP rate grows to +0,77%.
In New York, after a cautious start, the Nasdaq is accelerating and gaining more than a percentage point, while the Dow Jones shed 0,56% and the S&P500 is flat. We note the collapse of the title curevac on Wall Street and in Frankfurt, after the German laboratory of the same name said its vaccine was only 47% effective.
Among the expected macroeconomic data, there is the surprising increase in weekly requests for unemployment benefits, which rose by 37.000 to 412.000, after the lows reached by the beginning of the pandemic in recent weeks. A sign in contrast to the recovery? Taking into account that work has become the North Star of the Fed, it would be fair to say that the mood has cooled slightly. In any case, the rate of T-Bonds is falling, after yesterday's rise and prices are rising.
Overall, the markets appear nervous. According to MPS Capital Services analysts, the Fed gave "a jolt, increasing expectations that the Institute could soon begin to remove the stimulus measures". And even if Governor Powell tried to dilute the signals that emerged, 'the message that reached the market from the meeting is of a Fed that is preparing the field for the removal of stimulus measures starting with Qe'. So much so that the same number one of the US central bank defined the meeting as "the beginning of the discussion on the tapering discussion". In summary, the Federal Reserve summit 'started the process of normalizing accommodative monetary policy, with the labor market element that is currently missing to accelerate this process'.
Meanwhile, in Europe, Eurostat confirmed that last May the inflation rate in the Eurozone countries rose to 2% compared to 1,6% in April and 0,1% in May 2020. Overall, the EU l inflation rose to 2,3% from 2% in April and 0,6% a year ago.
In this context, the dollar strengthens and theeuro loses ground, with the cross slipping to 1,192 (-0,6%). The roaring greenback weighs on commodities. Metals collapse. L'gold spot loses 2,21% and trades around 1772 dollars an ounce. Futures are doing worse, with the August 2021 contract down almost 5%.
Also put the reverse gear Petroleum: Brent -1,65%, $73,16 a barrel; Wti -1,5% $71,05.
