Markets are awaiting guidance from themeeting planned between Donald Trump and Xi Jinping, but diplomacy seems not to be enough to ease investors' concerns about theinflation and therefore for further rate hikes, while the price of the Petroleum It returned above the $103 mark. Yesterday Wall Street closed down, weighed down by a jump in government bond yields above key levels and this morning the same pressures are found on Asian squares ed europee
Markets await signals from Trump's ongoing negotiations with China and Iran.
After a lavish welcoming ceremony yesterday, Trump and Xi are expected to discuss a range of issues today, from Taiwan and Iran to concerns about artificial intelligence. Hopes for a new Chinese commitment to purchase Boeing aircraft have dimmed, but at least, according to Treasury Secretary Scott Bessent, Washington and Beijing could reach an agreement. extend the trade truce which would have expired on November 10th.
Meanwhile, we are following the mostly contradictory statements between Iran and the United States:Iran he said to remain open to diplomacy to end the war between the United States and Iran, although the two countries remain at odds over how to do so. Trump reiterated threats of further escalation, while the Iranian president He vowed not to give in. Brent crude oil futures, which appeared to be easing at the start of the Asian session, are now rising again, with Brent above $103.
Wall Street fell yesterday, weighed down by the jump in government bond yields
Wall Street closed down yesterday and returns detreasury bonds US 10-year yields rose at the highest level since 2007, after data showed that theeconomic activity US crude oil hit its highest level in five years in September, fueled by a surge in new orders. Dow Jones Industrial Average fell 0,68% and the index S & P 500 by 0,75%. The Nasdaq The Composite index fell 1,13%, a sharp reversal after hitting an all-time high on Tuesday. Composite PMI The preliminary U.S. manufacturing and service sector index rose to 58,4 this month, the highest level since July 2021.
A strong economic situation, while oil prices remain high suggesting pressure on inflation have pushed investors to predict further rate hikes of interest on the part of the Federal Reserve. The yields of the 2-year Treasury bonds, more sensitive to interest rate changes, rose 11,4 basis points to 4,891%, after hitting a high of 4,947%, the highest level since May 2024. The yield on the benchmark 10-year bond jumped 13,89 basis points to 5,106%, the highest level since 2007.
In addition, the US Treasury Department recorded a very weak demand for a five-year bond auction $70 billion, due to the bond market collapse, with bonds selling at the highest yield at an auction since 2007. Traders in Fed interest rate futures now expect a 66% probability of a rate hike in October, up from 53% at the start of the day. Reinforcing the dovish tone, the Fed governor Michael Barr He said the central bank took a significant step last week to "recalibrate" short-term funding costs to reduce inflation, and signaled that further rate hikes are likely necessary. Investors are eagerly awaiting speeches from other Fed officials scheduled for today, including New York Fed President John Williams and Cleveland Fed President Beth Hammack.
Asian stocks decline. The Nikkei holds firm after returning from vacation. Australia reports another AI issue.
The heavy ones sales of government bonds Wall Street's sentiment spread to Asia-Pacific, with bond declines in Japan, Australia, New Zealand and emerging markets, while asian bags show mixed trends. The MSCI Asia-Pacific index fell 0,94% to 891,19, while the Japanese Nikkei 225 rose 1,30% to 65.861,04. Australian shares hit their lowest level in more than three months, with the benchmark S&P/ASX 200 index falling 0,7%, while China's blue-chip CSI300 index fell 1,29%. Kospi is up 0,9%.
With the reopening of Tokyo markets after three days of holidays, the yield of the 10-year Japanese government bond, reference benchmark, has jumped to highest in the last 30 yearsThe performance of the 10-year US Treasury bonds stabilized at 5,11% in Asian trading, after a 15 basis point surge on Wednesday. Meanwhile, alarm over the risks of artificial intelligence is returning.
The Australia said today that an OpenAI agent breached a government health data portal last June, gaining unauthorized access to files, in what may be the first known case of an AI agent hacking a government website.
The index of dollar, which measures the value of the greenback against a basket of currencies, fell 0,05% to 101,08, while the'EUR rose 0,03% to $1,1383. It yen The Japanese yen gained 0,24% to trade at 157,91 per dollar, while the pound strengthened 0,02% to $1,3239.
European stock markets are expected to open lower. At the Milan Stock Exchange, attention will be on autos, banks, and luxury goods.
European stock markets are expected to open slightly lower this morning, based on Eurostoxx 50 futures trading at -0,5%.
Saipem Board of Directors postpones Q3 meeting to November 18th and will also present 2027 guidance.
CarsAugust registrations up 5,3% in Europe: Stellantis up 3,5%, Volkswagen down 3,6%
LuxuryThe Arnault family will streamline its control of LVMH by merging Agache into Christian Dior.
CDP Places Fourth Yankee Bond for $1 Billion, Receives Orders 2,4 Times Offer
PsShareholders should consider the vote at the October 29th meeting on the bank's defensive strategy against Intesa Sanpaolo's takeover bid as a means of preserving their various options, according to CEO Luigi Lovaglio. Lovaglio also said that the two takeover bids for Banco BPM and Banca Generali can work individually and that investors so far appear to have grasped the rationale behind the M&A project. He expressed confidence that Credit Agricole, Banco BPM's largest shareholder, understands the rationale behind Monte dei Paschi's business plan. Delfin, the Siena-based bank's largest shareholder, will resolve its reservations about the dual offer at a board meeting to be held a few days before the October 29th meeting. The holding company has appointed Lazard as its advisor. Meanwhile, the government will abstain from voting at Monte dei Paschi's meeting, according to Economy Minister Giancarlo Giorgetti.
UnicreditA move on Banco BPM, with the approval of the Ministry of Economy and Finance, is imminent to prevent the former popular bank from falling under the control of France's Credit Agricole, according to Il Foglio.
FincantieriNorwegian subsidiary Vard has received a new order from Dong Fang Offshore for the design and construction of a Commissioning Service Operation Vessel, valued approximately between €66 and €75 million.
Enel-Edison. The Senate has definitively approved a law aimed at reviving nuclear energy production, nearly 40 years after the referendum that led to the closure of reactors in Italy. Minister Giorgetti said that consensus is growing in Europe on the need to introduce a tax on energy companies' excess profits.
Mayor Maire S.p.A. announced that on September 24, it launched its share buyback program for a period of 18 months and a maximum of 5 million ordinary shares, corresponding to 1,52% of the company's total outstanding ordinary shares. The maximum potential outlay is €60,95 million. Maire currently holds 579.355 treasury shares (0,18% of the share capital).
