A good sign: requests for redundancy payments are decreasing in the USA. It is an indication, Wall Street analysts explain, that employment is rising again, perhaps more than expected. And if tonight the Labor Department announces that the new jobs are more than the half million already expected, the financial week will end on a high note, comforted by the political agreement that avoids a federal default until December, the time to resolve the stalemate. In this context, tapering is less scary, as is the rise in energy prices, kept under control by Vladimir Putin. An ideal setting to enjoy the quarterly accounts from next week.
EVERGRANDE DOES NOT STOP SHANGHAI AFTER THE HOLIDAYS
The performance of the Asian stock exchanges on the day of the reopening of the Chinese stock exchanges after a week's holidays contributes to justifying the rise in futures this morning. The price lists reopen upwards, the Evergrande crisis, suspended from trading, for now, does not infect the rest of the market.
The Tokyo Stock Exchange also rose again (+1,7%) after the cold welcome to the new premier Fumio Kishida.
SAMSUNG PROFITS BOOM THANKS TO DEAR CHIP
Conversely, the Korean Kospi is down slightly, despite the boom in Samsung's profits which jumped by 28%, to the maximum thanks to the boom in semiconductors. Mumbai (+0,3%) and Sydney (+0,7%) rose.
Hong Kong was down slightly, but the spotlight was on Shanghai and Shenzhen after five days of closure. The CSI 300 index gained 0,9%. At 3,45 am (Italian time) positive indications arrived from the macroeconomic front: the Caixin PMI index on the expectations of service companies rose to 53,4 points, from 46,7 in August. The improvement that brought the index back above the threshold that separates contraction from expansion is completely unexpected: the consensus expected 49.
The unknown of the brick remains. On the Evergrande front, everything is silent, waiting for the giant wounded by 405 billion in debt to raise cash. But the Fantasia holding, another real estate giant, failed today to pay the interest on two bonds, which fell by 50%.
LEVI'S STRAUSS BOOM. TESLA MOVE TO TEXAS
The Wall Street session was positive after the compromise on the federal budget: Dow Jones +0,98%, S&P +0,83%. Better the Nasdaq (+1,05%) thanks to the push of the big names in technology.
The most brilliant title, however, is Levi's Strauss (+8,5%) after the excellent data from the queen of jeans.
Tesla (+1,3%) in the evening made it known that it wanted to move its headquarters to Austin, where its founder and CEO Elon Musk went to live in 2020 in controversy with the California authorities, who imposed certain week off due to the pandemic. In return, the Freemont plant will be upgraded.
The 10-year Treasury note returned to its highs for the period at 1,58%, from 1,55% at the close.
COMMODITIES RISE, BUT NATURAL GAS NOT
Raw materials have picked up again and inflationary pressures are making themselves felt again: the Bloomberg Commodity index closed yesterday up 0,7%, the movement continues this morning. However, the price of gas for Europe does not follow this trend: yesterday the TTF contract on the Dutch node closed down by 10%.
WTI oil is on track for a seventh straight week of gains, Texas crude up 1%, to $79,2. Brent at 82,44 dollars (+0,6%).
IRELAND RAISES TAXES ON MULTINATIONALS
Of note is the tax agreement with Ireland. Dublin will raise, as requested by the OECD, the corporate tax to 15% from the previous 12,5%, thus collecting 2 billion dollars more. The provision concerns 1.556 companies which employ more than half a million employees overall.
THE GAS GOES OFF, THE PRICE LISTS Escape ASPHIXIA
Bags breathe after having risked asphyxiation. The derivative on natural gas dropped 3%, from -10% yesterday, also following the reassurances on supplies to Europe from Vladimir Putin. Meanwhile, the energy minister of Qatar, the world's largest exporter, said natural gas prices had risen to "unhealthy" levels during a meeting with his EU counterpart. All sectors heavily penalized in recent days due to the rally in energy prices have reacted to the rise, also comforted by the departure of Wall Street. But it is too early to sing victory: on Wednesday the commodity index reached new six-year highs at 104,47 points and is about to close the thirteenth positive month in a row.
ECB PREPARES AFTER PEPP
Meanwhile, the publication of the minutes of the ECB meeting on 9 September shows that the board has discussed the reduction in purchases, however deeming it necessary to maintain an expansive orientation in force. According to Bloomberg, the European Central Bank is studying a new purchase program which should act as a buffer in the event that the end of the PEPP (expected in March) causes negative repercussions on the government bonds of the countries most at risk.
SPREAD DOWN, BTP SOLID BEHIND TREASURIES
The agreement in the US Senate on the debt ceiling has helped to ease tensions on the bond market: the rate on Treasury bills drops to 1,557%. The BTPs took advantage of this, reducing the gap with the bunds along the entire curve. The yield on the 2031-year 0,8401 which moves in the wake of derivative contracts closes at 20, the two-year yield narrows to 4 cents, down by 103 basis points. The spread drops to XNUMX basis points.
BUSINESS CENTER RETURNS TO 26 THOUSAND
The calm returns also on the stock lists. EuroStoxx 50 index +2,1%. Automotive, Construction and Basic Materials stand out with gains above 2%, closely followed by Utilities at +1,5%. Milan is close to 26 points (25.992) with an increase of 1,51%. The other markets did better: Frankfurt +1,86%, Paris +1,65%, Amsterdam +2,10%, Madrid +2,14%. Behind is London (+1,2%).
CARS, LUXURY AND BANKS START AGAIN
Shell was up 1%, although it announced a $400 million impact on third-quarter earnings from damage caused by Hurricane Ida in August.
In Paris Hermes +3%: HSBC has raised the rating to Hold. In luxury, progress of around 2% was also recorded for LVMH, Richemont and Kering.
Valeo also rebounds (+4,5%) together with the rest of the auto sector. The big Germans record increases of more than 2%.
The banking sector (+1,3%) was in great shape, at levels not seen since February 2020. Deutsche Bank (+3%), Credit Agricole (+2,2%) and HSBC (+ 2%).
STELLANTIS STARTS AGAIN (+3,8%), ENEL SUPERSTAR
Automotive stocks are also in sixth gear in Piazza Affari. Stellantis (+3,8%) rebounds after the heavy decline on the eve, followed by Ferrari (+2,18%), CNH Industrial (+1,89%) and Pirelli (+1,77%).
Day in great shape for Enel, up by more than 3%, in a positive session for European utilities after Madrid said it was ready to review in a less repressive key the mechanism that reduces the extra earnings that utilities generate when materials first go up. The companies that manage hydroelectric, nuclear and some renewable energy sources would be involved, including Iberdrola (+5%) and Endesa itself (+3%). In the wake of Italgas, Terna, A2A and Hera gain around one percentage point, while Snam lags behind.
ENI, THE LISTING OF RENEWABLE ENERGIES IS LAUNCH
On the other hand, oil-related stocks fell after the drop in crude oil prices from recent highs. Saipem drops by 1,4%, Eni +0,3%. The six-legged dog will bring the newco that integrates renewables and retail gas & power, provisionally christened Eni R&R, to the stock market. The board of directors approved the launch of the initial public offering process and the share listing, identifying the hypothetical "as the best solution to enhance the business". The aim is to complete the transaction during 2022, based on market conditions.
Construction is also lively, thanks to good results from European groups in the sector. Buzzi earns more than 3%.
CITI PROMOTES MONCLER, DRUMS AT 25% OF OVIESSE
Citi promotes the luxury sector, following signals from American consumers, despite declining confidence in China and other key markets. Moncler did well in September (+2,5%), benefiting from an improvement in the target price to 60 from 57 euros by Rbc.
Tamburi investment rose to 25,1% of Oviesse (from 22,7%). Banks also rose after the sales on the eve; Intesa Sanpaolo +2% and Unicredit +1,8%. Managed tonic: Banca Generali and Banca Mediolanum up 2%.
Falck Renew, a leading company in renewable energy, accelerates up by +7% reaching 7,37 euro, the highest since April 2007. Nusco shines at Aim (+7,94%) after the establishment of the subsidiary Nusco Energy.
