The sharp drop in oil today weighs on sector stocks and stock exchanges, with European stock markets closing mixed, while Wall Street it is weak at the end of the morning, after a negative start.
Business Square loses 0,71% and retreats to 29.258 basis points, weighed down by profit taking and sales on Saipem (-4,36%) And Tenaris (-4%). The rises in utilities act as a barrier to today's declines.
In the rest of Europe, progress is confirmed Frankfurt, +0,25%, favored by purchases on Siemens, +5,9%, with the company recording an industrial profit higher than estimates in the last quarter. Green colors Madrid +0,31%, as they go down Amsterdam -1,17% Paris -0,57% and London -1,02%, where Burberry drops 11,15%, revealing the possibility of missing the revenue targets for the end of the year. The projections of the prestigious English brand have repercussions on the entire luxury sector at a European level (Moncler -2,62% in Milan). The oil majors are also suffering.
In New York, some stocks are in deep red that are useful for taking the pulse of consumers as the deadline approaches Black Friday. Walmart and Cisco are among the worst performing stocks in the S&P 500 with massive post-quarterly losses and projections that disappoint the market. Also Alibaba is leaving 10% on the ground despite the accounts exceeding expectations. What triggered the flight from the Chinese giant's stock was the announcement that the company will give up the spin-off of its cloud group due to US restrictions on chip exports.
The dollar falls, while unemployment benefits rise
The currency market is declining dollar andeuro appreciates, with a change around 1,0875.
Reducing the appeal of the greenback are some stars and stripes macroeconomic data, in particular some creaks coming from the world of work, a noise which, from a Fed perspective, is music for risk appetite. The belief that the cycle of increases is over is taking root more and more in the markets and the question, if anything, now concerns the timing and pace of future cuts.
Meanwhile today the data on weekly requests for unemployment benefits it is at a three-month high and well above expectations (+13 thousand, to 231 thousand, against an estimated 220 thousand). the overall number of workers receiving subsidies is 32.000 more for a total of 1.865.000.
Furthermore, after consumer and production prices were below estimates in recent days, today inflation also confirms slowing down import prices in October: -0,8%, versus -0,3% expected.
The context brings back purchases of bonds, in particular US securities are seeing rising prices and falling rates with the ten-year Treasury showing a yield falling to 4,466%.
Deep red oil
Among the negative protagonists of the day is the Petroleum. The drop in crude oil prices worsens further today, with hopefully positive effects on inflation, but with immediate negative effects on oil stocks.
The January 2024 Brent future loses 4,15% and trades at 77,81 dollars per barrel; while the December 2023 contract for Texas crude lost 4,45% to 73,25 dollars a barrel.
The origin of the sales would be the increase in oil inventories in the US, well beyond experts' expectations, but also a slowdown in production by Chinese refineries. The drop in house prices in the celestial empire also weighs on global sentiment, at a pace not seen since 2015. A figure that weighed down Asian stock markets, which closed lower.
Piazza Affari limits the damage with utilities
Utilities, traditionally defensive stocks and in recent days also driven by good company results, took care of limiting the damage in Piazza Affari. The list of the best stocks of the day opens with A2a +2,55%, followed by Erg + 1,36% Ivy + 1,36% Enel + 0,85% Terna + 0,78% Italgas + 0,45% Snam + 0,11%.
Also on the front page Inwit + 0,71%.
Leonardo +0,17% takes a timid step forward, helped by the announcement of the start of a secondary offering for the sale of a minority stake in the US subsidiary, Drs. The resulting funding could be used by the Italian defense group for possible acquisitions and alliances.
Among the banks it appears in the top ten of the day Unicredit +0,3%, while Bper loses 2,78% e Monte Paschi Bank the 2,18%.
Among the blue chips in decline, in addition to Saipem and Tenaris, there is Eni -2,17%. The realizations are felt heavily for Diasorin -3,42%.
I'm in red Campari -2,44% Cnh -2,44% Interpump -2,24%.
Spreads down
The secondary appears in a completely different mood, where the spread between the Italian and German ten-year contracts it drops to 173 basis points (-3,26%) and rates fall. The BTP at the close it was indicated at +4,32% and the Bund at +2,59%.
Christine Lagarde he spoke today, but not about monetary policy. The president of the ECB underlined that the European financial system has so far avoided the worst-case scenario of systemic risks, but we cannot lower our guard. European banks in particular could suffer significant losses if they had to sell fixed-rate bonds they hold to raise liquidity.
