Wall Street taking a break awaiting tomorrow's decisions from the Fed. But the Dow Jones, -0,7% yesterday, closes a formidable October: +14%, a record since 1976, confirming that the market senses a change of direction. This is what Michael Wilson thinks, the (bearish) strategist of Morgan Stanley who has so far hit all the predictions: lA turning point is near, he says. After a new increase of 75 points, the central bank will slow down as early as December. A signal in this direction is activated this morning from Australia. There Reserve Bank raised the target cash rate by a quarter point to 2,85%. The increase, in line with expectations, is the first of 25 basis points, after four consecutive ones of fifty basis points. The cost of money is at its highest level in the last ten years.
Double-digit inflation in Europe, Italian GDP ok
Positive climate also in old Europe as well, judging by the run of inflation, wouldn't have much to celebrate. In October, the consumer price index marks a record increase of 10,7% year on year, accelerating from +10% in September. But Italy which, thanks to the tourism favored by the climate, has made a surprise GDP growth also in the third quarter (+0,5%). Since January the increase is 2,6%, the acquired growth for 2022 is 3,9%: the recession is further away.
Piazza Affari +10% in October
Piazza Affari +0,55%, at 22.652 basis points, it is once again one of the best performers. At the end of an excellent October the rise in the Milan Stock Exchange is close to 19%, better than Frankfurt (+9,7%) and Eurostoxx (+9,2%).
La best European blue chip of the month was Airbus +23%, but immediately after there is Eni +22%. At the sector level, October was the month of the companies travel (+16,5%) and ofthe energy (+ 11,5%).
The future of the index Euro Stoxx 50 is up by 0,4%, the same positive change for the future ofS&P500.
On Wall Street, more sales on the big names in Tech
While waiting for the Fed, the Nasdaq giants are licking their wounds after last week's tumultuous losses. Still under fire Meta (ex Facebook) -30% from communication of accounts. Little moves Amazon and Google, Apple -1,4% for problems related to Chinese factories affected by Covid.
The index Nasdaq, yesterday -1,03% in October gained only 4%, ten points less than Dow and four with respect to the index S&P.
Inflation and rates, the spread rises to 223 points
Pending the decisions of the Federal Reserve, the bond market is moving little, the Ten-Year Treasury Notes it is more or less on yesterday morning's levels, at 4,03%.
The price trend in the euro area and expectations of the Fed weighed on the Italian secondary, which closes in red. The spread between 10-year BTPs and Bunds with the same duration, it rises to 223 basis points; the returns are respectively 4,31% and 2,08%.
Hong Kong rebounds, but GDP falls (-4,5%)
Asia Pacific stocks rose at the end of the first session of the new month. They are guided byHang Seng of Hong Kong, +2,4%. In this list they are highlighted Tencent (+8%), Alibaba +7% and Xiaomi +6%.
Tonight the Census and Statistics Department released the GDP data of the former English colony: in the third quarter the contraction year on year was -4,5%: economists expected +0,7%. The decline, explained in the note, is largely attributable to the trend in external demand.
CSI 300 of the Shanghai and Shenzhen price lists +1%. The indications on China's economic conditions included in the index are better than expected PMI Manufacturing by Caixin. In October, the indicator rose to 49,2 from 48,1 in September: consensus at 48,5.
Toyota slows down, hit by the chip crisis
Tokyo Nikkei +0,3% despite the slowdown of Toyota: due to the chip crisis, the giant has reduced the estimates on cars produced in 9,2 to 9,7 million (against the expected 2022). Profits are also down.
Kospi of Seoul +1,3%. South Korea's external trade deficit widened to $6,7 billion in October, from -3,4 billion in September. Exports fell 5,7% to 52,5 billion, the steepest contraction since August 2020.
Bovespa celebrates Lula's victory
Last night there Stock Exchange of Brazil he celebrated Lula's victory with an increase of +1,3%, which projected the performance from the beginning of the year to a spectacular +36%. Down though Petrobras -2%: the privatization promised by Bolsonaro, who has not yet admitted defeat, is moving away.
Petroleum up 1,3% at the start of the session (Brent at $93,60). In October +8%, after four consecutive months in the red. OPEC has raised global consumption estimates and has called for more investment in research and extraction,
Continue the descent of European gas -37% in October in parallel with the steps forward to set a ceiling on the price of gas.
Campari toasts in Piazza Affari, pirates in action on Landi Renzo
After the big coup in the world of bourbon toast Campari: Bernstein raises the target price to 11,8 euros, Deutsche Bank raises a Buy, target from 10 to 12 euros.
Several i rating cuts:
- Enel: RBC lowers the target price to 8,5 euros.
- Leonardo: Stifel cuts the target price to 11 euros.
- FinecoBank: JP Morgan reduces the target price to 16,7 euro.
Moving on to Ps, at the end of the offer period rights equal to 74% of the capital increase of 2,5 billion euro were exercised which, between subscriptions and binding commitments, is approximately 93% covered. The government intends to manage MPS's exit from the capital in an orderly manner, leaving a strong bank in a position to stay on the market, said the Economy Minister Giancarlo Giorgetti.
Landi renzo decided to postpone the approval of the quarterly results from 15 to 30 November "for precautionary reasons" after having suffered a computer attack which made some company servers temporarily and partially unavailable.
