The financial week starts quietly after the new heavy slide on Wall Street on Friday. The start of the Stock Exchange promises to be uphill: European and US stock futures, both down by half a point, anticipate a nervous start, under the threat of the winds of war blowing from Moscow and the bombs on Kiev but also of the determination of the Federal Reserve (Fed) which interprets the latest positive data on US jobs as a license to further raise the interest rate lever.
Tokyo Closed, Chinese Tech Suffers
Moderating the downward thrust, at least at dawn, are the holidays in Tokyo (but futures on the Nikkei fall below 27 points) and the Korean Kospi. Even more, the American holiday of Columbus Day: the bond market is not working today but the indicative prices, underlines Reuter, give 80% an increase of 75 basis points for both the Fed and the ECB. British rates could rise by 100 points. This afternoon there will be speeches from Ohilip Lane, chief economist of the ECB, Fed Vice President Lael Brainard and Charles Evans of the Chicago Fed.
Stock exchanges are down China, where the twentieth congress of the Communist Party opens in six days, the five-year appointment which should reaffirm the power of Xi Jingping. Hong Kong's Hang Seng loses ground -2,5%, dragged down by the Tech sector -3,5%.
The CSI 300 of the price lists is also down Shanghai and Shenzhen -0,4%. The price of coal has shot up to its highest level in the last two and a half months, also because the safety alert is at its highest in all Chinese mining infrastructures in the days preceding the work of the Communist Party congress.
Washington raises new barriers on chips
The conflict with Washington over chips escalates. The US Department of Commerce has introduced new restrictions on the People's Republic of China's (PRC) ability to purchase and manufacture certain high-end chips used in military applications. Hua Hong Semiconductor, a Chinese maker of chips for special applications, fell 9% to its lowest level in the last two years.
The BTP restarts from the highs, the Bund at 2,19 after the vote
The euro/dollar exchange rate remained unchanged this morning at 0,973. The construction sector ten-year period starts again from 4,68% in the ninth negative week, the Waist from 2,19% yield. The German governing coalition has passed the test of elections in the state of Lower Saxony, the seat of Volkswagen. The SPD has lost a few percentage points of votes compared to five years ago, but remains in the lead at 33,4%. Greens jumped six percentage points to 14,5%. The CDU has reached a post-war low at 28% and the right-wing nationalists (AFD), while having doubled, have not much exceeded 10%.
The EU diplomatic work is intense in the search for a square on thethe energy. Tomorrow, Tuesday 11 October, the European Union's energy ministers will meet again for an informal Council in Prague, in preparation for the new measures against high bills, while a summit between NATO defense ministers is scheduled for Wednesday and Thursday in Brussels.
Read also: Prague summit: the EU inaugurates the new 44 format but has not yet decided on the gas price cap
Wall Street looks at inflation, snubs the quarterly
Autumn meetings of the Monetary Fund begin today in the US. But two are the most awaited appointments from global finance. The publication, on Thursday, of the index of producer prices in September (a modest drop from 8,3 to 8,1 is expected) and theUS inflation and the launch, from Friday, of the campaign of quarterly.
Analysts are not having too many illusions about the next US quarterly campaign. According to the Wall Street Journal, overall profits will drop by 34 billion compared to the previous three months. It starts on Friday with big banks (JpMorgan, Chase, Wells Fargo and Citi), Delta Airlines and Pepsico.
Oil over $98, gas at $156
Il WTI oil traded this morning down 1% to 91,7 dollars a barrel. Texas crude gained 16% last week, its best result since the outbreak of war in Ukraine. Brent at $98,04. Today prices are held back by the expectation of a weakening of demand due to the monetary tightening in progress in the United States.
Descalzi: this is how Russian pressure is reduced
- Il gas Europe restarts at 156 euros per mWh, the lowest price since April. The energy system is adapting between an increase in storage, a reduction in consumption and more efficiencies, explained the CEO of Eni Claudio Descalzi: “Russian gas – he said – represented the vast majority of supply, now it is at 9%, the system has replaced it by taking it elsewhere, through the regasification terminals: Algeria has increased the supply by 3 times, Norway and the The USA have also increased, there has never been a time when demand was greater than supply”.
The takeover bid for Atlantia is underway, a new delisting in sight
- Takes off theTakeover bid on Atlantia, the voluntary takeover bid by Schema Alfa on the holding company controlled by the Benettons. The operation will end on November 11th.
- Tonight the Ministry of Economy and Finance will communicate the amount and characteristics of the BTPs that will be issued on 13 October.
