It doesn't change. The Fed minutes confirmed yesterday that the central bank considers "the risks of a slowdown to be less than the inflation race". The data on US consumer prices due today is unlikely to change the orientation of US bankers. And so today, October 13, the Stock Exchange cautiously pulls the oars in the boat in Europe, preparing for the worst: Wall Street, despite Pepsico +4,2% has inaugurated the quarterly season with a more than positive balance, it is down for the sixth day in a row.
The depressed atmosphere is shared by all the lists of the Old Continent: the futures of the EuroStoxx 50 index lose 0,3%. At the opening the worst is London (-0,86%), followed by Frankfurt (-0,39%) and Paris (-0,25%). The best is instead Milan which, after a red start, finds courage at +0,30% driven by Mps. We'll see how long it will last.
In Europe, only luxury is advancing
Piazza Affari closed in the red, -1,27%, slightly better than Madrid - 1,3% for the other bank-centred list. Best of all, Paris, thanks to the positive results of Lvmh +2,2%: purchases by American consumers, favored by the superdollar, are supporting the luxury sector. So much for the recession.
Bond, the battle of Britain is raging
The hot spot of crisis remains London. Last night, denying the rumors of the Financial Times, the Bank of England confirmed that it will only buy the gilts held by pension funds until Friday. The yield on ten-year bonds came close to 5% to close at 4,429%, still close to the maximum for 14 years.
Alarm on BTPs after the Bot auction
The tensions on the debt markets are also damaging the BTPs, once again dangerously at the center of the attention of the "bond vigilantes" (the professional bond speculators). The spread rose to 246 points, for a BTP yield of 4,79% (bund a
2,34%). During the session, a 13-year high of 4,82% was reached
In the 12-month Treasury bill auction, the Treasury had to pay the highest yields for over ten years to place the offer of 6 billion: 2,532%, the top since August 2012, compared to the 2,091% recorded in the mid-September placement.
The ECB, despite signs of recession, has decided to fully embrace the Fed's line. Christine Lagarde reiterated that raising interest rates is the most appropriate solution to combat inflation. Frankfurt has started a discussion on when to start quantitative tightening, i.e. the withdrawal of the program launched when the great challenge to be fought was that of deflation.
Sixth decline in a row for Wall Street
New session marked by volatility for Wall Street: Nasdaq -0,09%, S&P 500 -0,33%, Dow -0,10%.
The statistics of the Ppe (production prices) confirm the tensions on inflation. According to forecasts today, the CPI (consumer price index) should report that in September the rise in prices was 8,1%, down from the +8,3% in August. Excluding food and energy, the increase should be 6,5% yoy.
Quiet bond market.
On sale today the helmet for the Metaverse: 1.799 euros
Companies already active in the metaverse could shine. Meta Platforms presented its virtual reality viewer tonight, it costs 1.799,99 euros, more than an iPhone but half of Hololens Il, Microsoft's augmented reality helmet for companies.
Asia in red: Tokyo in the field to defend the Yen
The downtrend also prevails in Asia Pacific. Tokyo's Nikkei falls -0,5% despite the interventions of the central bank to avoid further increases in the dollar.
Hong Kong's Hang Seng loses -1% to 16.530 points, at new long-term lows. The CSI 300 of the Shanghai and Shenzen lists are also down -0,2%. A report by HSBC points out that multiples of the Chinese stock market have fallen to very low levels.
The Kospi of Seoul and the Indian Sensex -0,3% were also negative. Just above parity Sydney +0,2%.
Gas: Europe will pool purchases
WTI oil was little moved at $87 a barrel, US benchmark crude ended all previous sessions of the week lower, -2,3% yesterday. OPEC cut its forecast for global crude oil demand in 2022 for the fourth time since April, also reducing its forecasts for next year, citing slowing economies, a resurgence of Covid cases and high inflation.
Advance albeit with difficulty, the common EU line on gas +2%. "Common purchases of gas for storage, a more coordinated energy diplomacy for gas with reliable partners, a further reduction in demand, a more representative index, but on a voluntary basis, to the TTF". These are some of the proposals that, in an unofficial document, Germany and the Netherlands have put forward on the energy dossier. The two countries do not mention the price cap on LNG imports but affirm that "it can be considered a cap on Russian gas via pipeline".
In Piazza Affari: Ok to the Mps increase, chills Carige for Bper
White smoke in sight for thecapital increase of Monte Paschi which closed up 11% on Wednesday against the trend in the stock market. The eight institutes of the consortium will guarantee all of the 2,5 billion euros of new MPS shares to be issued: but in the face of "irrevocable commitments" received from private investors for 500 million, and excluding the 1.605 million for which in June the Treasury, first shareholder with 64,23%, has already committed. To highlight the rebound of the institute's subordinated bonds. Actions take place in Piazza Affari: +4,5% at 9:23 on Thursday morning.
In the spotlight Bper after the sentence of the EU court of justice which, surprisingly, rejected the decision of the commissioner of Carige in 2019. But the sentence should not have consequences on the entry of the Ligurian institute into the orbit of Bper.
Italgas Goldman Sachs raises rating to Neutral, from Sell.
Intesa Sanpaolo. On 11 October it concluded the buyback program aimed at canceling it, launched on 4 July, having purchased a total of shares equal to approximately 4,95% of the share capital for a total value of approximately 1,7 billion.
Enel completed the sale of the entire equity investment held in Pjsc Enel Russia, equal to 56,43% of the share capital, a Pjsc Lukoil and to the private fund Gazprombank-Frezia for a total consideration of approximately 137 million euro.
Snam. Goldman Sachs cuts the target price to 4,65 euros. The company approved the annual renewal of the Emtn program launched in 2012, increasing the maximum total value to 13 billion euros from 12 billion of the previous program, to guarantee the company greater flexibility.
Webuild, Fincantieri. Webuild will be the leader of the consortium that will build the New Breakwater of the Port of Genoa, alongside Fincantieri. Webuild participates in the construction consortium with a 40% share, Fincantieri's share is 25%
