I new lockdowns and street protests in China rattle financial markets and weigh on oil, while investors stay tuned to central banks for their next moves. In particular, the president of the ECB Christine Lagarde, in the European Parliament, says he sees no signs of a peakinflation in the block. Indeed, the race in prices risks turning out to be even higher than expected so far. “We clearly need to keep raising interest rates – argues Lagarde – and my suspicion, even if I don't want to venture too far into the future, is that we still have a long way to go”.
According to S&P, the European central bank will raise rates by 75 basis points at its next meeting.
Declining European price lists
While awaiting important macro data which will be released shortly (inflation in the euro area on Wednesday and the US job market on Friday), the start of the week is thus characterized by listless weakness.
Business Square it lost 1,12% (24.440 basis points), weighted down by oil stocks. The situation is similar to Frankfurt -1,06% and Madrid -1,13&. Losses are fractional a Paris -0,7% Amsterdam -0,33% London -0,16%.
The restart is also in red a Wall Street, after the long Thanksgiving weekend and into the day of Cyber Monday which, according to a study, could lead to 11,6 billion online shopping. Cyber sales favor Amazon (+1,3%), while Apple Lossless Audio CODEC (ALAC), it retreats (-1,9%), alarmed by the protests in the Foxconn factory in Zhengzhou, in inland China, where the iPhones are produced. According to a source cited by Bloomberg, the protests could lead to a reduction in production of 6 million iPhone Pros this year. Finally, the energy sector is the worst performer in the S&P 500.
Euros at 1,04 with Lagarde; oil down with China
The euro remains in the 1,04 area against the dollar in the light of what ECB president Lagarde said, that inflation in the bloc has not yet reached its peak. A statement which, according to some observers, lays the foundations for further developments rate hikes by the Central Bank to the point of bringing those of reference into restrictive territory.
As for the raw materials the Petroleum revived after the opening of Wall Street and after hitting a year low, due to fears of a slowdown in the Chinese economy, the main importer of crude oil in the world. At the moment the wtf climbs 0,64%, $76,75 a barrel; Brent +0,35%, 84 dollars a barrel
Spreads up
While the T-bond prices they go up and their rates go down, the general aversion to risk and Lagarde's words weigh on government bonds in the euro area, which see yields rising.
Pawn the Italian card, with the spread between 10-year BTPs and Bunds with the same duration at 192 basis points (+2,1%) and rates indicated respectively at +3,9% and +1,98%.
In Piazza Affari Leonardo and Iveco are doing well, energy is down
In Business Square few stocks are on the rise. Among the blue chips the best performances are those of Leonardo +0,84% and Iveco +1,47%, for the rest the increases are of little significance.
The declines, on the other hand, are substantial and mainly concern oil stocks.
At the bottom of the Ftse Mib are Saipem -3,32% Tenaris -2,72% Eni -1,96%.
The utilities with Enel -1,65% and A2a -2,45%.
The new measures envisaged by the government in the field of energy contribute to the weakness of energy stocks taxes on extra profits. In particular, according to what Reuters read in a draft, the government plans to apply an extraordinary solidarity contribution, with a rate of 50%, in the form of a temporary levy for the year 2023 on the incomes of energy companies that have benefited from the soaring oil and gas prices.
“Although it is a one-off - comments Equita - it is negative news for utilities which should record significant improvements in 2023 results thanks to a normalization of the hydroelectric scenario and a lower un-balance loss in the sale of electricity ( losses from fixed price contracts in 2022). For the broker, the companies that could be most impacted are A2A, Enel, Iren (-2,61%) and Erg (+0,54%), the latter destined to replace Atlantia on the main list.
Apple's headaches worry stm, -2,16% Among bad banks Understanding -1,97%. Bper dropped 0,91% after the news of the agreement for a partnership with the Gardant group and Amco for the management of non-performing loans, which includes the sale of up to Npe 2,5 billion.
