After yesterday's collapse, the European stock exchanges missed the "dead cat bounce", the typical reaction after a session in sharp declines, only to then recover some positions during the session, before the opening of Wall Street expected in the red for the fourth day in a row.
Stock market latest news: Milan reduces the decline, towards closures in the red in Europe
The Milan index reduces the decline to 0,33%. just above 23.600. The others too EU stock exchanges are starting to close the week in the red. Among the worst i real estate securities -2,5% followed by tech and by tlc, The British game developer bucking the trend Games Workshop +17,1% after the agreement with Amazon. On Thursday, the squares of the Old Continent suffered the worst loss since May.
In December the index SME composite calculated by S&P Global improved to +48,8 points from 47,8 in November, exceeding the forecast of 47,90. December was the sixth month below the 50-point threshold separating growth from contraction, the longest negative streak since June 2013. Inflation in Germany, the eurozone's largest economy, is likely to be higher than expected, while economic growth will be weaker and recession next year is now certain. She said it Bundesbank in a biennial update of economic forecasts. The risks to economic growth are mostly tilted to the downside, mainly due to potential shortages in energy supply.
Stock market latest news: Wall Street futures down. Bonds and dollar
The futures of Wall Street worsen, with a drop of around 1%.
The bond market also reflects the feeling that the European economy is in worse shape than the US. In the face of a Treasury at 3,49%, sales on bonds in the Eurozone continue. The construction sector ten-year rate rises to 4,39%, the highest since the beginning of November. spread with the Bund a 220 basis points.
The euro dollar is little moved and trades at 1,061, but remains at its highest level since May.
The air of recession is reflected on oil prices, down by 2%, European gas prices are also slowing down to 123 euros per mWh. The gas price cap deal would be close. “I am confident that the Energy Council will reach an agreement next Monday,” said Ursula von der Leyen, president of the EU Commission.
The markets are wondering if stock prices can return to the depressed levels of early September, before the year-end rally. Intermonte excludes the hypothesis for three reasons:
- Central banks have already slowed the pace of rate hikes, in light of the slowdown in inflation
- The drop in energy from 12 months ago. Brent is around 80 dollars against 91 a year ago.
- there have been no significant steps towards peace between Russia and Ukraine, but there have been some between China and the United States. The latest event only in order of appearance, the fact that now the Public Company Accounting Oversight Board (PCAOB) has claimed to have full access for the first time in history to inspect and investigate the accounts of Chinese companies.
Stock Exchange: the latest from Piazza Affari
In Piazza Affari it goes into orbit Azimuth +6% after signing a letter of intent with Unicredit +0,9% to start a commercial partnership for the distribution in Italy of new asset management products. Azimut will independently set up and manage a management company in Ireland which will develop investment products to be distributed in Italy through the Unicredit network on a non-exclusive basis. The launch of the funds for Italian clients is scheduled for the second half of 2023. UniCredit, which returns to the sector after the sale of Pioneer to Amundi will have the right to exercise a call option on the Irish management company, five years from now or sooner.
After the rate increase, the others are advancing banks: Chemistry + 1%. Fineco +0,8%.
Weak energy sector (Saipem -1,9%) and utilities: A 2nd -1,7%. However, Snam and Italgas are holding on. In red Eni, despite the stock being included in JP Morgan's list of preferred stocks for 2023.
The recession weighs on the luxury: on Moncler -2,6% Société Générale cut the target price to 57 from 61 euros; Ferragamo drops by 1,7%, Tod's -2%.
At the bottom of the FTSE Mib heavy Diasorin -3,7%. Ovs recovers +2% after the 6% drop suffered yesterday in the wake of the third quarter results. Akros raised its buy recommendation from neutral.
Weak Fincantieri -0,30% after the announcement of business plan 2023-2027 . In an interview with Reuters, CEO Pierroberto Folgiero said he expects sales of naval vessels to increase in the coming years as countries spend more on defense.
