I European financial markets close a volatile session, dominated by nervousness about selling government bonds, with US macro data and central banks on a war footing against inflation. Business Square it is in the red, -1,27% (20.466 basis points) but flying Ps (+10,07%), as the market is betting on the success of the 2,5 billion euro capital increase. The rest of European equities call Madrid in black jersey, -1,3% and ad fractional losses Amsterdam -0,81% Paris -0,25% Frankfurt -0,37%.
Outside the eurozone, morale remains low London, -0,9%,
Overseas Wall Street, after a shaky start, is moving cautiously higher awaiting the publication, during the day, of the minutes of the last meeting of the Fed and of the data on inflation due tomorrow. The question that keeps investors in suspense is: how far will the US central bank be ready to go on raising rates?
In Europe, the president of the ECB Christine Lagarde reiterates that raising interest rates is the most appropriate solution to fight inflation and Eurotower has launched 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. Dutch central bank president Knot needs at least two more significant hikes in euroland.
On the currency market theeuro it is confirmed in the 97 cents area against the dollar.
The strength of the greenback penalizes raw materials. The Petroleum Brent oil fell by about 2% to 92,35 dollars a barrel, also because Opec revised downwards the growth in world demand in 2022 by 0,5 million barrels a day.
Il gas price in the middle of the day it moved around 158 euros per megawatt hour (+1,2%), while Putin said he was ready to restart the Nord Stream 2, through Turkey, but warning that it will not give gas to those who put a roof and thus sending a message to the EU energy ministers meeting in Prague.
Germany e Holland in an unofficial document they put their proposals on paper, where they talk about joint purchases of gas for storage, more coordinated energy diplomacy with reliable partners, a further reduction in demand, a more representative index, but on a voluntary basis, to the TTF.
Piazza Affari nervous, Mps flies but the blue chips suffer
Square Business he veered several times in opposite directions during the session, to close with almost all blue chips in the red. However, Mps flies outside the main price list. According to Ansa, Anima Holding (-3,87%) intends to convene, as soon as possible and compatibly with the technical times required by the preliminary investigation, a board of directors to deliberate its intervention in the recapitalization.
On the Ftse Mib, the securities of asset management companies suffer the most: Azimuth -5,6% Finecobank -3,83% Moediolanum Bank -2,68%.
Sales hit oil services: Tenaris -4,69% and Saipem -4,05%.
Closes sharply down Leonardo -4,72%.
In the green area of the price list there are only four titles: Moncler + 2,77% Pirelli + 0,44% Campari + 0,38% Bpm bank -0,08%.
The spread rises; Bot yield at 10-year high; sell-off of British government bonds
The secondary market for government bonds closes in the red, where the spread between ten-year Italian and German it grows to 246 basis points (+3,48%) and rates continue to rise dangerously: +4,79% for the Btp; +2,34% for the Bund.
In today's auction of six billion euros of Boots 13 October 2023 the yield rose to the highest level for over ten years: 2,532%, the highest since August 2012, compared to the 2,091% recorded in the mid-September placement.
Things are not going well in the UK either where i applies twenty-years rose by more than 5% and 10-years reached record levels, at 4,57% and then decreased slightly to 4,5%.
To trigger this wave of sales on British government bonds the announcement of the British central bank to close the support program on Friday, after yesterday the Financial Times had written that the emergency bond purchase program worth 65 billion pounds could be extended. Yesterday the BoE's decision to step up its intervention to buy Gilts and inflation-linked bonds seemed to reinforce this assumption.
US producer prices higher than expected
To season the day of further discontent contributed the data on US producer prices in September, grown beyond expectations. A trend that does not bode well in terms of inflation in view of the trend in consumer prices that will come out tomorrow.
Producer prices increased by 0,4% compared to August (expected +0,2%) and by 8,5% compared to a year earlier (against estimates of +8,4%). For the core data (without the more volatile elements such as food, energy and commercial services) the increases are respectively +0,4% and +5,6%.
From the Eurozone, on the other hand, the macro news released in the morning was good: in August, industrial production rose beyond expectations, by 1,5% on a monthly basis and by 2,5% on an annual basis.
