The latest stock news indicates that the dollar is crushing European stock exchanges grappling with new signs of recession that emerged this morning with flash data on manufacturing in the Old Continent. It's no exception Business Square: in the last session before the elections the index Ftse Eb yields more than 3%. Similar script in Frankfurt, lackluster Paris, massive sales in London -1,2%. The Euro-Dollar exchange rate (0,9740) fell to new lows for 20 years, while the Dollar Index, against a basket of six main currencies, climbed to the new multi-year record of 112,07.
Stock market latest news: only the banks are saved
Based on the latest stock market news, the session is conditioned by the sharp drop in the Swiss credit -7,2% after the announcement of the investment banking restructuring and the request for new capital. The news partially slowed the recovery of the banking sector, the only one in good health in view of higher interest on current accounts thanks to the increase in interest rates. L'Stoxx index of European banks is the only positive sector over the last month with an increase of around +2%. The mean of the iStoxx 600 index shows a drop of 8%. Thursday Mario Orcel, CEO of Unicredit, declared that 2022 for banks "will be the best year ever in a long time".
Goldman Sachs this morning confirms the Buy judgment and the target price of 17 euros on the institute (-1,44% after the rally on the eve). In the note, the investment bank writes that the interest margin should rise much more in the coming quarters than the company and the consensus forecast. Capital ratios are solid enough to support the 16 billion shareholder compensation plan between 2021 and 2024.
Also on Intesa Sanpaolo -1,3% Goldman reiterates the Buy judgment and the target price at 2,65 euros. Also in this case, analysts speak of the positive effects on the income statement deriving from the increase in market rates.
Spread at 222 points, however, just above the level (207 points) reached on the day of Mario Draghi's resignation. But in the wake of the rise in US rates to their highest levels in ten years, bond yields are moving: the XNUMX-year BTP jumps to 4,22%, a yield never seen since 2013. But the Waist to 2,01%.
Piazza Affari sinks under the weight of the 2022 general elections
In Piazza Affari the wait for the elections of Sunday 25 September, now very close, is also taking center stage. For some observers, bond prices already incorporate the most probable outcome of the vote. But the orientation of the majority on the Recovery Fund will be decisive: the first real exam could be next Moody's ratings scheduled for Friday 30: the agency has already reduced the Italy outlook on August 8, after the premier's resignation.
Meanwhile, while awaiting the next discounted increase in European rates (50 or 75 basis points), Europe is dealing with the recession effect. L'PMI composite index of the euro zone, considered a good indicator of economic health, fell to 48,2 in September from 48,9 in August: this is the third month below the threshold of 50 that separates growth from contraction.
"A recession lurking in the eurozone as companies report worsening business conditions and intensifying price pressures related to soaring energy costs,” said Chris Williamson, chief economist at S&P Global. “Although there have been some signs of improvement in the supply chains – he continued – the focus has shifted to energy and the rising cost of living which is not only affecting demand, but in some cases is also limiting manufacturing and service sector activity.
brake the Petroleum -2%, pushing oil companies down: Tenaris -4%. Eni -2,5%. Down Enel -2%. Snam 1.9%. Barclays has revised its target price downwards to 5.3 euros.
In Milan there is still the spotlight today Telecom Italy started up but then down with the rest of the list.
