The Stock Exchanges, in recent months, have accustomed us to sudden changes of mood and even today the script was no different.
I European lists close higher, but far from the session highs and Wall Street, after a good start, is now moving in negative territory.
Business Square gains 0,7%, however missing the link to the 21 points (20.930) reached during the day. Pharma, bank and utility stocks are good, oil services are bad. There is no peace then for Ps, which today loses 42,11%.
In the rest of Europe Paris +0,9% leads earnings with Essilor Luxottica +3,19%, they follow Frankfurt + 0,69% Madrid + 0,42% London +0,12%. Bucking Amsterdam -0,38%.
On the currency market theeuro it is down against the dollar and trades just above 97 cents. The pound slips.
Among the raw materials goes down the Petroleum, with Brent losing 2,63% and trading at 92,08 dollars a barrel.
The price of the gasaround 146 euros per megawatt hour with European storage sites around 91% full and Germany's 95%. We also hope for a mild winter, while Putin tries to cut off Europe from the distribution of methane and Turkish President Recep Tayyip Erdogan announces the construction of a hub for Russian gas in the European part of his country.
High Volatility Session: Political Earthquake in London
The explanation for this volatility is not always at hand, because the hot fronts are many and well known: inflation, monetary policies, risks of recession, war, to which, these days, we add the contortions of the British government and the quarterly Usa, with some big banks showing their accounts today.
The European lists reached the positive peak during the day more or less in correspondence with the news of the cambit of the Chancellor of the Exchequer in London (Kwasi Kwarteng leaves, Jeremy Hunt enters) and the consequent changes to the tax plan that has created so many problems for the pound and the gilt.
Quarterly Use two sides
In New York, meanwhile, the indices are down, with the Nasdaq which loses more than 1,5%.
After yesterday's higher-than-expected inflation data (which strengthened the probability of a fourth rate hike by 75 basis points by the Fed), attention is focused on the quarterly to understand the extent to which the economic picture is deteriorating. The accounts of the big banks seen in the US morning are in chiaroscuro: JPMorgan Chase (+ 2,61%) and Wells Fargo (+2,6%) performed better than expected and are leading the rises on the S&P 500, while Morgan Stanley (-3,7) and Citigroup (+1,65%) disappointed expectations. The outlook for this earnings season is not good: according to analyst estimates compiled by FactSet, corporate profits on the S&P 500 increased by only 2,4%; this would be the worst result since the third quarter of 2020, in the midst of the pandemic.
Tesla loses 3,6% with Elon Musk under federal investigation for his conduct in the purchase of Twitter (+0,8%) for 44 billion dollars.
US retail sales in September were unchanged from the macro agenda.
The eurozone, on the other hand, records its largest trade deficit ever: 50,9 billion is the trade deficit in August, mainly due to the increase in energy prices.
Piazza Affari one breath away from 21 points
Piazza Affari is approaching the psychological threshold of 21 thousand basis points, thanks to increases by Diasorin + 5,35% Recordati +3,19% and Amplifon +4,35% in the health sector. Utilities are recovering, many recently sold due to the rise in government bond yields: A2a +4,6%; Terna +3,44%; Italgas +3,21%; Snam +3,55%. Among the financial it shines Azimuth + 3,63%.
The biggest banks are in cautious progress: Unicredit +1,12%; Understanding + 0,35%.
Out of the main list, however, the debacle dthe Mps it is tragic, after yesterday's crash, the stock has been suspended several times today as well due to excessive downtrend. The market has not welcomed the terms of thecapital increase of 2,5 billion euro which will start next Monday and in two sessions the value of the share has dropped to 9,90 euros from 25,58 euros on Wednesday. Consob approved the share offer document, but underlining that the capital increase of MPS "has characteristics of strong dilution and this circumstance determines the risk that during the offer period of the new shares there will be a strong volatility of the share price of the issuer, including an overestimation of the market price compared to its theoretical value”. "To prevent this risk, the capital increase in question will be managed according to the so-called rolling model", which allows, starting from the third day, the early delivery of the newly issued shares for which the rights have been exercised.
The worst blue chips of the day are two oil services like Tenaris -3,83% and Saipem, -2,26%, even if it is not all the oil sector that is affected by the sales as seen with Eni +0,8% and, among the smallest, with Saras + 7,49%.
Out of the main basket Garofalo Health Care it appreciates by 4,71% after announcing yesterday the signing of binding contracts for the acquisition of 100% of Gruppo Veneto Diagnostica e Riabilitazione. According to Equita, this is a "positive deal" as it strengthens the group's presence in the Veneto region with the acquisition of a company that has "excellent profitability and offers various top-line growth options" .
Spreads seesaw, then wane
The Italian secondary closes in green, after some heeling: lo spread between the benchmark 10-year Btp and its German counterpart, it drops to 232 basis points (-4,37%). The rate of the BTP falls to +4,67% and that of the Bund rises to +2,35%.
Government bonds in the euro area remain tuned to news from the ECB, while according to Bloomberg Economics economists, the rate hike will continue until March 2023, reaching 2,25%. Then Eurotower will also start with the Quantitative Tightening, an economic restriction maneuver on a par with the increase in the cost of money at the rate of 29 billion a month.
