The expectation of Jerome Powell it ended up with stock markets in the red, because “the peak in interest rates – announced the president of the Fed – will probably be higher than expected”. A cold shower, if not freezing for i markets, who already feared this trend due to a better-than-expected macroeconomic picture and still very high inflation.
I European lists thus close today's session with various shades of discounts, while Wall Street it is moving in negative territory (Dj -1%, S&P 500 -1%, Nasdaq -0,72%) and is continuing to weigh the words of the central banker.
Square Business it loses 0,67% and stops at 27.761 basis points, with banks contrasted after the gains on the eve.
In the rest of Europe Frankfurt loses 0,61%, Paris -0,46% Amsterdam -1,09% Madrid -1,08% London -0,15%.
The dollar strengthens and the yields of two-year T-Bonds skyrocket
Il dollar strengthens in the prospect of a more aggressive Fed and theeuro it loses almost 1%, falling below 1,06, for a change around 1,0574.
Effects also on T Bond: the two-year bond yield gained more than 7 basis points, touching 5% (4,979%), the highest since 2007, while the 4-year bond returned above 3,97% during Powell's intervention, to then drop slightly to yesterday's levels (+XNUMX%).
In energy is down the Petroleum, already nervous before Powell and the futures of Brent and Wti lose almost 3%.
For gas it was a day of recovery and the quotations are back above 43 euros (43,475, +3,15%).
The focus now shifts to the macro data
La Fed policy it will depend on the performance of the economy and inflation, which is why investors' attention will shift in the coming days to data on jobs (Friday) and inflation (next week).
The Fed "is ready to accelerate the rise in interest rates, if justified by the data," said Powell, presenting the semi-annual report to the US Senate Banking Committee. Decisions will be made “meeting by meeting, based on the data and the outlook”. A process of continuous rate hikes is "appropriate" to bring inflation back to the 2% target, which remains "a long way off". "So far, apart from real estate, we see no signs of deflation in core services."
According to Radiocor after Powell's words, the market is now betting on a rate hike of interest, at the next meeting (of 21 and 22 March) by 50 basis points, and no more than 25.
Futures on Fed Funds (which indicate the chances that the market attributes to a monetary policy move) have revised the peak in rates to 5,61%.
At last month's meeting, rates were raised by a quarter of a percentage point to 4,5%-4,75%, the highest level since 2007; in December and November, rates were raised by 50 and 75 basis points.
Piazza Affari, Saipem, Nexi and Telecom go down
The worsening of the reductions also on the Milanese market had a higher cost for Saipem, -3,38%, nexi -3,07% and Telecom -2,29%.
Nexi seemed destined to celebrate accounts and forecasts, instead he soon entered the route to close among the worst. According to Barclays, the - confirmed - revenue growth guidance of over 7% in 2023 is not easy in the current consumption scenario.
Telecom goes down after yesterday's leap, while observers are still wondering about the desirability of field offers. The related parties committee should meet on Friday to evaluate the offer from CDP and Macquarie for the group's network. The board of directors should deal with it on March 15th.
Down Inwit -3,03% and stm -1,78%.
Banks, on the other hand, recovered during trading, only to close in contrast. Bpm bank loses 1,07%, while Bper it appreciates by 0,11%.
It's in red Azimuth, -1,1%, which kicked into reverse gear in the afternoon after February collection data, with the numbers feeling the impact of the Kennedy Capital Management acquisition.
The insurers hold: Unipol +0,91%; Generali + 0,03%.
It is appreciated Moncler, +1,06%, best blue chip of the day, despite a general weakness in European luxury (Lvmh -1,03% in Paris), after China showed a decline in exports and imports in the period between January and February, highlighting continued weakness in demand for Chinese goods.
Fine Tenaris + 0,52% Banca Mediolanum + 0,11% Terna + 0,06%.
Stable bond in Europe
European bonds have remained relatively stable, even if the spread between the Italian and German ten-year period, it widened slightly compared to yesterday to 177 basis points (+1,53%). However, the yields showed little change, indicated respectively at +4,44% and +2,67%.
