Gray day for European price lists, unnerved by the negative performance of the manufacturing sector in the Eurozone and waiting for Fed Chairman Jerome Powell to clarify the choices of the US central bank in a few hours (a fourth rate hike of 75 basis points is expected today) and leave understand, perhaps, what he will want to do in the next meetings. Markets' recent rally was buoyed by expectations of a softer stance ahead, but buoyant US jobs are dampening hopes.
And then negative Wall Street in view of this important appointment with the banker.
Piazza Affari is the only one making timid progress
In the gloomy European financial landscape Business Square it is the only one that is saved from sales, +0,03%. They close down Amsterdam -0,9% Paris -0,81% Frankfurt -0,62% Madrid -0,35% London -0,5%.
Milan defended itself thanks to purchases of financial stocks such as Unipol + 2,36% Unicredit + 2,01, Bper +1,64%. Out of the main basket though Ps the capital increase returns below two euros (-2,84%)%. Furthermore, the two-day auction of unexercised rights closed today with a potential subscription of a further 112 million euro.
Well again Telecom, +1,54% which sails on the crest of the wave of a possible conquest by Cassa Depositi e Prestiti hypothesized by the market, now that the Meloni government has appointed Alessio Butti as undersecretary to the Prime Minister. The senator, former coordinator of Fratelli d'Italia for telecommunications strategies, in recent months had devised the so-called Minerva Project, a takeover bid by CDP on Tim and a simultaneous sale of retail assets, in order to avert a blockage by the Antitrust. Furthermore, according to Butti, "Open Fiber no longer has the credibility or ability to be the linchpin of the operation on the single network".
The focus of investors then remains on the quarterly. Ferrari loses 1,58%, after accounts better than expected and forecasts improving for the current and next year. The Prancing Horse closed the first 9 months of 2022 with growing results compared to the same period of 2021, even if the margins decreased slightly with the increase in prices due to inflation and the different, less favorable mix/price . The House of Maranello recorded a net profit of 718 million euros, up 16% compared to 619 million in the same period a year ago. Car deliveries increased by 21% to 9.894 units and revenues rose by 20% to 3,727 billion euros. Ebitda stood at 1,304 billion euros (+15%), with margin at 35%, down from 36,6% in 9 months 2021. Ebit at 929 million euros (+15%), with margin down to 24,9% from 26,2%.
Tomorrow he will present his Stellantis accounts (-0,42%).
The worst stock on the Ftse Mib is Prysmian, -3,73%, overwhelmed by the crash of the French competitor on the Paris Stock Exchange Nexans (-10,16%) sunk by the downgrade of Bank of America analysts. Down Saipem -2,47% nexi -1,98% and Amplifon -1,63%, penalized by the profit warning, the second in a year, announced by the Danish competitor Demant linked to the hearing and communication aids market.
Moody's: negative outlook on banks and zero growth for Italy in 2023
The banking sector did not weigh too much worsening outlook by Moody's, from stable to negative, on Italian, German, Czech, Hungarian, Polish and Slovakian banks. The prospects of a weakening of growth linked to the energy crisis, high inflation and rising interest rates would induce the deterioration. The rating agency also forecasts zero GDP growth for Italy in 2023 (+2,7% in 2022). Growth is being held back by the conflict in Ukraine and the resulting energy crisis, as well as high inflation.
Eurozone manufacturing suffers
Meanwhile, the manufacturing sector in the euro area is suffering, as can be seen from the final data of the PMIs for October which fell to the lowest since May 2020 and below the 50 threshold that separates expansion and contraction for the fourth consecutive month. Lmain index falls to 46,4 worsening from 48,4 in September. Among the most penalized countries are Germany (45,1) and Italy (46,5).
Spreads up, euro stable, oil rises
Waiting for Jerome Powell lo spread between ten-year Italian and German it rises to 216 basis points (+2,75%), with rates of 4,28% and 2,12% respectively.
The index of dollar appears stable and the euro-dollar exchange rate shows little movement, around 0,986.
Among the raw materials the Petroleum revives after the data on US inventories. Indeed, last week, oil inventories in the United States decreased much more than expected: -3,115 million barrels to 436,83 million units, against expectations for a fall of 0,2 million. According to data released by the Department of Energy, gasoline stocks decreased by 1,257 million barrels to 206,633 million barrels, against expectations for a -0,9 million.
Following the news, Texan crude began to move upwards and is currently up close to 2% above $90,20 a barrel. The Brent contract (January 2023) appreciates by 1,8% to 96,37 dollars a barrel.
