Session in rally today for the European financial markets which close in clear progress. To give sprint were new rumors about reopening in China (which favored the surge in the Hong Kong and Shanghai stock exchanges) and a chiaroscuro report on work in the US which, at least for a few hours, has rekindled hope of a more cautious Fed in the future, after the fourth rate hike of 75 basis points launched on Wednesday. Based on this initial reading the start of Wall Street he was exuberant, but at the moment the US stock market is in a big slowdown and is moving slightly lower.
Europe rallies, the dollar retreats, raw materials are on the rise
Business Square it rises by 2,54%, exceeding the psychological threshold of 23 points (23.282). A shower of shopping has also flowed up Paris + 2,77% Frankfurt + 2,53% London + 2,28% Amsterdam + 1,62% Madrid + 1%.
It deflates the dollar, after yesterday's surge. L'euro recovers over 1,6% and trades around 0,99. Commodities are flying, selling in dollars and seeing the downsizing of the greenback as an opportunity for more business. Brent rose by 3,35%, to 97,86 dollars a barrel; Texan crude grew by 3,81%, to 91,53 dollars a barrel.
News from the Celestial Empire gasano le raw material starting with copper, which marks an increase of 6,5% and silver in its wake. Well gold.
After an uphill start, he put the brakes on instead gas price in Amsterdam which, at the end of the morning, was trading down by 3,17% to 121,47 euros per MWh.
Unemployment rises in the US and the Bull takes advantage of it
China e Use contributed to today's rally.
Let's start with the most recent news: the US Department of Labor report on nonfarm payrolls shows 261.000 more, a higher than expected number. But also there unemployment it rose to 3,7% from 3,5% in September, suggesting an easing in labor market conditions that could give the Fed a chance to move towards more contained rate hikes next month.
The exuberance of the Asian markets also contributed to supporting risk appetite in Europe (Hong Kong +5,36%) in the wake of new rumors relating to a progressive change of anti-Covid policy by the Dragon. News that makes the heart of many titles and commodities beat to the rhythm of their credibility. It is the third time in the space of about ten days that Chinese and Hong Kong shares have risen on the basis of unconfirmed reports and news, but today also a partial endorsement from some former Chinese officials would have arrived.
The Bull is also supported by Bloomberg's indiscretion according to which there will be an early conclusion of the checks by US inspectors on Chinese companies listed on Wall Street.
The big names are snapped up, also pushed by Kering
Among the stocks that have benefited most from the news from China are those of luxury, who rebounded big today after losses the day before. In Paris they finish at the top lvmh + 5,75% Hermes + 3,71 % Kering (Gucci) +7,07%. The latter would have helped to tone up the sector after the Wall Street Journal wrote that the company that owns the Gucci brand would be in an advanced stage of discussions for the purchase of another famous fashion brand such as that of Tom Ford.
Among the sports brands Adidas went into orbit with a 21,38% increase in Frankfurt on rumors of a change of CEO.
Piazza Affari celebrates many better-than-expected quarterly reports
World news, but also better-than-expected quarterly reports underlie the excellent performance of the day by Piazza Affari.
It stands at the top of the list Pirelli, with a leap of 11%, after the improvement of the outlook on revenues 2022 and 9 months in great growth.
Luxury is highlighted in Milan above all with Moncler +7,41%, fluctuating in this period with the contradictory notes from China.
To astound once again positively for revenues and forecasts is Understanding, which earns 4,84%. The bank closes the third quarter with a net profit above expectations and expects a net result for the whole of 2022 in the high end of the range previously indicated, also thanks to the reduction of the exposure to Russia.
“We have achieved the best nine months since 2008 – observes the CEO Charles Messina -. Given the results obtained, we have decided to raise the profit guidance for this year to over 4 billion euros”. The BoD approved the distribution of an interim cash dividend on the 2022 results of 7,38 cents per share for a total amount of approximately 1,4 billion.
The banking sector appears well tuned overall, with the exception of Mount Paschi, which fell by 11,96% to 1,61 euros at the end of the 2,5 billion capital increase.
Powdered energy: Enel, +2,31%, which was negative following the downward revision of the Forecasts on 2022 net profit.
Tenaris +3,03%, with solid data and Ebitda above estimates. Profit and revenues, although clearly increasing compared to last year, have however slowed down compared to the previous three months.
In the oil sector it progresses Eni, +2,11%, but retreats Saipem -3,61%.
La quarterly does not support Leonardo, -7,73%, despite the fact that the accounts are in line with analysts' estimates and the guidance has improved. The confirmation of expectations probably triggered profit-taking, given that the stock has gained around 20% since the beginning of the year in the wake of the leap in defense shares globally.
Spreads down, rates up, Lagarde talks about a recession
The Italian secondary closes in green, but rates rise, with sales spread across all government bonds in the euro area.
Lo spread between the benchmark 10-year Btp and its German counterpart, it drops to 220 basis points (-3,62%), with yields of +4,45% and +2,25% respectively.
The words of the president of the ECB are heard on the fixed income of the block Christine Lagarde, who reaffirmed the priority of fighting inflation, despite the increased risk of recession in the euro area. “Even though recent GDP growth data surprised to the upside, the risk of a recession has increased,” Lagarde told a conference of the Estonian central bank. The slowdown "could be exacerbated by global monetary policy tightening", but "we cannot and will not allow high inflation to consolidate". Furthermore, “in December we will define the key principles to reduce the portfolio of bonds purchased”.
