Le European stock exchanges close in red, Wall Street moves downwards and government bond yields rise: these are the effects on US labor data markets in September, good, therefore suitable to support the Fed in a possible rate hike of 75 basis points also at the next meeting. Bets on central bank stocks move financial moods more than the atomic armageddon mentioned last night by President Joe Biden, to evoke the final showdown between good and evil, i.e. the threat of a possible nuclear epilogue between Russia and Ukraine . The Ukrainian premier, Volodymyr Zelensky, also contributed to reinforcing the catastrophic hypothesis, speaking at the European summit in Prague: “We are all on the verge of a nuclear disaster due to the capture of the Zaporizhzhia nuclear power plant by Russian troops”. On the other hand, Russian Foreign Minister Sergei Lavrov said that Ukraine could use various types of weapons of mass destruction, according to TASS reports.
In this gloomy atmosphere, the European price lists have changed direction during the exchanges. Business Square it closed down by 1,13% and stopped below the psychological threshold of 21 points (at 20.901). The losses are more massive ad Amsterdam -2,16%, penalized by sales in the high tech sector after the disappointing quarterly results of AMD and Samsung. In the rest of Europe Frankfurt loses 1,57%; Paris -1,17%; Madrid -0,96%; it is colourless London -0,08%.
The euro is little moved against dollar and moves just under 98 cents. The Petroleum it is traveling fast, supported by the announced OPEC+ cuts. Brent appreciates by 2,76% to 97,03 dollars a barrel; Texan crude rose more than 4% to 92,14 dollars a barrel.
Il gas price in the middle of the day it lost 5% to 166 euro MWh, while in Prague they tried to mediate in the search for a future agreement on the price of gas and Poland got angry with Germany, saying that the German energy plan will destroy the single market for EU.
Unemployment falls in the US and the odds of a hawkish Fed rise
The US economy created 263.000 nonfarm jobs in September. It's a number beyond expectations for some analysts and below estimates for others, but in any case suitable for consolidating the Fed in its intention to fight inflation even at the cost of an economic slowdown, especially as the employment picture appears reassuring. The unemployment rate in September it dropped to 3,5% from 3,7% in August. As a result, the Fed's interest rate futures prices now imply a 92% probability that the bank will raise its policy rate from 3%-3,25% to a range of 3,75%-4% on occasion. of the November 1-2 meeting. The probability before the job report was 85%.
While not specifying the size of the next moves, the president of the New York Fed, John Williams, confirmed that the US central bank must "raise rates further" and work to reduce inflation and rebalance economic activity in more sustainable way.
Bad T-Bonds; the spread rises to 250 basis points
The news weighs on T Bond, which show falling prices and rising yields and also has an impact on US big tech companies sensitive to US interest rates. So while the 3,88-year bond moves to the +XNUMX area, Apple, Alphabet, Amazon, Microsoft shares are sold.
The Italian secondary pays the price: lo spread between 10-year BTPs and Bunds with the same duration, it rises to 250 basis points (+3,13%) and rates rise: +4,69% for the Italian security; +2,19% for the German one.
Piazza Affari enclosed between the leap of Leonardo and the thud of Stm
The big picture is reflected in Business Square, whose main list is enclosed between the leap of Leonardo +3,11% and the thud of stm, -5,26%. The defense company, according to some investment houses, benefits from positive news for the sector such as the increase in defense budgets in Norway and the rumors related to the rapprochement between Germany and Saudi Arabia. The drop in Stm is part of the general alarm in the sector.
Oil stocks are mixed: they go up Tenaris +1,32% ed Eni +0,94, goes down Saipem -0,84%.
At the top of the list Campari +1,16%. The banks close a volatile session: in the end they are in fractional progress Bper +0,66%; Bpm bank +0,57%; Unicredit + 0,39%. Ps rises by 1,65%, at the end of a week in swing.
At the bottom of the list Inwit -3,04%, on the day in which the board of directors appointed Diego Galli general manager and Oscar Cicchetti president within the new apical organizational structure of the company of the tlc towers. nexi -2,52%. Down the automotive stocks such as Classic Ferrari for sale -2,44% Cnh -2,44% Stellantis -1,87%. Lose altitude Moncler -2,5%.
