European stock markets open the first session of the week in the red, squeezed amid worries about disappointing Chinese growth, raw material price increases and the decline in US industrial production in September.
Business Square it is in the black jersey and loses 0,83%, closing at 26.268 points, weighed down by the coupon detachment of some big caps which weighs on the index by 0,59%.
It is in particular about Banca Mediolanum (-7,36%), Unipol (-4,71%), Understanding (-3,24%), Generali (-2,05%). Out of the main basket, Bank Ifis (-4,29%)
Net of this ballast, the Milanese price list session would be better than those of Frankfurt -0,75% Paris -0,81% Madrid -0,66% London -0,41%. In Europe, luxury stocks suffer in particular, after China announced overnight that its GDP rose by 4,9% in the third quarter, against the +5,3% expected by experts. This is the slowest growth rate of the last year, due in large part to the energy shortage, bottlenecks in supply chains, uncertainties in the real estate market.
Overseas Wall Street, after a false start, appears to be recovering and the Nasdaq is up 0,4%. The data on industrial production disappointed investors, who had expected a rise of 0,2% and instead have to deal with a decline of 1,3%. To compensate for the worries, however, the good season of quarterly reports is pressing, which continues to the sound of earnings after the glittering debut of the big banks. So far, 41 S&P 500 members have reported results, and 80% of them are better than estimates. Based on these and forecasts for other companies, the third quarter of the year should close (according to FactSet) with profit growth of 30%, the best since 2010 for S&P 500 companies since 2010.
If stocks limp, bonds waver and yields rise both in the US and in the Eurozone.
On the Italian secondary market, the spread between 10-year BTPs and Bunds of equal duration is in line with Friday's closing, but the rate of the Italian bond goes to +0,9% (from +0,87%) and that of the Bund to - 0,15% (from -0,17%).
On the currency market the euro-dollar is stable around 1,16, while the bitcoin, which deals not far from 62 thousand dollars on the eve of an important institutional legitimation, which will not allow investors to buy the cryptocurrency directly, but which will in any case offer a basis for the sector industry. In fact, tomorrow the first ETF (passively managed investment fund) on bitcoin futures will make its debut at the NYSE. This was announced by ProShares, a company that obtained the green light from the US stock market authority, which in the last four years had rejected the launch of at least 10 ETFs.
Among the raw materials, the Petroleum, with Brent and WTI futures currently trading slightly lower, after running in the morning also dragging gas, given that Russia, apparently, will keep supplies to Europe limited in November.
Oil stocks are now rather neglected in Piazza Affari, where, on the other hand, financial stocks such as Bpm bank +2,11%; Bper +1,58%; General Bank +1,44%; Azimuth +1,1%. The focus is on banking stocks awaiting quarterly results and some industrial plans, while we look at the continuation of the consolidation process in the sector which could benefit from the possible extension until the first half of next year of the corporate merger incentives launched by the government .
In other sectors well Prysmian +1,28%, while stellantis loses 1,82%. The company has entered into a memorandum of understanding with LG Energy Solution for the creation of a joint venture aimed at the production of lithium-ion batteries in North America.
Finally, it made its debut on Borsa Italiana a new index: it is MiB® ESG (Environmental, Social and Governance) (-0,83%) dedicated to Italian blue-chip companies, designed to identify the large listed issuers that present the best ESG practices.
As stated on the website "the MIB® ESG is Euronext's second national ESG index, after the CAC40 ESG launched in March 2021. The index combines the measurement of economic performance with ESG assessments in line with the principles of the Global Compact of Nations Unite2. The composition is based on the analysis of ESG criteria by Vigeo Eiris (VE), a company of Moody's ESG Solutions, which evaluates the ESG performance of issuers.
The methodology provides for a ranking of the top 40 companies based on ESG criteria, selected from among the 60 most liquid Italian companies, excluding those involved in activities that are not compatible with ESG investments. Components are weighted by free float market capitalisation. The composition will be reviewed on a quarterly basis. The reviews will allow for inclusion of companies whose ESG performance has improved sufficiently." Intesa Sanpaolo is the share that has the greatest weight with a percentage of over 10%.
