Also the ECB, in the footsteps of Fed, prepares to curb the rise in interest rates. The markets thus continue in the mini rally which makes the 2022 budget less bitter. Without too many illusions: the EU agreement on gas and oil is missing, the winter promises to be very harsh.
The European squares break new records
- The European Stock Exchanges, orphaned by Wall Street (today open only for half a day) welcomed the indications coming from the ECB minutes. All the price lists closed with a plus sign on new period tops.
- The future of the index Euro Stoxx 50 one hour after opening it is unchanged. The index should be able to confirm the violation of the strong resistance towards 3.900 points at the end of the week, projecting targets towards the historical highs towards 4.400 points. The global index Stoxx 600 (440,84) projected to a four-month high,
Milan +0,6%, the sale of Banca Generali vanishes
Business Square it appreciated by 0,61% behind Frankfurt, galvanized by the Ifo index; trust is returning among businesses across the Rhine.
The abrupt braking of General Bank -5,24%. The prospect of the sale to Mediobanca vanishes after the CEO of Generali, Philippe Donnet, has decided to renounce the purchase of the American Guggenheim, an operation that would have required the sacrifice of the sale of the asset management subsidiary.
Even the ECB opens at the end of the rate hikes
I ECB minutes they confirm their firm intention to fight inflation but open to "a pause". Says Isabel Schnabel, German member of the directorate: "The room to slow down the pace of rate adjustments remains limited, even if we are approaching the estimates of a neutral rate". The vice president De Guindos he said that inflation should have reached near peak levels, could consolidate positions in the coming months and should begin to decline around the middle of next year”. Next December 15, the ECB should limit itself to a 0,50% increase.
Btp/Bund, the race doesn't stop
Operators, perhaps exaggerating. they interpreted the signals from Frankfurt and the Fed as a turning point towards a softer stance. The Btp yield it fell to 3,65%, the lowest figure since August. The Waist German ten-year declines to 1,84%, the lowest since the beginning of October. The spread has reached 180 basis points, the lowest since April.
Covid is holding back the Chinese recovery, Korea unchanged
- The surge in infections from Covid in China partly spoils the weekly closing of Asian stock exchanges. They close in red Hong Kong -0,6% (week -2,5%). Better the CSI300 of the Shanghai and Shenzen lists +0,7%, -0,5% the provisional balance for the week.
- In China, infections are growing and the rush to hoard food is starting to create some problems in Beijing, where movement restrictions have been imposed in many districts. Despite the deteriorating health environment, the upside prospects for Chinese company shares remain very attractive, according to Jun Bei Liu, portfolio manager at Tribeca Investment Partners in New York. Over the next twelve months, things will get better. We will soon begin to see i Chinese price lists beat the others, as early as the middle of next year, he told Bloomberg TV.
- Il Nikkei in Tokyo is starting to close down by 0,3%, +1,3%. Kospi of Seoul unchanged, on parity also for the week. BSE Sensex of Mumbai on parity (+1% per week).
Wall Street, upward opening, the Brazilian stock market soars
I Wall Street futures anticipate a higher open. The US stock exchanges will close at 12 noon New York time for Black Friday, the shopping holiday which, according to forecasts, should mark only a modest 2% increase in Christmas purchase volumes.
Who partied yesterday was there Sao Paulo Stock Exchange +2,7% which, not surprisingly, has lengthened the pace with the debut of the seleçao at the World Cup in Qatar.
Gas and oil, no agreement on price ceilings
On the high seas, the European agreements to face the energy crisis. During the Extraordinary meeting of EU energy ministers an agreement has been reached on the Regulation on authorizations for renewables and on solidarity and gas purchases, but the texts will not be approved until an agreement is reached on the price cap which will be discussed on December 13th. The European gas yesterday it closed down by -4,5% at 123,8 euros per MWh.
Contrast the prices of the Petroleum: Brent at $85,70. The ambassadors of the 27 EU countries have not reached an agreement on the cap on Russian oil prices as foreseen by the G7.
THEOPEC+ it will meet on December 4th and should not decide to increase production, as suggested by some rumors.
Bitcoin flat at $16.400. Sam Bankman-Fried, the founder of FTX, has published one letter of apology addressed to employees. “I am deeply sorry for my mistakes. I will do everything I can to fix it even if it takes the rest of my life." Thus begins the message from the former managing director of Ftx, addressed to his employees defined by the thirty-year-old as his "family".
Erg takes the place of Atlantia in the Ftse Mib
- Piazza Affari loses another blue chip. The totalitarian voluntary takeover bid promoted by Schema Alfa on Atlantia has exceeded 90% of the issuer's share capital. It will therefore be possible to proceed to the delisted Schema Alfa reports from the company in a note, according to which the reopening of the offer, which started last November 21st, will end today at 17 pm. Schema Alfa "intends to implement" the delisting "as soon as possible in the following weeks".
- Will Erg the stock that will replace Atlantia in the main index.
- Monte Paschi Bank Fitch has raised its Long-Term Issuer Default Rating (Idr) to ”B+” from ”B” and its Viability Rating (Vr) to ”b+” from ”b”. Long-term prospects for the IDR are stable. The update reflects the strengthening of the bank's capitalization following a €2,5 billion capital injection completed in November.
- Azimuth: Sadif Inv. starts coverage with STRONG SELL and a target of 14,5 euros.
