While looking at Gaza with relaxation, after the Israeli government has approved the ceasefire resolution, gold, silver, cryptocurrencies, and much of the S&P 500 index are taking a breather. Asian stocks are weak after US stocks closed slightly lower yesterday. European stocks remain hanging by a thread, with the France, under special surveillance, which has to solve serious political problems.
Wall Street takes a breather after the highs, but remains positive
IERI (Yesterday) Wall Street closed in negative territory as investors, left without economic data due to the government shutdown in its ninth day, nor any catalysts to indicate the direction, took the opportunity to consolidate the results ahead of the season of the third quarter data which will start next week. The US Senate rejected, for the seventh time, the bill approved by the Chamber to maintain government funding until November 21
The S&P 500 and the Nasdaq have moved slightly away from the all-time highs reached yesterday, while the Dow Jones closed with the deepest percentage decline: Dow closed -0,52%, S&P 500 -0,28%, Nasdaq -0,08% as third-quarter corporate earnings season begins on Wall Street next week.
However, analysts are mostly optimistic about the future trends: Hedge funds are betting on a dollar rally through the end of the year. Wall Street celebrated three years of gains on Sunday, a period that has historically paved the way for further gains. JPMorgan analysts forecast strong tech earnings in the third quarter. Instead, according to LSEG data, analysts expect the entire S&P 500 index to grow 8,8% in the July-September period, lower than the 13,8% growth in the second quarter and the 9,1% annual growth in the year-ago quarter. On Tuesday of next week, JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo They will be the first to publish quarterly results.
The solid expectations of the operators also help the quotations easing of monetary policy by the Federal Reserve of meeting of October 29, with federal funds futures quoting a 94,1% probability of a 25 basis point rate cut, according to CME Group's FedWatch tool.
Japan in sharp reverse: Sanae Takaichi uses the same format as Trump
The MSCI Asia-Pacific index of stocks outside Japan fluctuated between gains and losses, later declining 0,2%. In Japan, the stock index Nikkei fell by 0,8%: a significant reverse gear after strong gains this week, including Thursday, when it reached an all-time high at the close. Attention in Japan is on Sanae Takaichi soon to become prime minister who, following the Trump's format, stated that the central bank must make any decision in line with the government's objectives after last year calling the Bank of Japan "stupid" for raising interest rates. If anything, the aspirations of the "Iron Lady," as she has already been nicknamed, to lower interest rates as well as increase public spending, could be curbed by the strong weakness of the yen and the hints of rising inflation. According to data released today, wholesale prices rose 2,7% in the year to September. Finance Minister Katsunobu Kato expressed concern today about "rapid and unilateral movements in the foreign exchange market" that have pushed the currency down 3,5% since Takaichi's election last weekend, to 153 against the dollar, the yen's lowest level in eight months. The Japanese currency is set to close the week down 3,6% against the dollar: one of the worst weekly performances in a year. The Bank of Japan will meet on October 30.
The biggest drop in Asia was seen on the stock exchange Hong Kong (-1,1%), penalized by investors' growing concerns about the artificial intelligence boom, and accumulated a 3,1% drop over the week. In particular, the search engine giant Baidu electric vehicle maker loses 3,2% Li car loses 3,3%, Alibaba Group Holding is at -2,2%, JD.com -1,9%. The gold producer Zijin Mining Group records a decrease of 4,5%.
Chinese stocks, however, fell after Beijing on Thursday tightened controls on rare earth exports, tightening restrictions on the sector ahead of talks between Presidents Trump and Xi Jinping. The CSI 300 index of stock markets Shanghai and Shenzhen is down 1,3%. Stocks of Chinese battery companies, such as CATL, are sharply declining.
The bag of Alone reopened after the holidays with a record increase, +1,4% with Samsung Electronics At a record high: Shares of South Korea's largest company have surged 76% this year, bringing its market capitalization to $391 billion.
Gold and silver take a breather. The dollar holds firm.
The is giving up ground, after interrupting a four-day positive streak until yesterday and after having crossed the $4.000 threshold for the first time. Spot gold is down 0,1% at $3.971,93 an ounce, whilesilver It was up 1% at $49,62, testing the $50 mark after breaking above it for the first time yesterday. On energy markets, Brent crude was little changed, up 0,1% at $65,27 a barrel.
The index of US dollar, The U.S. dollar's strength against a basket of six currencies held steady near a two-month high of 99,37. The yield on the benchmark 10-year U.S. Treasury note fell to 4,1384% from yesterday's U.S. close of 4,148%.
European stock markets saw a break-even opening. At the Milan Stock Exchange, eyes were on Unicredit, Ferrari, and Tenaris.
European stock markets are expected to open little changed, with the Eurostoxx 50 futures up 0,04%.
Azimuth – In September, net inflows reached €1,9 billion, of which €1,3 billion in assets under management (AuM).
banks The European Commission is ready to take action against Italy's "golden power" legislation as part of an initiative to remove obstacles that EU countries place on banking consolidation in Europe, four sources told Reuters.
Monte dei Paschi Bank, Mediobanca The Siena-based bank intends to complete the merger with Mediobanca as quickly as possible. MPS CEO Luigi Lovaglio stated this during a parliamentary hearing.
Bfor bank The ECB has revised the bank's SREP requirements following its acquisition of Popolare Sondrio. The CET1 ratio has been raised to 9,40% from 9,32%. The company announced this in a statement, emphasizing that it significantly exceeds the minimum requirements.
Classic Ferrari for sale – On capital market day yesterday, the stock closed down 15,4%. The new long-term targets disappointed market expectations. Oddo cut the target price to €430, from €470 previously, with an Outperform rating confirmed. Bernstein lowered the target price to $475, from $554 previously, with an Outperform rating confirmed.
Italgas – It has sold a series of assets in Italy to comply with antitrust regulations following the acquisition of 2i Rete Gas. The buyers are Ascopiave, Erogasmet, GP Infrastrutture, and a temporary consortium comprising Plures, Estra, and Centria. The total consideration amounts to €253,1 million. The company announced this in a statement.
Prysmian – Morgan Stanley raises its target price to 78 euros from 65 euros.
Tenaris – BNP Paribas has lowered its rating to Neutral from Outperform, raising the target to 17 euros, from 18,50 euros previously.
Unicredit – S&P raised the rating to 'A-' with a stable outlook.
Danieli – Berenberg raises target price to 55 euros from 44 euros.
Mfe-mediaforeurope – Michael Eifler and Simone Sole have joined the supervisory board of ProSiebenSat.1, replacing two PPF members who resigned following the completion of MFE's takeover bid.
