Negative balance for the financial markets of the Old Continent. After an upward start, the main ones European stock exchanges they turn into negative territory, with the exception of Frankfurt. Investors' eyes are all focused on the inflation trend and on the moves of the central banks to cool the race in prices. L'inflation in the Eurozone was revised slightly downwards – to 10,6% year-on-year in October 2022 from a preliminary estimate of 10,7% – but this is the highest figure on record and well above the 2% target set by the BCE. The above-expected US retail sales reading boosted expectations for continued monetary policy tightening by the Fed did not help.
A Business Square, halfway through the session, the Ftse Mib decreased by 0,55%. Resists Frankfurt (+0,07%), thanks to the leap of Siemens (+6,5%) after publishing solid quarterly earnings. Contraction for Paris, which suffers a drop of 0,82% weighed down by the performance of the share of the industrial group Bouygues which suffers a drop of 4,8% after the publication of the accounts for the third quarter. Below parity too Amsterdam (-0,51%) And Madrid (-0,83%). London is also in the red, awaiting the presentation of the new budget by the British Finance Minister Jeremy Hunt, after the disastrous tax reform by Liz Truss.
Trade balance, Istat: in September Italy in the red for 6,454 billion
On the macroeconomic front, the numbers of the Italian trade balance. In September 2022, import prices grew by 0,1% on a monthly basis and by 20,3% on an annual basis (it was +21,5% in August).
In the first nine months of the year – the institute commented – the trade deficit exceeded 31 billion, conditioned by an energy deficit of over 85 billion; a negative contribution also comes from intermediate goods, with a deficit of almost 19 billion. It is the attenuating dynamics of the prices of energy products and intermediate goods that explain the slowdown in the trend growth of import prices.
Euro down slightly; oil is weak, gas is rising
THEeuro is slightly down on dollar this morning. The single currency is trading at 1,0374 on the greenback.
Weak session also for the Petroleum: American WTI for delivery in December loses 1,05% to 84,69 dollars, while January contracts on European Brent are down 0,86% to 92,06 dollars a barrel. As the gas traded on the TTF in Amsterdam: prices rise to 106,78 euros per megawatt hour.
Campari is racing in Milan, Leonardo and utilities are going downhill
A Business Square run Campari (+1,47%). Well too Saipem (+0,73%) who led the standings throughout the morning, e Azimuth (+0,7%). The shares of also rose Telecom Italy +0,62%%, after the numerous news that emerged in the last few hours: the resignation of the director Frank Cadoret and the words of CEO Labriola. Although work on network separation is continuing, in 2023 “Tim will still be a single company”.
Rain of sales for Leonardo (-3,77%). Also pulling down Piazza Affari are the utilities: Ivy (-1,1%), Tenaris (-1,46%), Snam (-0,96%), Italgas (-0,91%), A2a (-0,88%). Also in red Understanding St. Paul (-0,80%).
Spreads up slightly, 10-year BTPs down below 4%
The spread worsens, reaching 197 basis points (+7,21%), while the 10-year BTP has a yield of 3,96% and the 10-year Bund +1,99%.
