Weak Europe and volatile Wall Street: uncertainty about the pace at which the Fed will continue on the path of monetary tightening dominated financial markets today, while some quarterly results were disappointing.
Gas prices fall after the European agreement. Euro stable at 97 cents against the dollar.
Milan in the red on the day of Meloni's appointment, stable spread awaiting the S&P rating
Closing Business Square is down by 0,62% (21.567 basis points), on a historic day for Italy, with Giorgia Meloni who went up to the Quirinale in the afternoon, first woman to be tasked with forming a new government. The centre-right leader accepted the position and presented the list of ministers. Giancarlo Giorgetti is in Economics.
Weighing on the main Milanese index were profit-taking on the last day of the week and perhaps nervousness about the judgment on the sovereign debt that S&P will issue in the evening. In any case, the spread is stable (234 basis points), although the pressure on the government bonds of the bloc has not eased and returns rise: +4,77% (from 4,72) for the ten-year benchmark Btp and +2,43% (from 2,4) for the German counterpart. The hands of the clock, for the BTP, have gone back about ten years.
The sales also affected British government bonds, after the farewell of Liz Truss and the return to the field, with aspirations as prime minister, of Boris Johnson. It weakens there GBP and the FTSE 100, the main index of the London Stock Exchange, gained 0,47%. S&P will also review the rating of the UK tonight.
In the rest of Europe it is flat Amsterdam, and Paris drops 0,85%, weighed down by sales on luxury stocks, after the disappointing quarterly Kering (-3,27%) seen yesterday. On the cac 40 it also retreats Vivendi (-3,35%), main shareholder of Telecom (+0,21% in Milan) with an increase in quarterly revenues, but a slowdown of its Canal+ pay-TV unit.
Madrid lose 1,1%, Frankfurt -0,29%. Between the quarterly reports of the day Adidas -9,04%, which cut its full-year forecast, citing more fragile demand.
High Volatility Wall Street
Overseas, Wall Street finds no peace and has changed sign several times, in the hope that the Fed will take its foot off the accelerator in December. The emotional storm behind these mood swings would in fact be due to an article by Wall Street Journal, according to which the opinion is beginning to circulate among Fed bankers that it is time to slow down the pace of the tightening so as not to cause too much damage to the economy. The discussion will be opened at the next meeting on November 75st and XNUMXnd, when in any case the fourth consecutive increase of XNUMX basis points should be decided to try to curb inflation.
The sentiment is also shaken by some quarterly reports, such as that of Snap which lost more than 30% after announcing a slowdown in revenue growth in the third quarter of the year, without providing any guidance. They go down American Express 5,1% e Verizon 4,6%, despite higher-than-expected quarterly results. Tesla is stable, while Twitter is in red, following various press rumors according to which Musk will send most of the platform's employees home as soon as he becomes its owner, while for Bloomberg the entrepreneur would be in the White House's sights for his tweets on peace proposals between Kiev and Fly.
New York stocks also suffer from competition from T Bond, whose yields continue to rise. The 4,3-year start-up reached 2008%, reaching its highest level since XNUMX.
Gas down after the European agreement
In the energy sector, the European agreement to keep prices down was felt on gas, dropped again below 120 euro MWh up to 110 euro with a two-digit percentage thud.
Il Petroleum little moved: Brent rose by 0,3% to 92,67 dollars a barrel.
Sul currency market the yen is in its tenth week of decline against the dollar and has slipped even beyond 151, with the Japanese core consumer inflation rate reaching 3% in September, its highest in eight years while the Japanese Central Bank is now almost the only major central bank to maintain ultra-accommodative policy.
Piazza Affari does well for Leonardo and financial stocks, bad for luxury
Financials dominate the FTSE Mib, together with Leonardo +2,53%, share favored by rumors of possible supplies of military aircraft from Italy to Poland.
At the top of the list there are General Bank +2,45%; Unicredit + 1,4 %; Finecobank +1,38%; Bper + 1,34%.
Saipem, +0,96%, further rounds off yesterday's gains following the maxi contract in Qatar.
Instead, the trend is reversed Moncler -2,94%, after the positive performance on the eve. Luxury is weakening in line with its French colleagues.
They also retreat Inwit -2,84%; nexi -2,82%; Amplifon -2,6%.
The automotive industry did badly in Europe and also in Milan: Pirelli loses 1,92%.
Weakness for utilities: Italgas -1,94%; Snam -1,91%.
Out of the main basket it stands out Antares Vision, +13,2%, following press rumors about a possible upcoming takeover bid aimed at the delisting of the stock. In a note, the company specified that "to date no decision has been taken regarding any operation".
The action of Ps on the other hand, it falls below the threshold of 2 euro (-0,95%) and the rights to increase the capital also decrease (-18,06%).
