Political tensions are rising again and Asian markets, stressed by new negative indications on the Chinese economy, reopen their doors in the red. The propensity for risk falls, the appeal of bonds rises again. And yields go down.
In the weekend the US ambassador in Beijing, Terry Branstad, has been summoned to the Foreign Ministry: the Chinese authorities have protested the arrest in Canada of Huawei vice president Meng Whanzou.
INFLATION SLOWS DOWN IN BEIJING, TOKYO'S GDP FALLS
The data coming from the economy are negative: a Inflation in China cooled down in November, to +2,2% from +2,5% in October. The growth in producer prices was also below expectations. Exports are also holding back: +5,4% against +15,6% in October.
The CSI 300 index of the Shanghai and Shenzhen stock markets lost 1,2%. Hong Kong and the Korean Kospi were also down, both -1,4%. The Chinese currency lost value, to 6,89, while the yield on China's 3,25-year bond fell to its lowest level in the last year and a half at XNUMX%.
Tokyo also loses hits (-2%). Under the pressure of technology (-2,4%). The final GDP figures for the third quarter were revised downwards: -2,5% (-1,9% the first estimate). Australia also down (-2,1%).
NEVER LIKEÌ HIGH SINCE 2014 THE T-BOND
The slowdown in the price lists favors the race for bonds and, consequently, the drop in yield. In China, the 3,25-year bond traded this morning at 18%, at its lowest in 2,84 months. The Treasury Note of the United States, with a ten-year maturity, trades at a yield of 2019%, the lowest in the last four months. Tonight Goldman Sachs released a report in which the possibility of two rate hikes in the United States in XNUMX is being considered: the consensus, until a few weeks ago, expected at least three. On Friday, James Bullard, chairman of the St. Louis Federal Reserve, said the rate hike expected in December could be delayed into January.
OIL RISES TO 62,5 DOLLARS
Brent oil rose, traded on Asian markets at 62,5 dollars a barrel: +0,5%. On Friday, following the 1,2 million bpd deal reached between OPEC and Russia, North Sea crude gained nearly 3%.
The euro appreciated this morning at 1,143 against the dollar.
BREXIT, TOMORROW IS D-DAY
The markets are coming off a mixed week: the S&P 500 index lost 4,6% (-1,5% from the beginning of the year). Frankfurt's Dax dropped 3,9%. Better Piazza Affari: -2%.
Numerous high-voltage political deadlines. The most important appointment concerns the Parliament of Westminster, theater of the decisive vote of the vote on the agreement reached between Brussels and Great Britain for managing the country's exit from the European Union. On the eve of the forecast is for a rejection that could pave the way for a Norwegian-style agreement (creation of an economic free trade area) or for a second referendum.
THE ITALIAN MANEUVER ARRIVES IN THE SENATE
The Budget Law arrives in the Senate, where the changes announced by the Government are expected to meet the demands of Europe. A majority meeting will be held today to define the cuts to basic income and 100 to meet the requests of the EU Commission.
The last meeting of 2019 of the management of the European Central Bank will be held in Frankfurt on Thursday, which in all probability will not touch rates but will update the forecasts on growth in the Eurozone. Even more important, albeit obvious, is the announcement of the end of the purchases of securities in the context of Quantitative Easing, even if the reinvestment of interest on securities already issued will continue. But attention is focused on the renewal of long-term refinancing operations (TLTRO), so important for Italian banks.
BOT AUCTION ON THE EVE OF THE FRANKFURT REUNION
On the eve, Wednesday 12, the Treasury will offer 5,5 billion euros on the market in the last offer of the year of 12-month Treasuries.
October industrial production data will be released today.
The US rate hike expected in December could be postponed to January. This was said on Friday by James Bullard, president of the St. Louis Federal Reserve who in 2019 will be a voting member of the Federal Open Market Committee, the monetary policy arm of the US central bank. The board will meet on 18 and 19 December next. Inflation data will be out this week
GOOGLE AT BARRIER IN USA FOR CHINESE RELATIONS
Tomorrow the CEO of Google, Sundar Pichai will appear before the US Congress to answer the accusation of having developed a censored search engine for China and having canceled some results in the US for political reasons.
BANCO BPM BOD TODAY, ACCOUNTS FOR INDITEX COMING SOON
In Piazza Affari the spotlights turned on today on Banco Bpm. This afternoon the extraordinary board of Banco Bpm will be held with the agenda, among other things, of the closure of the Ace project, the maxi sale of around 8 billion in non-performing loans.
Among the corporate appointments of the week to follow the publication of the quarterly accounts of Inditex, the clothing retail giant.
