OPEC+ has betrayed the hopes of the markets (and of the White House) by limiting the increase in production in November to only 400 barrels, as agreed in the summer. The price of crude oil has shot up. This morning, US crude, the WTI, traded at 77,83 dollars a barrel, the highest since 2014. Brent rose to 81,30 dollars, a record since 2018. But it's not just oil. Natural gas and coal continue to rise, dragging the Bloomberg Commodity Spot index to a new record.
The pressure on energy prices and supplies is likely to be the detonator of the many critical issues that have accumulated in recent months, starting with the inflation syndrome. Even if the prices of T-bonds remain under control, the technological stocks, the most sensitive to the increase in rates, have suffered a real beating: the Nasdaq has lost 2,1%. The Nyse Fang index, where only the biggest names on the stock market are found, closed down 3%, at 6.814 points: having lost about 10% from its all-time highs at the beginning of September, the index entered the correction area. Amazon lost all 2021 earnings; Microsoft, Apple and Alphabet lose more than 2%. It fared worse at Facebook, which lost 5% in the day they went its main platforms, from Instagram to Whatsapp, are out of order.
AFTER EVERGRANDE, TWO OTHER REAL ESTATE COMPANIES AT RISK
An air of correction also on the Asian stock exchanges. The Asia Pacific index falls by 1,3%. Tokyo's Nikkei and Seoul's Kospi remain down, the former down 2% and the latter down 1,7%. Stock markets in Australia and India also fell.
Evidence of recovery from the lows in Hong Kong, slightly up in the final stages after a session in the red. While awaiting news on Evergrande, the alarm is growing on other real estate properties: Fitch announces that two other market giants, Sinic and Fantasia Holding, have not paid interest.
The confrontation between the superpowers heats up. The Chinese Air Force has sent 36 fighters and another 12 aircraft equipped with atomic weapons to the skies of Taiwan in response to military maneuvers by the US and allies. Washington is preparing to denounce Beijing for not respecting the agreements signed with Donald Trump which provided for purchases of American raw materials.
The euro dollar weakens: after yesterday's appreciation, the cross is at 1,159. This morning the Wall Street Journal writes that in Congress the Democrats are discussing the possibility of shortening the duration, and therefore also the amount of expenditure, of their 3.500 billion dollar global welfare plan.
DRAGHI REOPENS THE TAX REFORM DOSSIER
In Italy, with the administrative elections closed, Mario Draghi has already left: today in the early afternoon the government control room is held which must discuss the tax reform and the very delicate revision of the land register, following the Council of Ministers. The summons reached the interested parties a few minutes after the polls closed,
It is the signal of a return to work after the distraction of the electoral campaign. The exams are knocking on the door and not everyone has done their homework: all the projects, 61 in all, presented by the Sicily region as part of the Next Generation Eu plan have been rejected.
DE GUINDOS (ECB): INFLATION ALSO HAS STRUCTURAL ASPECTS
Europe opened its doors under pressure from the Chinese real estate crisis. The Sentix investor sentiment index, which fell more than expected, did not help the mood. I don't have time to catch my breath and here is the disturbing message from Luis De Guindos. The vice president of the ECB underlined that "the increase in inflation reflects not only the base effects, but includes a component that will have a more structural impact", thus admitting that the cost of living may not be a transitory phenomenon. Finally, less than two hours after closing, the cold shower from OPEC+ arrived. In short, there are plenty of reasons to explain a difficult start to the week.
LISTS IN RED. THE WORST IS AMSTERDAM
The EuroStoxx 50 index fell by 0,9% in the final session. Piazza Affari leaves 0,60% on the ground at 25.460 points. The other price lists are also in red: Frankfurt -0,8%, Paris -0,61%, Madrid -0,09%, London -0,24%. The worst stock exchange is Amsterdam (-1,24%), the most sensitive to the performance of tech stocks. Asml Holding leaves 3,5% on the ground. Also in the red was the German Infineon (-3,3%).
BTP YIELDS RISE, SPREAD STABLE
The climate of general aversion to risk continues to weigh on the BTP, weak in the end even if above the lows of the session, in a market that looks apprehensively at the trend of inflation. The increase in US T-bonds under pressure on the Nasdaq weighs heavily.
At 16 pm, on the Refinitiv platform, the yield of the 0,835-year BTP is trading at 0,820% from 104% at the final on Friday. The yield differential between Italy and Germany is stable at XNUMX basis points. The yield curve on the ten/two-year stretch stiffens, particularly evident on the ten/two-year stretch.
UNICREDIT: POSSIBLE REOPENING OF THE GREEN BOND
Not helping market rumors according to which, writes Ifr, the lack of regular primary placements this week could offer the Treasury a "potential window". Unicredit speaks of the possible reopening via syndicate of the BTP green 4/2045 launched in March, without excluding the hypothesis of a new issue in dollars or a buyback.
OIL AND LEONARDO HIGHLIGHTS AT PIAZZA AFFARI
Oil in dust In Piazza Affari with crude oil prices sharply rising after the OPEC+ meeting. Saipem rises by more than 3%, Eni by 1,5%. Tenaris +2,9%.
The new rumors about the IPO of DRS in the autumn on Wall Street launch Leonardo, which rises by 1,57%. A2A (+1,16%) and Moncler (+1,14%) were positive. Telecom also rebounds (+1,5%) after a series of declines. The list of positive headlines basically stops here.
STM AND CAR SECURITIES SUFFER
Red sign for Stm (-3%), in the wake of the declines in the technology sector. The fear of a cut in silicon production in China also weighs heavily. Nexi -2,64%.
The auto sector fell, with the sole exception of Cnh (+1,5%), recovering from Friday's heavy losses.
Stellantis -0,6% in the aftermath of the data on car registrations in September which showed a drop of 32,7% for the entire sector in Italy and 41,6% for the Stellantis group. Brembo loses 2,2%, Pirelli 1,3%.
INTERPUMP -2,5%, BUT PROMOTED BY ANALYST
Letter also on other industrialists: Prysmian -2,5%. Interpump is also down (-2,5%), but analysts are pleased with the closing of the acquisition from the Danfoss group of the White Drive Motors & Steering business units (plants in the USA, Germany and Poland).
THE TAKEOVER OFFER FOR CATTOLICA IS UNDERWAY. SPAWN THEM -0,2%
The banks are bad, starting with Banco Bpm (-1,33%). Generali records a small loss, -0,19%, on the day of the start of the voluntary public purchase offer on Cattolica Assicurazioni (+0,21%). Amplifon, lost 0,86% after a morning rally and an acquisition in Australia. Weak Diasorin (-1,88%).
DUTCH MEDIASET WILL BE CALLED MFE
Mediaset -0,48%. The board of directors proposed to the shareholders' meeting, scheduled for 25 November, the change of the company name to Mfe-Mediaforeurope NV and the introduction of a dual category shareholding structure.
SAFILO: THE CEO SOLD BEFORE FERRAGNI ARRIVAL
Safilo's setback should be noted: -2,5% to 1,434 euros, the lowest since July. The stock, which continues to record a remarkable performance since the beginning of the year (+80%), has been down for three weeks. Sales jumped to around 2 euros, when it became known that the managing director, Angelo Trocchia, sold shares for around 78 thousand euros on the same day as the announcement of the eyewear brand's collaboration with Chiara Ferragni. At the end of July, Safilo resolved to increase the share capital against payment for a maximum total amount of 135 million euros, an operation to be completed within the year.
ERG GOES SHOPPING IN WIND POWER
Erg was in evidence (+1,93%) after the group announced the acquisition of 152.4 MW of wind and solar capacity in France and Germany. Jonix is in positive territory on the Aim (+0,56%): the manufacturer of air conditioners has received a new order of 1,98 million euros for the supply of MiniMate devices by Rheinmetall.
