Rates rising enough to beat inflation. The Fed has confirmed the new hawkish look. Indeed, Jerome Powell froze the markets when, to those who asked him if the Bank would raise the cost of borrowing in every meeting in 2022 (that is, more than four times), he replied: "I can only tell you that we will be humble and careful to follow the data". In short, the Fed this time wants to be faster and more severe than in the past: 3-4 hikes (or maybe more) in 2022, three more next year. An indication that froze Wall Street, evaporating the optimism that had marked the markets up to that moment (Europe in the lead). And the rain of sales this morning continues in Asia, waiting for a day full of corporate data: Deutsche Bank, EasyJet, JetBlue Airways, LVMH, Mastercard, McDonald's, Samsung Electronics, SAP and Visa. To close tonight with Apple.
The effects of the Fed's message have been felt. The Japanese stock market crashed overnight, down 3,2% in the final session. Hong Kong's Hang Seng (-2,6%) and Seoul's Kospi (-3%) also fell significantly. CSI 300 of the Shanghai and Shenzen price lists -1%. The Morgan Stanley Asia Pacific index falls to a 14-month low.
The S&P500 index future is down 1,5% this morning. Yesterday evening, following another session of breathtaking ups and downs, the Nasdaq (+0,02%) erased the strong initial gains; the Dow Jones is down 0,4%, S&P -0,15%.
It was a busy day for accounts. Tesla (-5% after the Stock Exchange) recorded revenues of almost 18 billion dollars in the fourth quarter, up 65%, and net profits of 2,3 billion (+760%). However, the company has signaled that problems in supply chains will continue in 2022.
GM yesterday announced the hiring of 8 technicians to be employed in the production of electric cars. Boeing (-4,8%) posted its first operating profit in three years, but had to book 5,5 billion in new expenses due to the 787 woes.
Microsoft climbed 2,8% on sharp rise in profits. Mattel (+4,3%) will return to produce licensed Walt Disney toys.
The 1,86-year T Bond weakened to 1,17% yield. The two-year is at 1,13% this morning, from 67% yesterday. The interest rate curve flattened rapidly: on the two-year-ten-year stretch, the spread fell to XNUMX basis points, the lowest in the last thirteen months.
The flight from risk is rewarding the dollar, which is up on almost all the reference currencies. The New Zealand dollar, the Indian rupee, the Norwegian krone and the South African rand fell sharply. Canada's rates will also increase in March, according to what emerged yesterday morning from the meeting of the central bank.
Euro down for the fourth consecutive day to 1,122, the lowest since November. Gold is not holding, down 0,3%, to 1.814 dollars, yesterday -1,5%. Bitcoin is down slightly, at $36.000. Brent and WTI oil, which rose to their highs for the period yesterday, returned to 86,5 dollars, down 0,7%.
The BTPs pay for the stalemate on the Quirinale
The uphill race for the Quirinale more than frictions on the international front are felt on the bond market. The spread between the Italian and German 147-year bonds increased: 2020 basis points, the highest level since September 1,41, with 30-year rates at +2,17%. The 2,11-year rate also rose to 2020% from XNUMX% yesterday, not far from the highs since July XNUMX.
Yields also rose on the primary for short-term BTPs and for those indexed to inflation. In detail, the Treasury issued the first tranche of the 2-year BTP expiring on 29/11/2023 for €3,75 billion against a request of €5,3 billion. The yield rose by 13 cents to -0,13%.
The eleventh tranche of the 5-year BTP-i maturing on 15/05/2026 was also placed: against requests for 1,250 billion, the amount issued was equal to 590,59 million while the yield stood at -1,18% .
Finally, the 36th tranche of the 30-year Bop-I expiring on 15/09/2041, assigned for 409,41 million against a total demand of 873,08 billion, achieved a gross yield of 0,04%. The auction regulation falls on the next 28 January. Today the Treasury offers 6 billion semi-annual Bots.
European stock exchanges charged yesterday
The wave of optimism on the European stock exchanges is partly linked to the release of some data on the US economy, starting with the sales of new homes (+12% in December), from which the portrait of a healthy economy emerges. But also to a more relaxed climate on the Ukrainian front. The virtual meeting between the big names in Italian industry and Vladimir Putin, held despite the contrary opinion of the Farnesina, does not create too much damage.
Piazza Affari (+2,27%, to 26.619 points) almost erased the effect of the start of a volatile week, shaken by the Russia-Ukraine crisis and by expectations on the Fed's choices. The Eurostoxx 600 index advanced by 2,1 .2020% in the best session since November 2,11. The other markets are also running: Paris +2,19%; Frankfurt +1,7%; Amsterdam +1,63%; Madrid +1,34%; London +XNUMX%.
Biontech gains 6,23% after announcing, with Pfizer, the start of a clinical study to test a version of the vaccine calibrated on the Omicron variant.
The stocks of the airlines are running: IaG +7,48%, Lufthansa + 5,8% awaiting the negotiation for Ita Airways.
Only 4 blue chips in red, the Exor stable dates back
There are only four Italian blue chips in red out of forty. The pink jersey belongs by right to the Agnelli team, after the losses of recent days: Stellantis gains 4,8%, Cnh Industrial rises by 4,3%, Exor +3,2%, Iveco +3,4%.
But the title of the day is undoubtedly Tod's (+14%), which closes the accounts for 2021 with a rebound in revenues of 38,7%, beating market expectations and interrupting a five-year cycle of falling sales. Della Valle's company takes flight in a day of redemption for the fourth capitalism of our house.
De'Longhi +7%. Equita raises its opinion, the note talks about the benefits, not counted well by the market, coming from the acquisitions.
Maire Tecnimont +5%, after the announcement of a 1,1 billion order in Russia.
Tesmec (+12%), Ovs (+4%), El.En (+5%), Autogrill (+5%) and Cy4gate (+5%) advance.
Corre Do Value (+2,8%) after the approval of the business plan to 2024. Positive comments from analysts. Kepler Cheuvreux confirmed the target price at 12 euros and reports that the growth rates of revenues and ebitda are higher than the estimates of the experts.
Oil companies also made a great recovery: Saipem +3,5%. Tenaris +4,3%, Eni +2,7%. Banks are solid: Unicredit +3,6% ahead of Intesa Sanpaolo (+3%). The race is led by Bper (+4,6%).
Telecom: yes from the Board of Directors on the Labriola floor
At the end of a six-hour board meeting, the Telecom Italia board unanimously approves the new industrial plan, giving a mandate to the managing director Pietro Labriola to explore all the operations that can create value, starting with the spin-off of the network from telephone services.
Few and in no particular order are the stocks in negative territory: Recordati -0,9% and it's the black jersey on Wednesday, Pirelli - 0,6%.
