Markets retreated today in Europe, following yesterday's sell-off in New York, due to a Fed that turned out to be more hawkish than expected. The record inflation seen in Germany in 2021, not to mention Omicron, which is putting pressure on the systems health and forcing governments to take measures, even if it induces a less serious form of disease, but not "mild", as specified by the WHO.
The finish is in deep red, although higher than the sitting lows, for Milano -1,8%, which returns to 27.655 points; Frankfurt -1,4%; Paris -1,72%; Amsterdam -1,85%. Better London -0,92% and Madrid -0,1%.
The start is also weak on Wall Street, after yesterday's collapse following the publication of the minutes of the last meeting of the US central bank. However, the New York Stock Exchange is currently showing a recovery attempt on the Nasdaq. The heavy accusations by US President Joe Biden against former President Donald Trump do not seem to affect trade commemoration of the assault on Capitol Hill on January 6, 2021. "It was an armed insurrection - says Biden - and Donald Trump tried to overturn free elections, to subvert the constitution and to stop a peaceful transfer of power through a group of thugs, the whole world saw with his eyes".
While equities move away from the recent highs, achieved in a crackling start to 2022, sales on government bonds continue and rates rise.
The yield on the 10-year Treasury is around 1,735% and in the euro area the 0,11-year Bund rises to -1,27%, while the Btp with the same duration marks +XNUMX%, with a spread which grows to 138 basis points (+1,24%).
FED WORRIED ABOUT STRIKING INFLATION, PRICES RACE IN GERMANY
Minutes of the FOMC's latest meeting, released last night, show governors are concerned about the pace of price hikes which could last longer than expected, coupled with global supply bottlenecks. Bankers then discussed stepping up the pace of a rate hike and to cut the balance sheet faster, after an unprecedented expansion - which occurred during the pandemic - which brought the value of assets held to 8.800 trillion dollars. The forecast of three interventions on the cost of money during 2022 has therefore emerged, but analysts today do not exclude that there will be four and starting from March, instead of from May.
The climate is overheated, at least in Europe, where the ECB has shown itself to be very cautious on interest rates up to now, and the inflation figure in Germany also contributes, which in 2021 reached 3,1%, the highest for almost thirty years. years, according to what was announced by the German Federal Statistical Office. In December the increase was +0,5% on a monthly basis, +5,3% on an annual basis (from +5,2% in November). These are increases higher than the estimates, set at +0,3% on a monthly basis and +5,1% on a year-on-year basis.
IN THE BUSINESS SQUARE THE SPOTLIGHT IS ON CARIGE +4,58%
In Piazza Affari, where the main price list is almost all in red, with the exception of Understanding + 0,62% Saipem +0,52% and Tenaris +0,02%, one wonders about banking risk. In particular, it returns to the spotlight Carige, +4,58%, after press rumors according to which Crédit Agricole and the Interbank Fund, the main shareholder of the Genoese bank, are reportedly discussing a possible offer. With two suitors in the field, Bper on one side and Crédit Agricole on the other, the speculative appeal of the stock therefore rises.
According to Il Messaggero, the French would like to acquire control of the bank for one euro, subject to a due diligence and a capital account payment by the Fund in Carige for around 700 million (a figure consistent with the statutory provisions envisaged by the interbank fund). "We recall - write the Equita analysts - that in the meantime Bper, after having underlined its willingness to discuss its offer jointly with the Fund, provided it is within an exclusive regime, is still awaiting a formal response".
On the Ftse Mib the losses are higher for Iveco, -6,82%, decidedly fluctuating in its first week of listing. Sales penalize too Moncler -4,12%; Exor -3,74%; Amplifon -3,32%; Ferrari -3,25%.
The damage is limited by the banks, which could benefit from a rate hike, and the ending is also mixed for oil stocks, with crude oil on the rise.
CRUDE IN THE RALLY, KAZAKHSTAN IS SCARY
The price goes up Petroleum, which also looks at the growing tensions in Kazakhstan, a member of OPEC+ and which currently produces 1,6 million barrels a day. For now, production in the country's three major oil fields is continuing, writes Reuters, but some contractors have gathered outside the most important Tengiz field in support of the ongoing protests.
In addition, crude oil production in Libya has slowed by more than 500.000 barrels per day due to maintenance work on pipelines. In this context, Brent and Wti futures show progress close to 2%.
Instead, it collapsesgold, weighed down by the strength of the dollar and the rise in government rates. The future of the precious metal, February 2022, loses more than 1,9% and trades around 1790 dollars an ounce.
EURO/DOLLAR LITTLE MOVED, BITCOIN COLLAPSES
On the currency market theeuro is little moved against the dollar, after recovering 1,13.
Bitcoin retreats again, after yesterday's slide, after the Fed minutes triggered a flight from riskier assets and tech stocks.
The most famous cryptocurrency is currently losing more than 7% and is worth $42.785.
