The European lists close the week on a high note, thanks to quarterly reports such as that of L'Oreal (+5,081% in Paris) and to the fact that Evergrande (+4,26% on the Hong Kong stock exchange) avoids bankruptcy, at least for now, by paying interest on a US bond a few days before the expiry of the coupon.
However, the continental climate has worsened in the last few hours with the mixed start on Wall Street, where the Nasdaq is weighed down by Intel due to disappointing accounts and by Snap, which is paying for the drop in advertising sales due, according to the company, to the new settings for Apple's privacy. Twitter and Facebook also go down. After a positive start, DJs and the S&P 500 have now gone into the red, setting a new all-time high yesterday.
Business Square thus limiting progress to 0,18% and reaching 26.571 points. In the evening also arrives the opinion of S&P which confirms the BBB rating for Italy and raises the outlook to "positive" from "stable".
Gains and losses are equally spread across almost all sectors. Among the utilities it shines A2a +2,44%; in industry Cnh salt of 2,05%; in fashion Moncler +1,3% (on which Jefferies raised the target price to 57 from 55 euro) and Cucinelli, +1,08%, after the upward revision of the 2021 turnover guidance and the quarterly data published yesterday evening. Among the banks the most effervescent remains Bpm bank +1,48%. For the technological it is appreciated stm + 1,24%.
I'm down Inwit -0,93% Ferrari -0,7% Enel -0,64% Tenaris -0,56% Unicredit -0,41%.
In the rest of Europe the queen is Paris, +0,71%, showing gains for luxury stocks and the jump from the cosmetics giant. They appreciate each other Amsterdam +0,66%; Frankfurt +0,45%; London + 0,21%. Madrid loses 0,41%.
Markets in the euro area were not negatively influenced by the slowdown in economic activity in October and by the rise in commodity prices, which continue to raise many questions about inflation and its duration. The stage remains expansive and 50 is the line to watch, but the IHS Markit Flash Composite Purchasing Managers Index fell to a six-month low of 54,3 in October, versus 56,2 in September.
Manufacturing activity remains robust and the PMI for factory activity saw a very modest drop, to 58,5 from 58,6 in September. However, an index measuring output, part of the composite PMI, came in at 53,2 from 55,6, its lowest since June 2020.
The producer price index edged up to 72,3 from 70,4, the highest since IHS Markit began recording the figure in 2002.
Companies have been hiring at the fastest rate in over 14 years. The employment index advanced to 56,0 from 54,1.
In the United States too, the manufacturing PMI disappointed (59,2 against expectations of over 60) but that of services went better than expected (58,2 from 55 in September).
On the currency market the euro appears little moved and changes with the dollar around 1,163.
Government bond yields in the area are rising. The Italian ten-year bond closes at +0,96%, while the Bund with the same duration at -0,1% and the spread it widens to 106 basis points.
Inflation is also felt in Italy (+2,9% in September) on the "exceptional" push of energy prices but according to the Bank of Italy in the absence of 'push' from wages and production prices "it should not extend in the medium term".
The prices of Petroleum however, they remain close to multi-year highs, after the losses recorded in Asian trading hours. Brent futures moved up 0,23% to 84,81 dollars a barrel.
