Markets hanging from the ECB. Consumer price data released today, which marked the Eurozone's entry into deflation for the first time in five years, prompted traders to bet on an imminent quantitative easing intervention by the ECB. On an overall volatile day, the main European Stock Exchanges managed to close in positive territory even if slowing towards the end of the session: Paris +0,72%, London +0,8%, Frankfurt +0,5%, Madrid +0,21%. Milan, on the other hand, did not make it, which slipped into the red right at the end after a volatile day but in terms of purchases: the FtseMib lost 0,11% weighed down by banks and by securities more linked to oil.
Athens closed down by 1,46% while the 10-year bond rate is back above 10%. The ballet of hypotheses and denials on Grexit continues. According to the tabloid Bild, which cites government sources, Germany is working on concrete strategies to react to the possibility of Greece leaving the euro. If the Greek elections were won by Tsipras and the path of reforms were interrupted, we read, the remaining XNUMX billion euros of planned aid would not be paid to Athens. Angela Merkel's spokesman, Steffen Seibert, reiterated today at the press conference that Berlin wants to strengthen and stabilize the Eurozone with all the leaders and also with Athens.
For now, Greece is still able to access the market: today the country has placed six-monthly bonds for 1,625 billion euros with rates rising to 2,30% from the previous 2,15%. Demand is slowing down with the coverage ratio going from 1,81 to 1,58.
Analysts are counting down the days to Draghi's announcement on Qe after Eurostat today indicated a 0,2% year-on-year drop in prices (flash estimate). In November, inflation had marked +0,3%. Weighing the collapse of energy prices (-6,3% compared to -2,6% in November), stable food, alcohol and tobacco. In November, inflation had marked +0,3%. Weighing the collapse of energy prices (-6,3% compared to -2,6% in November), stable food, alcohol and tobacco. Data that mark the Eurozone's entry into deflation after five years.
Europe strengthened its gains on the back of the positive opening from Wall Street. At the close of the Old Continent, the Dow Jones rose by 0,96%, the S&P500 by 0,7% and the Nasdaq by 0,76%.
In terms of macro data, the US trade balance deficit beat expectations, falling by 7,7% in November to 39 billion dollars from 43,3 in October. Analysts were expecting a drop to 42 billion. Employment in the private sector has also done better than the estimates: the Adp figure it beat firm expectations at 225 seats, rising to 241 seats. Now let's look at the overall employment data expected for Friday.
The euro closed down against the dollar at 1,1821 (-0,58%), the lowest since 2006. Wti oil rose by 1,04% to 48,42%. In the morning, Brent broke below the threshold of 50 dollars a barrel, a level not seen since April 2006.
Luxury rises in Piazza Affari thanks to the recovering dollar: Ferragamo +2,68%, Luxottica +2,03%. Going against the trend Yoox -5,19%, worst stock of the Ftse Mib. At the bottom of the basket of blue chips are also oil-linked securities Saipem -2,47% and Tenaris -1,68%. Eni instead rises by 0,52%. Down also the Popular: Bper -2,25%, Ubi Banca -2,08%, Bpm -0,56%. Unicredit -0,98%, Intesa -1,23%, Mps -0,15%. Highlights Buzzi Unicem +3,08%, Atlantia +2,39%, Stm +2,06%.
