US inflation runs at record levels, the dollar strengthens and Wall Street moves in fractional decline, while European stocks close a moderately positive session, supported by the quarterly accounts of some companies. In particular Milano rises by 0,44%, to 27.561 points; Frankfurt +0,17%; Paris +0,03%; Madrid +0,71%; London +0,82%. Stay back Amsterdam -0,07%.
In New York, the three main indices are in the red, after the increase in consumer prices in October was 0,9% compared to September (+0,6% expected). On an annual basis, growth was 6,2% (5,4% in September), the largest increase since November 1990, against expectations for +5,9%. In the last year, i energy prices even increased by 30%, those of foodstuffs by 5,3%. The data on weekly requests for unemployment benefits is positive (minus four thousand), at 267 thousand, the lowest figure since the beginning of the pandemic.
The macro picture increases bets on a rate hike by the Fed sooner than expected and pushes sales of US government bonds, which see prices fall and yields rise, while the curve flattens. Furthermore, the dollar index takes off, currently moving up by 0,6%. The euro changed at a loss against the greenback at around 1,153.
Inflation is stepping on the accelerator also in China and Germany. In the Democratic Republic, producer prices recorded an annual +13,5% in October, a new all-time high since October 1996, due to the high cost of raw materials; +1,5% consumer prices. In Germany, the price index recorded +0,5% on a monthly basis and +4,5% annually, lengthening compared to September 2021, when the increase had been 4,1%.
Among the raw materials, the Petroleum, after US inventories increased for the sixth time in the last 8 weeks, but less than expected by experts. The Brent it dropped 0,8% and traded at around 84,1 dollars a barrel; The wtf -1,5%, 82,88 dollars a barrel.
In Business Square it is precisely an oil stock like Tenaris that wears the black shirt today, -3,32%. Saras is also bad, -5,25%, while Eni (+0,35%) and Saipem (+0,71%) appreciate.
Among the titles with the most awards after the quarterly reports are Safilo +8,46%, Rcs +11,69%, Mediaset +6,86%. In particular, the television group published accounts growing above pre-pandemic levels and an advertising revenue which confirms the positive trend under way for five consecutive quarters.
On the main basket, the lights go back on for Stellantis +2,53%, Telecom +2,67%, Cnh +1,86%. Well some utilities such as Terna +1,51%, A2a +1,54%, Snam +1,48%. Among the banks, Unicredit stands out +1,3%.
Realizations hurt Banca Generali -2,15% and Amplifon, -1,01%. Stm falls, -1,96%. Luxury is confirmed as weak, with Moncler -1,09%. Ferragamo loses 4,23% after the contrasting results of the quarter and the uncertainty expressed by the management on the Chinese market. “The prudence expressed by management yesterday on the outlook for China weighs on the stock, leading us to remain cautious for the coming months,” says a trader. Deutsche Bank raises the target price to 20 from 18,8 euros.
The secondary closes down, where the spread between 10-year BTPs and Bunds of the same duration, it rises to 116 basis points (+3,19%) and the rates respectively reach +0,88% and -0,29%.
The economy of the Belpaese, however, remains effervescent: +2,6% in the third quarter according to the preliminary estimate by Istat. Furthermore, the auction of annual BOTs was a success, for 5 billion, with a yield of -0,533%, down by 6 cents compared to the auction of the previous month and just below the previous all-time low recorded in August (-0,513 %).
