Is the party here? The press conference of the president of Fed Jerome Powell it put the markets into euphoria. As expected, the Federal Reserve maintained the unchanged interest rates, for the third consecutive time at 5,25-5,5%, signaling the possibility of three cuts in 2024 (equal to a total of 75 basis points). News that Wall Street celebrated with new records. The number one of the US central bank, without declaring "mission accomplished", admitted that the rate increases are "probably over", but left the door open to new changes based on future economic developments.
Now all eyes are on Frankfurt. On the day of the communications of the ECB, European stock markets open sharply higher in the wake of Wall Street. Frankfurt earn 0,71%, Paris 0,84% and London 1,91%. More cautious opening for Milan (+0,46%) weakened by the sharp decline in the banking sector with the hypothesis of a rate cut in 2024 by central banks.
Oil falls, Dow at highs
even the Petroleum is in focus, with Brent hitting lows of $72,29 a barrel, the lowest since late June, before rebounding slightly, while US crude fell to $68,71. Recent price drops are due to reduced demand due to slowing global economic growth and excess supply after the US Energy Information Agency raised its 2023 US supply forecast by 300.000 barrels per day , and to an increase in shipments of Russian oil.
The end of the rate hike announced yesterday by the Federal Reserve allowed the three main indices to Wall Street to rise for the fourth consecutive day. The Dow Jones, up 1,4%, hit a new all-time high. Among the components of the blue chip basket, Apple it gained 1,6%, a new historical record. Nasdaq + 1,4%. S & P500 + 1,4%.
According to the new estimates, "core" inflation, the data preferred by the Fed which excludes volatile energy and food prices, is indicated at +2,4% at the end of 2024 from +2,6% in the September forecast.
The Fed has given wings to stocks, gold and stocks bonds, especially those with a shorter term. Ten-year Treasury Notes at 3,95%, from 4,20% yesterday. Two-year Treasury Note at 4,32% from 4,70%. Spread between the 37-year and the two-year bonds falling to -55 basis points, from -XNUMX basis points the day before.
The reaction of the other assets was immediate. This morning the ten-year Bund starts again at 2,16%. Ten-year BTP at 3,92%.
Il cross euro dollar it rose by 0,7% yesterday, this morning the appreciation continues. it is the stock markets of Australia and South Korea that follow Wall Street. Kospi of Seoul + 1,2% S&P ASX200 di Sidney +1,3%. Penalized by the strength of the yen, the Tokyo stock market is set to close down 0,7%. Shanghai Composite -0,2%.
Asia also runs, Country Garden is saved
Hang Seng of Hong Kong +1%. Real estate companies are in the spotlight after developer Country Garden Holdings repaid an eight hundred million, $111 million yuan loan ahead of schedule. The resources to service the debt restructuring were raised from the sale of a stake in a shopping center operator. In the communication, the highly indebted company states that it is “actively seeking a global solution to fully address the current risks of offshore debt”. Country Garden has about $13 billion in dollar bond debt.
The took off, closing the session up 2,40% at $2.030.
Bitcoin to 42.800 dollars, up by +4,5% yesterday.
The word now passes to the ECB. The forecasts are excellent.
This morning in Asia Pacific the stock exchangesAustralia and South Korea to keep in the wake of Wall Street. Seoul's Kospi +1,2%, Sydney's S&P ASX200 +1,3%. Penalized by the strength of the yen, the Tokyo stock market is set to close down 0,7%. Shanghai Composite -0,2%.
Cucinelli rises in the major index
It stands out in the Milanese price list Amplifon (+4,3%), after the acquisition of Audical and entry into the Uruguay market. He also runs Cnh (+4%). It shines BRUNELLO CUCINELLI (+3,53%) which has once again raised the turnover estimates for the end of the year, now seen growing by 22-23% at current exchange rates to over 1,1 billion euros, with a "very important" margin and profit . The group president expects an improvement in the Ebit margin in 2024 and excludes acquisitions of other brands. Just over 10 years after its listing on the Italian Stock Exchange, on 18 December the group will enter the FTSE Mib blue chip index.
Leonardo (-2%). In agreement with the Italian Ministry of Defense, it signed with the KNDS consortium a strategic alliance with the aim of creating a European defense group and strengthening collaboration in the field of terrestrial electronics.
Tim (+2,29%). Salvatore Rossi confirmed to Reuters that he does not intend to run for a new term as group president once the board of directors expires next year. Today, according to a source, he will communicate this to the Board of Directors, called to discuss the regulations for drawing up the list of the new board. Among the possible candidates for succession are the president of the CRT Foundation Fabrizio Palenzona, the current councilor and president of Asstel Massimo Sarmi and the former finance minister Vittorio Grilli, now at JP Morgan. According to two sources, within this week, probably on Friday, Vivendi is expected to file an appeal with the Court of Milan against the decision of the Tim board of directors to sell the fixed network without going through the assembly.
