È boom for gold, but in the stock market the picture has completely changed today in Europe: the price lists in fact they close at a loss penalized by sales in auto sector and in luxury. In particular, the 4 wheels move backwards, dragged by Mercedes (-6,84%), with the German company that cut the profit margin for the full year for the second time in less than two months, due to the decline in sales in China. Luxury also did badly with a report from Jefferies.
I'm so in the red Frankfurt -1,47% Paris -1,48% Amsterdam -1,37% London -1,18% Madrid -0,19%.
Square Business limits the damage to 0,83% and retreats to 33.762 basis points, after having partially defended itself with the utilities, starting from Italgas (+ 1,41%), Terna (+ 1,36%), Hera (+1,08%) and with the big banks.
The Wall Street moves downwards at the end of the morning, due to gains after the new records reached yesterday by DJ and S&P 500, reflecting the decision of the Fed to cut interest rates by 0,5%. The US stock markets are still on track to close a largely positive week.
Gold Booms; Yen Falls as BoJ Steadfast on Rates
Today, money is mainly flowing towardsgold, which continues its run updating the historical highs: at the moment the spot gold is trading above 2613 dollars per ounce (+1,01) after having reached a peak of 2619,36 dollars. The December 2024 future is trading in the 2.637,4 dollar area after having risen to 2644,80 dollars per ounce. The gold rush is favored by a weaker dollar, with a more accommodating Fed than expected and the need for investors (and central banks) to protect themselves in a context that still presents many geopolitical, but also economic, unknowns, especially in China. Strangely, according to many observers, today the Chinese central bank has not moved on rates, evidently thinking that there is no need for adequate monetary stimulus after the move by the US central bank.
It weakens the Petroleum, with November contracts of Brent and WTI trading fractionally lower at $74,38 and $70,75, respectively.
On the currency market, the index of dollar today is slightly recovering. The greenback is mainly being pushed up by the exchange rate with the yen, against which it gained about 1%, for a cross at 144.07. Weighing on the Japanese currency is the decision of the Japanese Central Bank not to increase the cost of money, after the adjustment in the last meeting. Governor Kazuo Ueda also refrained from providing clear indications on the possibility of an increase in interest rates in the coming months. The situation favored the rally of the Tokyo Stock Exchange, with the Nikkei which closed up 1,67%.
Lagarde: Much uncertainty ahead of us
On the subject of central banks, today we see the intervention of the president of the ECB Christine Lagarde at the IMF in Washington. “Our strong policy actions have kept inflation expectations anchored, which is estimated to return to 2% in the second half of next year,” Lagarde said. “Given the magnitude of the inflation shock, this is significant progress. But the uncertainty we face is still deep.” Furthermore, “the economy is going through transformational changes and we need to analyze them and understand their impact.”
Piazza Affari, cars and luxury plummet
On the main list of Business Square there is a small Caporetto for the car and luxury sector stocks. The biggest losses of the day are those of Iveco, -6,41%, but the weight of the sector's performance was also felt on stellantis -3,44%.
In fashion they are going backwards Moncler -5,18% and cucinelli -5,19%, after yesterday's brilliant awakening. Investors were disappointed by Jefferies' report on the sector, which does not see any appreciable improvements in the second half of the year at a European level. As for Italian companies, the target price of the king of cashmere stock was reduced to 90 euros from 97, while that of the down jacket company was brought to 48 euros from the 58 previously set. Outside the main basket, it also collapsed Ferragamo -6,18%.
The day was very negative for Telecom -5,92% and stm -4,91%.
Risk aversion has supported a recovery in utilities. Italgas benefited from the news, reported by Il Sole 24Ore, according to which the Marguerite fund has started the process of selling 48% of Medea, a company controlled at 52% by the company led by Paolo Gallo and which has methane gasified Sardinia with investments of approximately 350 million. Among the subjects that are looking at the dossier, according to the financial newspaper, there are Blackrock and Marubeni.
The big banks are doing well: Unicredit is confirmed in money with a gain of 0,55, although the road to the Commerzbank takeover appears to be on the uphill path. Today, a joint statement was released by the workers' committee of the German bank and the Verdi union calling on the Berlin government to oppose the possible acquisition of the national champion. The fear is the massive loss of jobs in Germany in the event that the operation goes through. The two groups said they have asked the government to "work together with the employees for a strong and independent Commerzbank".
It appreciates by 0,6% Understanding.
Spreads down
On the secondary it spread between BTPs and Bunds drops to 130 basis points, with the rates of the benchmark ten-year bonds at 3,45% and 2,19% respectively.