Third consecutive session of earnings for Business Square, which is still among the best in Europe today, in a mixed context for the markets, with Wall Street cautious at the start. In particular, technological stocks with stars and stripes are once again in the red, penalized by the rise in Treasury yields (+1,681% on ten-year bonds).
Even in Italy the attention on government bonds remains high, the spread continues to rise while inflation advances, Omicron goes crazy and the government is forced to take measures. Furthermore, the showdown for the election of the new Head of State is approaching.
BUSINESS PLACE BEYOND THE PSYCHOLOGICAL THRESHOLD OF 28 POINTS, AMSTERDAM WEAK
At the finish line of the day, the Ftse Mib marks a progress of 0,74%, to 28.162 points, after the foray beyond the 28 mark seen yesterday in the early afternoon.
Recovery continues Iveco, +6,22%, which at this point exceeds the debut price of 11,26 euros per share on Monday and reaches 11,376, for a capitalization of more than three billion euros. He suffers Cnh, -1,14% after the spin-off of the truck company, but the automotive sector as a whole is in tune, also at a European level and after the fireworks seen on Wall Street on the eve of the eve.
They go up Pirelli +5,25% (with a positive recommendation from Jp Morgan), stellantis +4,03%. Celebrate the safe of Agnelli Exor, +1,2%. All the cyclical sectors more sensitive to growth, such as financials and industrials, are favored by a rotation of portfolios, in a context of waiting for a more restrictive policy by the central banks.
They are therefore highlighted on the price list Unipol + 1,98% Finecobank + 1,46% nexi +1,85%; Bpm bank +1,13%. Oil rallies favor oil-related stocks, such as Eni + 1,16%.
Purchases are concentrated on Telecom +2,7%: the board of directors at the end of January could represent a significant step both for the industrial plan and for the offer of Kkr while some operators welcome the rumors, reported by Il Sole 24 Ore, according to which the two main Italian banking groups (Unicredit and Intesa Sanpaolo) could join the consortium of institutions supporting the US fund.
The declines mainly affect utilities: A2a -1,08%; Terna -0,84%; Ivy -0,79%; Enel -0,72%; Italgas -0,56%. Campari is also in the red -0,74%; General -0,58%; Inwit -0,52%; Atlantic -0,2%.
In the rest of Europe: Frankfurt +0,7%; Paris +0,9%; Madrid -0,06%; London +0,14%. In red Amsterdam -0,37%.
SPREAD UP AND INFLATION AT HIGHEST SINCE 2008
Another negative session for the Italian secondary school. The spread between 10-year BTPs and Bunds of the same duration, it rises to 136 basis points (+1,46%) and the rate of the Italian bond is +1,23%, while the Bund is -0,13%.
The infections along the coronavirus, along the boot, are close to 190 thousand, while galloping inflationdriven by energy goods. According to preliminary estimates by Istat, in December 2021 the national consumer price index for the whole community (NIC), gross of tobacco, recorded an increase of 0,4% on a monthly basis, bringing the inflation rate to +3,9% (from +3,7% in the previous month). The rate of +3,9% is the highest since August 2008, when inflation was +4,1%. On average, in 2021 consumer prices recorded a growth of +1,9% (-0,2% in 2020).
However, the picture does not scare investors too much, at least in the long run. In fact, the books for the syndicated placement of the new 55-year benchmark of the BTP (maturity 30 September 1), announced yesterday by the Ministry of the Economy, closed with requests for 2052 billion euros. Requests include €2,75 billion from joint lead managers. The amount of the securities offer is equal to 7 billion euro. The spread is set at +6 basis points on the thirty-year bond maturing in September 2051. The first short coupon on 1 March 2022. The ministry had yesterday announced that it had entrusted Barclays Bank Ireland, Bnp Paribas, Deutsche Bank, Intesa Sanpaolo and JP Morgan the placement mandate.
EMPLOYMENT BOOM IN DECEMBER IN US PRIVATE SECTOR, BUT WITHOUT OMICRON
While awaiting the reading of the minutes of the last Fed meeting, which will be announced in a few hours, the data on US employment in the private sector in the month of December is surprising. According to the monthly report prepared by Macroeconomics Advisers and Automatic Data Processing, the agency that prepares payroll, 807 more jobs were created than in November, more than double what was expected. The November figure was then revised from +534.000 to +505.000. In April of last year, 19,4 million jobs fell, the worst figure ever recorded by the report, due to the crisis caused by the coronavirus pandemic.
However, the unknown factor of the new and highly contagious variant of Sars-Cov-2 looms over January: "The labor market strengthened in December, with the attenuation of the spread of the Delta variant and with the impact of Omicron still to be recorded" observes Adp.
OIL ON THE RISE AND EURO RECOVERY
Crude oil futures are up, after yesterday's OPEC+ decisions.
Brent moves up by about 1,2% around 80,95 dollars a barrel; Wti +1,32%, 78 dollars a barrel.
In the foreign exchange market, theeuro, which deals in progress against dollar with the cross at 1,133.
Beware of Draghi's fate, warns Reuters in a comment. The outcome of the elections for the President of the Republic could in fact have an impact on the single currency.
If the former ECB number one is chosen to succeed Sergio Mattarella, it would end the Draghi government and leave Italy with the choice of appointing a new prime minister or holding elections a year ahead of schedule – a scenario that could damage the EUR. However, any damage in this regard could be mitigated by the knowledge that Draghi would be overseeing the situation for seven years. On the contrary, if Draghi's prospects at the Quirinale vanish, the euro would benefit in the short term, but could suffer later on due to the exit from the political scene of the current prime minister.
