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Stock market October 6 afternoon: US employment grows and pushes Wall Street lower. Bonds and BTPs rise: spreads over 200

The growth in US employment raises new fears in the financial markets which fear another tightening by the Fed but the Italian banks, invigorated by the easing of the decree on the extra tax, are on the rise and dragging Piazza Affari

Stock market October 6 afternoon: US employment grows and pushes Wall Street lower. Bonds and BTPs rise: spreads over 200

While waiting for the most awaited data of the week, relating to the American labor market, the European stock exchanges they showed courage in the hope that the statistics do not signal the risk of further increases in rates. In reality, the number of new employees (336 thousand, unemployment rate stuck at 3,8%) introduces new elements of concern for the financial markets, as demonstrated by the red futures of the US stock exchange. As a result, they start to rise again T Bond and BTP decennial, above the 5% threshold while, after a brilliant morning, the rebound of Business Square +1,2% just under 28 thousand points around 12. In this case, however, the US employment numbers have very little to do with it, as demonstrated by the rush to rise of the banks.

The new decree on extra profits gives relief to banks

Credit institutions occupy all the top positions in the ranking, a boom that is explained by the approval of thegovernment amendment on bank extra profits, a truly inappropriate title because very little remains of the original provision that had caused a sharp decline in the sector. According to Bloomberg, the vast majority of banks will prefer to divert the contribution to strengthening the institutions' capital, as required by law. It will be very problematic for the Mef to reach the target of two billion in revenue, already revised downwards. In exchange, it increases the solidity of the system already called upon to make an extraordinary effort in a turbulent season for the placement of public debt.

Hence the performance of the institutions that recovered the lost ground after the launch of the first measure. The upward race is challenging first and foremost Bpm bank, also galvanized by the fact that Morgan Stanley has restarted coverage with Overweight (target price of 6,20 euros), Bper e Ps, all with variations greater than 3%. Continued Unicredit, just below Intesa Sanpaolo + 1,6%.

The system contributes to confirming the centrality of the system for public finance BTP Value boom which, just four months after the first issue, is approaching the all-time record, a circumstance which however does not prevent a new increase in the spread beyond the 200 point barrier.

Italy, Scope: debt limits the rating

To put the finger on the wound is a report by Scope Rating. The worsening of Italian public finances for this year and next could mean that government bonds are no longer eligible to be purchased by the ECB as part of the so-called 'anti-spread shield', constituting a threat to creditworthiness From Rome. Scope Ratings says so in a report dedicated to Italy and previewed by Reuters. Hence the feeling that in the coming weeks, as Moody's verdict approaches, the debt dam will have to be consolidated.

Waiting for data on employment in the USA

It is in this climate that the market has approached the key event of the day, the data on job market which is a significant value in the Fed's next choices on rates. Waiting for the announcement of the mega deal of the year. The purchase, by Exxon Mobil, of control of Pioneer, the most important shale oil operator in the United States: value 60 billion dollars. But not even this will bring back good spirits in a market which, crushed as it is by the fear of new Fed hikes, is about to close its fifth consecutive week in the red.

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