I government bond yields they rise again and the stock market suffers, closing another session with a decline in Europe, while Wall Street it fell sharply at the end of the morning, after the mixed session the day before.
The words of the Fed governors, who are not very accommodating, do not help the speculative appeal.
On the currency side the dollar consolidates its positions andeuro changes to the lowest for several months in the 1,045 area, while among raw materials the Petroleum (Brent +0,68%, 91,33 dollars a barrel).
European stock markets down and rates up
Business Square it is among the worst and loses 1,32%, moving further away from the psychological threshold of 28 thousand points lost yesterday (27.482 at the end of the session). They ballast the price list above all Prysmian (-5,15%) and utilities, which suffer from competition from sovereign bonds. In fact, rates also rise for the benchmark ten-year BTP, indicated at the closing at +4,91% (from 4,77% yesterday), the highest in over twenty years, against 2,95% (from 2,91%) of German rival, for a spread of 196 basis points (+5,04%). In the meantime, the project continues successfully placement of the new BTP Valore, which today recorded high requests, close to 4,5 billion euros for total orders, at the end of the second day above 9 billion.
Tensions on secondary bonds are also affecting other European states and the climate on the stock market is cooling further: Frankfurt loses 1,08%, Paris -1,01% Madrid -1,66% Amsterdam -0,62% London -0,44%. The worst is the small square of Lisbon, -2,74%, where the government announced the stop to exemptions for resident foreign pensioners starting from 2024. A much discussed regulation, but which has livened up the Portuguese economy and in particular the real estate market, probably too much, with house prices growing by 78% in just a few years.
Wall Street weak; Ten-year Treasury at highest since 2007
Wall Street moves weakly and the Nasdaq drops 1,7%, while the prices of the T Bond and to increase returns. A movement that gained strength from the avoided shutdown and which was accentuated by the statements of some Federal Reserve bankers. In the Powell household, it continues to be reiterated that i rates will remain high for a long time and that a further increase cannot be ruled out. In particular, Michelle Bowman is “willing to support an increase if the data shows that progress on inflation is stalling”. A thought shared by the head of the Cleveland Fed, Loretta Mester: “I suspect we may need to raise rates once again this year”. For Michael Barr, however, the debate is not so much about a new increase but rather about the duration of rates at high levels.
In this context the XNUMX-year Treasuries it reaches a yield of 4,8%, a 16-year high.
Piazza Affari, Banca Monte Paschi still in rally
In any case, the Milanese sales do not come close Monte Paschi bank of Siena, which maintains the rally seen in recent days and also achieved an increase of 1,06% today.
The Sienese institution is the only one in the banking sector to make a profit. Negatively it stands out even today Unicredit -1,72%.
The purchasing page is short and also includes: Amplifon + 0,9% Tenaris + 0,73% Italgas + 0,42% Campari + 0,63%.
Red is strong for for Prysmian after recent gains following new orders for approximately 1,1 billion euros in Germany.
Back off nexi -3,03%.
Among the utilities it is still a letter for Enel, -2,54%, but the industry also suffers as Cnh -2,42%.
Pirelli limits losses to 0,76%, while the company communicates that on 29 September the Chinese agreement ceased, in fact the shareholder agreement called "Amended and restated acting-in-concert agreement", which had been signed on March 29, 2021 between China national tire rubber corporation (Cnrc) and Silk road fund (Srf).
