The European financial week is darkening and the last day of October is closing in decline again, with investors still grappling with the earnings season and a broad macroeconomic picture. The rebound in the'inflation in Euroland (while remaining within the ECB target of 2%, from 1,7% the previous month) and above all the negative trend of Wall Street In particular the Nasdaq loses 2,24% with the Magnificent Seven revealing worrying wrinkles, after yesterday Meta (-3,36%) And Microsoft (-6,61%), presenting good quarterly results, have raised the alarm on the development costs associated with artificial intelligence. The numbers are expected this evening Amazon (-3,14%) ed Apple (-1,33%).
Piazza Affari weighed down by utilities and the rise in the spread
Business Square loses 0,64% and, after having conquered 35 thousand points last Monday, today it further rewinds the tape to 34.237 basis points.
The utilities sector is weighing on the price list in particular, in a context of rising government bond yields. The spread between ten-year BTPs and Bunds of the same duration widens to 127 basis points and the rate of the Italian bond stops at 3,66% after having exceeded 3,7% in the session. A particularly pressing negative trend for Italian paper, but which characterizes all the bonds of the euro zone and even more so the American T-Bonds (the ten-year is at 4,313%, up 1,08% compared to the previous close), while the electoral showdown between Kamala Harris and Donald Trump is getting ever closer.
Returning to Milan stocks: today it is breathing a breath of fresh air stellantis, +2,93%, after the presentation of the quarterly report, with rResults in sharp decline but already expected and for which the stock has already paid the price in recent sessions. The company saw its revenues fall by 27% to 33 billion euros.
The effect of accounts is not as “benevolent” for stm, -2,81% and Prysmian, -0,83%. Not even Bank Intesa Sanpaolo (-0,91%) celebrates, despite having significantly exceeded expectations for the first nine months and revised its forecasts upwards for next year. CEO Carlo Messina aims to reach 9 billion in net profit against the 6,5 billion estimated two years ago.
Among the biggest declines of the day are Getting very, -3,19%, Campari -2,34% cucinelli -2,21% Hera -2,11%, A2a -1,91%.
The meager increases, together with Stellantis, touch nexi + 1,72% Tenaris + 0,9% Eni + 0,14% Saipem + 0,78% Interpump + 0,34% Bpm bank + 0,23% Iveco + 0,19%.
Europe in the Red; Estée Lauder Collapses in NY
In the rest of Europe Paris wears the black jersey, -1,23%, weighed down by Total (-3,81%) And BNP Paribas (-4,16%) after the disappointing quarterly results presented by the two groups. On the French stock exchange it soars SocGen (+11,4%) which published strong growth figures and announced changes to top management. The climate is still cold in Frankfurt -1,03% Amsterdam -0,8% London -0,7% Madrid -0,38%.
In New York, the high-tech sector collapses, but other quarterly results also produce significant damage. Estée Lauder, -20,78%, is about to close its worst session ever due to the decline in sales in China and the cut in dividends. The cosmetics company also withdrew its annual forecasts for 2025.
Losses hit trading platform stock “Robinhood” (-13,8%) which disappointed expectations with the quarterly accounts, while Uber (-8,9%) is worrying with gross bookings, for the fourth quarter, lower than estimates.
Euro-dollar steady, gold moves away from highs; oil up
On the foreign exchange market'euro-dollar is little moved (1,085), while the greenback loses ground sharply against the yen (152,36). Giving a boost to the Japanese currency is a more severe than expected attitude by the Japanese central bank. In today's meeting, in fact, the BoJ kept interest rates extremely low, but said that the risks linked to the US economy are somewhat easing, a sign that the conditions are being created for a new increase in interest rates.
In terms of monetary policy, investors were also able to evaluate many important macro data today. TheEuropean inflation, as mentioned, surprised with an unexpected increase, while remaining within the margin expected by the ECB. Even in Italy, According to preliminary estimates, the consumer price index recorded a zero monthly change and an increase of 0,9% on an annual basis (from 0,7%). The shopping basket has increased in particular, with the prices of food, household and personal care products accelerating on a trend basis from +1,0% to +2,2% and those of high-frequency products going from +0,5% to +1,0%.
In United States, which remain under special observation ahead of the elections and the Fed meeting in November, core inflation pressures remained stable in September (+0,2% on August, +2,1% the PCE figure on an annual basis). Last month, personal income increased by 0,3%, in line with estimates, while consumer spending rose by 0,5%. Weekly claims for unemployment benefits were 12 fewer and below consensus. There is now great anticipation for the employment report due out tomorrow.
Moving on to the raw materials: the'gold is falling from its recently reached highs and is currently trading at $2741 an ounce; it is appreciating Petroleum with WTI near $70 a barrel and Brent just under $73.
