La French political crisis sends it haywire Paris and European stock exchanges They open the month of December with a very volatile session, which ends mixed, in a context in which the PMI indices of the manufacturing sector of the euro zone still appear disappointing. The political and economic dramas of the bloc do not translate into a debacle for the markets, because they fuel hopes of a more open ECB to a robust rate cut at the meeting on the 12th to stimulate the economy. The effects are instead seen on theeuro, retreating 1% against the dollar and a change in the 1,0468 area. Oil, on the other hand, is little moved.
Business Square gains 0,21%, capped by stellantis (-6,3%) after the resignation with immediate effect of CEO Carlo Tavares due to disagreements with the board of directors. The decision did not come unexpectedly, but investors are wondering about a successor, while for now the steering wheel passes to an executive committee led by president John Elkann.
The car crisis is affecting all of Europe, even if the German one Volkswagen Today limits the damage on the stock market to 0,3% on the day of the launch of the protest strike against wage cuts and possible layoffs by the automotive group. The square of Frankfurt is the best, +1,44% and marks new highs. Among the four-wheel stocks bmw stands out with a progress of 2,73%.
Search for London, + 0,3%.
Paris draws and Oat under pressure
The weakest square is Paris, +0,02%, while the French executive is now at the end of the line. To keep it afloat, Prime Minister Michel Barnier has reportedly made some concessions in the budget on the financing of social security, but that would not be enough for Marine Le Pen, who has announced her intention to vote no confidence.
Political uncertainty is also reflected in bonds with theOat again under pressure and a spread between the French and German ten-year bonds that is once again approaching 90 basis points (88), while the yield on the French government bond rises to 2,91%.
Wall Street set for new records
Wall Street also moves mixed after the first hours of trading, (DJ -0,28% S & P 500 +0,14%, Nasdaq +1%), but moves in record territory after having closed a golden November. Among the stocks, the ones that shine are Tesla (+ 2,36%) and Intel (+3,64%), rewarded after CEO Pat Gelsinger's Farewell, who stepped down after a nearly 40-year career at the chip giant.
Manufacturing still contracting in Euroland
The recession of the manufacturing in the eurozone worsens further and the opinions of purchasing managers of companies collected by S&P Global produce an index that is down more than expected and below the 50 line that separates expansion and contraction. In November the PMI fell to 45,2 from 46 in October, signaling "a sharp deterioration in conditions" due to "larger contractions in new manufacturing orders, production, purchasing activity and inventories".
The study center's note states that employment levels also recorded "the sharpest decline since August 2020" and in particular "Germany and Austria reported strong staff cuts".
“The data for November looks terrible,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. “It’s as if the eurozone manufacturing recession isn’t going to ease and, with new orders falling fast and accelerating, there’s no sign of an imminent recovery.” The sector is expected to fall 0,7% in the fourth quarter from the third quarter, indicating the slump will likely extend into next year.
Overseas, the November PMI and ISM manufacturing index also remained below the 50 line, but still rose more than expected. The PMI rose to 49,7 from 48,5 in October; the ISM rose to 48,4 points from 46,5 and expectations at 47,5. In addition, the index on new orders rose by 3,3 points to 50,4, that on production by 0,6 points to 46,8, that on employment from 44,4 to 48,1. The price index fell from 54,8 to 50,3.
In Piazza Affari money for Nexi, Campari and Leonardo
In Piazza Affari they close a session in money nexi + 5,5% Campari + 2,36% Leonardo + 1,49% Generali +1,7%. The queen of digital payments benefits from the judgment of some brokers. Intermonte sees a potentially downward competitive pressure from Worldline after the recent disruptions caused in recent days by the French payments group. The 'down' of Worldline "should not have significant impacts on Nexi's fourth quarter results even if it occurred in a market context already complex for growth", adds the broker. Equita increases the weight of the stock by 50 bps in its core portfolio thanks to the sustainability of free cash flow and attractive valuations.
The blue chips that have lost the most, in addition to Stellantis, are Italgas -2,11% Getting very -1,92% Telecom -1,63%.
Mixed banks: good Unicredit +1,15%, while they retreat Mediobanca -0,65% and Bpm bank -0,56%.
The spread goes up
The session ends in the red for Italian paper, on a day when Bunds were particularly attractive. spread between the Italian and German 123-year bonds ends the day at XNUMX basis points, with returns down to 3,26% and 2,04% respectively.
Read also: Europe recovers despite fears over France
