The Fed didn't just leave rates unchanged. President Powell did not rule out that the increases could end here for 2023, even if it is too early to lower the guard against inflation. The stock markets have fully perceived the positive signal: in Europe the Bull has unleashed itself across the board. In Milan the Ftse Mib +1,82% quickly surpassed the barrier of 28.400 thousand points ahead of Frankfurt.
In Piazza Affari the quarterly reports of Tenaris and Ferrari trigger purchases
Performance drives the rally Tenaris record + 9%: after the math: the company closed the third quarter with one billion dollars in Ebitda, around fifty million more than consensus expectations. The company also launched a buyback of up to 1,2 billion, equal to just over 6% of the capital. Follows closely Stm +6,5%, dragged up by the results of Qualcomm and AMD, shines among industrialists Interpump + 4,5%. Toned stellantis with a leap of 2,5%.
Above estimates at 322 million lFerrari's quarterly profit +3%. The horse company closed the third quarter with net revenues of 1,5 billion euros, up 23,5%, with total deliveries of 3.459 units, up 8,5%. Profits grow 46% above estimates. CEO Vigna announces: orders are at an all-time high.
But the wave of growth involves almost all sectors in Europe. At the head we find the Real Estate +4,9% about. Followed by Tech +3,2%. At the rear, but still on the rise, is the sector Insurance +0,7%. The most purchased stocks in recent sessions suffered modest declines: Unicredit, Bper and Bpm with drops however contained below one percentage point.
Change of pace in fixed income: yields falling after the Fed
No less significant is the change in pace of fixed income. The yields on government bonds in the euro area, in addition to reflecting the decline in inflation, fall in line with the performance of the US market. After the Fed, in fact, there were massive purchases of Treasuries. The ten-year bond is at 4,70% yield, about twenty basis points less than yesterday. Biennial at 4,95%.
Il BTP moves in harmony: the ten-year bond trades at 4,63%, at the lowest level for over a month. The spread compared to the bund (2,72%) slipped to 192 basis points. On the issue of interest rates, Klaas Knot, member of the Governing Council of the ECB and governor of the Dutch central bank, said that the ECB is likely to keep them at current levels in the coming months. He further added: “We should be a little patient and not raise rates too much to avoid suffocating the economy.”
Futures anticipate one off to a good start for Wall Street too, a few hours away from a session that promises more twists starting from the accounts of Starbucks +7% pre-stock market until the key event: tonight with the markets closed the Apple accounts.