La ECB raises rates by 75 basis points, but according to the exegetes, it leaves the door open to a less aggressive attitude in the next meetings. Thus the euro shrinks, making a great effort to maintain parity with the dollar, but stocks and bonds breathe a sigh of relief, especially in Milan, which closes as queen in Europe with an increase of 0,9% to 22.590 basis points. In parallel they narrow it spread and yields: the ten-year BTP it closed at +4,04% and the Bund at 1,98%, for a differential of 207 basis points (-6,66%).
After a shaky morning they find the drive to reach the finish line in progress too Madrid + 0,64% Amsterdam + 0,57% Frankfurt +0,12%. Limit the damage Paris, -0,51%, penalized by the thud of stm -6,96% after the accounts in September. The title is also in red in Piazza Affari. Outside the eurozone London salt by 0,23%, but Zurich loses 0,98%.
In the midst of a deluge of quarterly reports, among which those of oil stocks stand out in the first place Total (+ 3,08%) and Shell (+ 5,24%), Saipem (which closes with a boom of +15,69%), the banking sector is shaken by Credit Suisse, -18,6%, due to a recovery plan that includes a 4 billion Swiss francs ($4,05 billion) capital increase, the cutting of thousands of jobs and the expansion of services of investment banking to the wealthiest clients.
Important news also arrived after the first part of the European session from Wall Street, which was mixed at the start (the DJ did well, the S&P 500 and Nasdaq fell fractionally).
Meta collapses on Wall Street, but fears of recession ease with GDP beyond expectations and inflation falling
Shareholders fleeing the title MetaPlatforms after halving profits and rising costs for investments in virtual reality. Concrete speculators don't look so subtly at Mark Zuckerberg's meta-projects and the stock dropped below one hundred dollars for the first time in six years.
The disappointment for Big Tech's performance, however, does not knock out the US stock exchange even today. The mood remains partially positive as there is widespread belief that the Fed will slow pace after another 75 basis point hike expected in November. Today the Third quarter GDP increased at the annualized rate of 2,6% compared to the previous three months, against expectations for +2,3%, after two negative quarters. In addition, the data oninflation pce dropped from +7,3% in the second quarter to +4,2%, with the 'core' figure, the one excluding energy and food product prices, at 4,5%, in line with expectations, after 4,7 .XNUMX% of the previous quarter. A set that stems the ever-looming fears of a recession.
Among other titles with stars and stripes Twitter it was up slightly after banks began sending $13 billion in cash in support of Elon Musk's takeover of the platform, suggesting the deal is on track to close by tomorrow.
The ECB raises rates, but the "dove" Lagarde helps the markets
The ECB raises interest rates by 0,75 points and the main rate rises to 2%, the deposit rate to 1,5% and the marginal lending rate to 2,25%. Eurotower has therefore met expectations and will continue on the path of increases, promised Christine Lagarde: "Our mandate is price stability and we have every intention of respecting it, but this does not mean that we are unaware of the risk of recession".
There are three conditions on the quantities of the next increases: "inflation prospects"; “we will take into account the measures taken so far, we have already raised rates by a total of 200 basis points”; “we will be attentive to the transmission of monetary policy”.
However, significant elements of the future reduction of the stocks of public and private securities accumulated with the App program were not discussed today, "because we have taken decisions on many issues". But it had already been established previously that it would be discussed in December, where "we will decide the key principles of the future reduction of the App".
Many observers expect a slowdown on rates: “We expect the ECB to slow down the pace of rate hikes, increasing 'only' by another 50 percentage points in December, reaching a deposit rate of 2% by end of the year,” said Altaf Kassam of State Street Global Advisors. While for Moneyfarm the ECB meeting had "a lower level of austerity than expected" with a "more accommodating rhetoric and the flexibility on the reinvestments of App and Pepp which represented an expansive surprise".
Same predictions from S&P: “The ECB's October move was widely expected and completely discounted by the markets. Despite growing signs that the eurozone economy is heading into a recession, we believe this is unlikely to be the end of the monetary tightening cycle, with another 50 basis point hike in December on the way,” said Diego Iscaro, Director report of S&P Global Market Intelligence.
Economy Minister Giancarlo Giorgetti sees today's rise as a widely expected move and for the future, says: "it probably won't be the last in this phase, but we trust in the wisdom of the ECB".
Piazza Affari full of energy
Saipem leads the rises of a list full of energy. The title toasts after a quarterly above expectations and the improvement of the guidance for the year, also helped by the promotion of Akros to "buy" from "neutral". Well Eni + 3,48%.
Important rises in the world of utilities: Italgas +5,35%, which respected expectations in the quarter; Hera +5,09%; A2a +3,59%; Enel + 3,12%.
Among the banks they stand out Bpm bank + 4,54% Bper +2,83% and Mediobanca +3,11%. Piazzetta Cuccia is ready to discuss the purchase of large wealth management companies, General Bank (+1,21%) included, if they will be put up for sale and if they will bring about significant synergies. This is what CEO Alberto Nagel said during a briefing on first quarter accounts better than expected.
Post it appreciates by 2,93%. On October 13, the company formalized the acquisition of a majority stake of 70% of the Agile Lab Group (“Agile Lab” or “Agile Group”) for a consideration of around 18 million. The remaining 30 percent of the capital remains with the founding partners, Alberto Firpo and Paolo Platter, who respectively maintain the role of Chief Executive Officer and Chief Technology Officer.
Not all accounts for the first nine months of the year have satisfied the market: Diasorin loses 7,65%, showing revenues up 17,9% to 1,01 billion euro and adjusted net profit down by 1,7% to 244 million. Guidance revised and increased.
Male stm (-6,96%). The French-Italian chip maker finished a good quarter but was cautious towards the end of the year amid general concern from analysts about the sector's prospects.
The framework does not smile at Moncler -4,21%, which also announced growing revenues.
The climate remains adverse to Amplifon -2,5%.
