Europe closed up with eyes on the ECB, Milan +1.38% with cars and utilities. Waiting for Fitch’s judgment on Italy


Europe closed up with eyes on the ECB, Milan +1.38% with cars and utilities.  Waiting for Fitch’s judgment on Italy
Written by aquitodovale

(Il Sole 24 Ore Radiocor) – Positive closure for the European stock exchanges in the last session of the week. Somehow absorbed in the words of the Fed’s “hawk” James Bullard, convinced that a rise in interest rates “up to the range between 5% and 7%” would be appropriate, today the statements of the chairman of the European Central Bank, Christine Lagarde. The head of the Eurotower spoke of “increased risk of recession” and reiterated the need to “further raise rates”, but without suggesting further accelerations. This reinforces the hypothesis, circulated as an indiscretion, that the ECB may decide to raise the cost of money by only half a point in December (barring surprises on the next reading of inflation). While awaiting Fitch’s judgment on Italy with the expectation of confirmation of the BBB rating with a stable outlook, the Ftse Mib closed on Piazza Affari with an increase of 1.38%, supported by utilities and the auto sector. In Paris the Cac40 rose by 1.04% and in Frankfurt the Dax40 by 1.16 percent.

Wall Street on the rise with eyes on the Fed

Uptrend on Wall Street, after two consecutive sessions down. Analysts reflect on the words of the “hawk” James Bullard, which also caused the increase in government bond yields. The central bank, he said, “still has a lot of work to do to bring inflation under control.” The president of the Atlanta Fed, Raphael Bostic, while welcoming the slowdown in inflation shown by data on producer and consumer prices as “a glimmer of hope”, reiterated that “further interest rate hikes will be necessary”. The Fed’s tightening of interest rates “could lead to a recession, but it’s still better than persistent inflation,” he said. Ending interest rate hikes “is not an option on the table,” said Mary Daly, president of the San Francisco Fed.

Cars and utilities do well in Milan, Trevi thumps

In Piazza Affari, a turnaround for oil companies after a brilliant start, with Tenaris and Eni losing momentum. The automotive world is at a rapid pace, with Pirelli & C, Cnh Industrial and Iveco Group. Enel did well in the aftermath of the news on the construction of a mega factory for photovoltaic panels in the United States. At the bottom of the Azimut and Leonardo – Finmeccanica price list. Telecom Italia has slowed down its pace which, as reported by The sun 24 hours, has entered into an alliance with Ericsson on the latest generation 5G. Trevi Fin slips (stop in volatility at -10%) after the go-ahead for the capital increase.

Trend of the Btp / Bund spread


Spread closes down to 187 points, yield falls to 3.88%

Closing down for the spread between BTp and Bund after the fluctuations triggered by the statements of the President of the ECB Christine Lagarde. The yield differential between the Italian 10-year benchmark BTP and the same German maturity marked a last position at 187 basis points from 191 basis points on the previous day. The yield of the 10-year benchmark BTP decreased more sharply, which settled at the end of trading at 3.88% from 3.94% at yesterday’s closing.

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Euro up slightly, gas falls

On the currency front, the euro is worth 1.037 dollars (from 1.032 dollars on the day before closing) and 145.07 yen (145.25), while the dollar-yen stands at 139.78 (140.68).
The price of gas in Amsterdam falls further to 111.4 euros per MWh (-1%).

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