Home » Bags, December starts well. Milan at +0.6%. Powell: Too early to say when we will cut rates

Bags, December starts well. Milan at +0.6%. Powell: Too early to say when we will cut rates

by admin
Bags, December starts well.  Milan at +0.6%.  Powell: Too early to say when we will cut rates

Wall Street in rialzo

Wall Street closes positive. The Dow Jones rises by 0.82% to 36,245.17 points, the Nasdaq advances by 0.55% to 14,305.03 points while the S&P 500 makes progress by 0.59% to 4,594.63 points. All this after the head of the Fed Jerome Powell, during an event in Atlanta, declared that “it is premature to say with certainty that the process of increasing interest rates has concluded”. The president of the Federal Reserve added that “it is too early to say when we will begin to lower rates.”

Inflation slowed, causing yields on 10- and 30-year Treasury bonds to hit their biggest monthly decline since 2019. The Federal Reserve’s next decisions on interest rates are expected in less than two weeks: on the last two occasions, rates were confirmed at 5.25%-5.5%. Traders no longer believe that interest rates can be raised any further and continue to bet partly (44.8%) on a first rate cut as early as March. The US manufacturing activity index fell more than expected in November. The data, drawn up by IHS Markit, which measures the trend, fell, in the final reading, to 49.4 points from 50 points in October, while the forecasts were for a figure of 49.6 points.

Bitcoin at the top for 19 months

Bitcoin is rising to more than 38,100 dollars, after reaching 38,800 dollars, the maximum price reached in the last 19 months. Cryptocurrencies, in general, continue to enjoy widespread optimism about the next moves of US regulators, who should soon approve the first ‘spot’ ETFs on bitcoin, i.e. a regulated financial instrument whose price replicates the value of the underlying assets, in in this case the market price of bitcoin. The introduction of ETFs would attract a new wave of investors.

See also  Emilia flood, Salvini pressing on the commissioner: "The sooner it is done, the better"

Eurozone manufacturing PMI index rises to 44.2 in November

In November, the Eurozone manufacturing sector continued to contract, but the decline in production, new orders, purchasing activity and inventories slowed, thanks to greater corporate optimism which rose to a 3-month high . The HCOB PMI Index for the Eurozone manufacturing sector stood at 44.2, up from 43.1 in October and at the highest level since May. Among the eight nations included in the HCOB Eurozone manufacturing PMI, six recorded a contraction. Austria was the nation with the worst performance, followed closely by Germany and France. However, all three countries recorded weaker rates of decline, and this was also the case for the Netherlands and Spain. However, the contraction of the Italian manufacturing sector intensified.

Spread at 173 points. Euro loses share, oil slows down

The spread between BTp and Bund is down. The yield differential between the benchmark 10-year BTp and the German equivalent duration fell to 173 basis points. On the currency, the euro loses share to 1.08 dollars (from 1.09 dollars at the start and at the previous closing) and around 160 yen (from 161.37 on the day before). The price of oil is weak, after a slow start, in the aftermath of the OPEC meeting which announced a further cut in production. The January future on the WTI stands at around 76 dollars a barrel, while the similar delivery on Brent is around 80 dollars. Natural gas in Amsterdam rises to 43 euros per megawatt hour. Gold gained $32.90, or 1.61%, and finished at $2,071 an ounce, a new record close.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy