Bad day for the European stock exchanges that all open in red. At the heart of investor distrust are inflation and recession as consumer prices in Germany are expected, which could influence the European Central Bank’s moves. A loss that yesterday was limited by the intervention of the Bank of England which, after the maxi economic plan announced by the new government led by Liz Truss, announced its support for the government bond market. The pound is losing ground against other currencies.
Not even the close to the upside across the Atlantic was enough to encourage investors, with Wall Street, Dow Jones and S&P returning to see the + sign after six consecutive sessions. Meanwhile, the Federal Reserve Bank of Atlanta decided on a new 75 basis point hike on the price of money in November, announcing a further 50 point hike later in December. Rates at the end of the year are expected to hover between 4.25-4.5%.
The gas crisis due to the sabotage of the Nord Stream with the accusations between Russia and the United States and the new sanctions package launched in Brussels are important geopolitical scenarios, but the gas price in Amsterdam drops by 3%, equal to € 200 MWh.
The Volkswagen group flies to Frankfurt in its debut on the Stock Exchange with Porsche which opens with an ipo of 84 euros. The trading of the shares was expected at 82.5 euros, with a capitalization therefore of 78 billion. At Piazzaffari Leonardo with a + 1.80% tries to recover.
Better the BTPs whose rates are at 4.6% after hitting peaks of 4.8%. Meanwhile, the spread between Italy-Germany falls back to 240 basis points. Collapses H&M which after withdrawing from the Russian market loses 89% of its net profit in the third half.