(Il Sole 24 Ore Radiocor) – Interlocutory session for European equity markets, which closed little moved while investors continue to focus on inflation prospects and possible counter-moves by central banks. While in Europe the ECB has already reassured the markets by stressing that the conditions for a rate hike will not exist next year, in the United States the Fed could anticipate the tightening to the first months of 2022, also because the pressure on prices is beginning to be reflected on company balance sheets in the form of an increase in costs. The trend of Covid infections, which is growing throughout the Old Continent, is also under observation. Waiting for concrete developments, investors preferred to stay at the window: in Piazza Affari the FTSE MIB thus ended the day at + 0.07%, while on a continental level the black jersey went to London, which served the acceleration of the English inflation, which in October recorded the strongest growth in ten years. Few ideas among the blue chips of Piazza Affari, which have moved above all in the light of the reports of the investment banks. Ferrari thus gained ground thanks to the judgment of Morgan Stanley, who set a target price at the remarkable figure of 350 dollars by betting on the electric future of the Maranello house. In red instead Diasorin, on which Kepler Cheuvreux has cut the judgment to “hold” from the previous “buy”.
On the price front, inflation numbers are monitored: Eurostat confirmed that the annual inflation rate in the euro area in October was up to 4.1% after 3.4% in September. A year earlier it was -0.3%. In Great Britain, the numbers increased by 1.1% monthly, leading inflation to accelerate to 4.2% per annum, an important indication for the Bank of England, which surprisingly did not touch rates in the last meeting. The data has also made the sterling at its highest since February 2020 against the euro.
Ferrari stands out in Milan, while Prysmian does well
In Piazza Affari the best is Ferrari, which reached a maximum session of 236.9 euros, a value which further updates the historical intraday record. Support is given by a report by Morgan Stanley, which confirmed the “overweight” rating and raised the price target from $ 265 to $ 350, betting on the future of the electric car from Maranello. Volatile Telecom Italia despite the initial blaze of + 2%, after the weakness of last week and on the rumors of a possible revision of the contract with Dazn on Serie A. Prysmian and Stmicroelectronics also did well. Among the banks Unicredit is doing well with Jefferies which has raised the target price from 13.40 to 14.65 euros, confirming the buy opinion. Bene Generali after Caltagirone exceeded 7% in the capital, bringing the agreement (with Delfin and Fondazione CrT) to 13.81%. At the bottom of the Amplifon list, while Diasorin recovered part of the initial losses, with Kepler-Cheuvreux cutting the rating from buy to hold and the target price from 225 to 203 euros. Little move Exor on the day in which Il Sole 24 Ore remembers that in December the multiple vote is triggered, which opens up to various scenarios (the most “popular” seem to be the creation of a luxury pole, constant diversification and the reorganization of the chain control).
Spreads and BTp yields slightly up
Little moved trend for the spread between BTp and Bund on the secondary market MTS of government bonds. The yield differential between the benchmark ten-year BTp and the German bond of the same duration closed at 122 basis points from 121 at the previous closing. The yield of the ten-year benchmark BTp also rose slightly, reaching 0.98% from the 0.97% recorded at the last reference on the eve.
Dollar strengthens, sterling at its highest after UK inflation
More movement on the currency market, where the jump in British inflation gives the pound wings. The British currency is indicated at the highest levels since February 2020 at 0.8397 for one euro (0.8453 closing yesterday) and 1.3462 dollars (1.3428). The euro is worth 1.1303 dollars (1.1342 yesterday), after hitting a low from July 2020 at 1.1264, and 129.44 yen (129.94), while the dollar / yen ratio is at 114.53 (114.55).