New signs of strength for equity markets in the start of the octave, while commodities suffer thanks to the risk that the tapering by the Fed will arrive earlier than expected in light of the US employment boom.
New tops for the Ftse Mib, Unipol and Stellantis fly
Piazza Affari sails to the new annual tops despite the weakness of banks and oil this morning. The Ftse Mib, back from + 1.3% on Friday that pushed the index into the 26 thousand area, extends again to 26,088 (+ 0.34%) by updating the multi-year highs since 2008. Investors continue to ride the long wave of strong US labor market data. In July, the United States showed a growth in jobs to the top in almost a year (+ 943 thousand units) and the unemployment rate fell faster than expected. Dallas Fed Chairman Robert Kaplan believes the central bank should start reducing its asset purchases soon. The positive July employment report confirms that the US labor market is on the right path to return to pre-pandemic levels and there are those who see the Fed announcing the reduction in purchases already in the September meeting with tapering that could start as early as December or early 2022.
Among the individual stocks of the Ftse Mib, Unipol rallied this morning (+ 1.96%). Stellantis also did well (+ 1.02%), which flies with momentum over 18 euros. Today AlphaValue raised the rating on Stellantis to buy. Promotion also for Pirelli (+ 1.46%) on which JPMorgan has brought the recommendation to neutral.
Interpump (-0.95%) and banking stocks (-1.8% Bper and -1.24% Banco BPM) are among the minus signs, which retraced after the exploit on Friday. The trio made up of Tenaris (-0.9%), Saipem (-0.31%) and ENI (-0.42%) is also bad with the drop in oil that is felt throughout the European oil sector.
Flash crash for gold and silver
Strong volatility overnight for precious metals between tapering risk and US dollar rise. There was a $ 60 splash in minutes for gold with investors who fear that the Federal Reserve will soon begin to withdraw its massive monetary stimulus. The spot bullion price fell over 4% and silver plummeted to 7% with better-than-expected US employment data raising alarm among investors.
Fears that are also reflected in the US dollar. The The greenback has gone up against the euro for four months right on the prospect of a Federal Reserve tapering.
In July, the United States showed a growth in jobs to the top in almost a year (+ 943 thousand units) and the unemployment rate fell faster than expected. Dallas Fed Chairman Robert Kaplan believes the central bank should start reducing its asset purchases soon.
Oil also suffers
Among the commodities, also the predicted weakness in oil with Brent and WTI both down by around 3 per cent with prices falling to the area of $ 68.6 and $ 66.2 per barrel respectively. In the background also remains the question of the spread of the Delta variant and the possible repercussions on the economic recovery with new restrictions decided by China and Australia.