(Il Sole 24 Ore Radiocor) – The lees move carefully European stock exchanges on the day of the speech by the Federal Reserve chairman, Jerome Powell, at the Jackson Hole symposium, scheduled for 4 pm Italian. The FTSE MIB in Piazza Affari is slightly up, when the Dax30 in Frankfurt and the Cac40 in Paris travel on par. In the session of August 27, the tensions related to the attack at Kabul airport pushed Wall Street away from all-time highs with Tokyo falling in today’s session. At the same time, investors remain cautious in anticipation of any monetary policy news that may emerge from the central bankers symposium underway on Friday 27 August in Jackson Hole.
Maximum attention to information on tapering
At the center of attention is tapering, or the reduction of the purchase of government bonds (80 billion) and mortgage-backed securities (40 billion) for 120 billion per month, which should start before the end of the year. as hoped, also yesterday, by Robert Kaplan and James Bullard, head of the Fed in Dallas and St. Louis. Bullard highlighted the risks of rising inflation, which could become “a burden for everyone, especially for low-income families.” “There is an economic boom, there is no need for other stimuli,” he added. A tapering carried out quickly “would allow for greater flexibility on rates and, if inflation slows down, the increase in rates could be postponed”. Kaplan said that “the Fed should announce the tapering plan at the September meeting”, starting “around October”, adding that he still believes there should be “a first interest rate hike in 2022”. Both said that “the economy is learning to live with the coronavirus” and that the Delta variant will not affect the recovery. Rick Rieder, the head of investments of BlackRock (the largest asset management company in the world) also spoke on the subject, urging the US central bank to start the liquidity drainage program (which currently travels at the rate of 120 billions of dollars a month): “It’s time to start, the liquidity is too much,” he said in an interview with CNBC.
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The Jackson Hole symposium also affects European markets closely, although Christine Lagarde, president of the European Central Bank, will not attend the event. Some analysts report that the inflation levels between the two areas (2.2% in the Eurozone and 5.4% in the US) are so distant that they imagine a short-term separation of monetary policies with the ECB that could stay longer. expansive compared to the Fed.
In Milan the banks recover, the utilities contrasted
Among the Milanese stocks with the highest capitalization, Banco Bpm and Bper stand out. Stmicroelectronics recovers ground, while utilities are opposed, with Enel, Italgas and A2a. In the rest of the list, Cerved Information Solutions is up after Castor Bidco, which belongs to Andrea Pignataro’s Ion, raised the price of the takeover bid to 10.2 euros from the previous 9.5. The offer subscription period has been extended from 31 August to 9 September.
Semi-annual BoT auction for 6.5 billion, yield rises to -0.519%
The Treasury has auctioned six-monthly BoTs (maturity 28/2/2022) for € 6.5 billion. The request was equal to 8.32 billion euros (1.28 the coverage ratio). The yield rose slightly (+1 point), equal to -0.519 per cent. The settlement of the securities falls on August 31st.