Piazza Affari and the European stock exchanges should open in positive territory, continuing yesterday’s rebound (the Ftse Mib index closed with + 0.64% at 25,736 points), corresponding to the halt in the rise in US bond yields. However, other reasons for concern remain, such as inflationary pressure, the risk of a shutdown in the United States and the economic situation in China.
In the US, there is still a blockade in Congress on federal state funding, with Republican senators opposing raising the debt ceiling to $ 2.840 billion to prevent the country from defaulting next month. Congress is expected to pass a bipartisan resolution by midnight Thursday to provide funding for government services through early December.
In China, the official manufacturing PMI confirmed its contraction, falling to 49.6 points in September, compared to the expected 50.1 points and the previous 50.1 points. The data confirms the contraction in manufacturing activity, as it is below 50 points, the dividing line between the phase of contraction (values below) and expansion phase (values above) of economic activity. The contraction recurred for the first time since February 2020, and was fueled by some factors, such as the jump in energy prices, pressures on both supply and demand, the higher prices of other inputs.
The Evergrande dossier also remains pending: some bondholders of the Chinese real estate developer have not received interest payments on a bond due on Wednesday, according to two sources familiar with the matter. Already last week, the group missed a deadline for a bond issue.
The day will then be enlivened by some macro data, among which inflation in France, Germany and Italy stand out. For the United States, the calendar includes a weekly update on new applications for unemployment benefits but also annualized GDP and the Chicago SME.