Volatile session for Piazza Affari in the aftermath of the Fed. Last night the US central bank raised interest rates by 0.75% for the third consecutive time, taking them between 3% and 3.25%, which is the highest level since Crisis of 2008. The Fed has warned that monetary policy will remain tight with more rate hikes coming to tackle inflation. The dot plot shows that officials are aiming for new rate hikes to reach the terminal rate of 4.6% in 2023. Furthermore, the growth forecasts for next year have been revised downwards. After the new Fed tightening, traders are now betting that the ECB will bring the cost of money to 3% by June, double what was expected at the beginning of the month. Bloomberg writes, citing swap contracts linked to upcoming meetings of the European central bank. This brings the implied amount of the cumulative tightening to 225 basis points.
Today the focus is also on the Bank of England which, as expected, raised rates by 50 bps, while the Swiss National Bank raised them by 75 bps, thus bringing the cost of money back into positive territory.
The Ftse Mib, which after a weak start had returned to positive results mainly thanks to the rally of the banks, eventually gave way to sales closing at 21,799 points (-1.07%). On the parterre of Piazza Affari there were strong drops of about 6% for Stm and Diasorin. Moncler was also very bad (-5.9%).
On the other hand, purchases from banks are riding the expectations of further rate hikes by the main central banks. On pole today Unicredit (+ 5.32% at 11.25 euros) with its CEO Andrea Orcel who spoke on several issues at the 27th annual Financials Ceo Conference of Bank of America Merrill Lynch. The banker said the 2023 guidance will be substantially improved with the presentation of the third quarter accounts. (which will take place at the end of October) and said that UniCredit will reach “all targets even in the event of a mild recession”, adding that, should there be “a severe recession, we would be ready to face any shock and perform better. than the average of our competitors “.