And Powell pushes Wall Street, S&P and DJs back to positive
Jerome Powell drives indexes on Wall Street. The chairman of the Federal Reserve confirmed that the central bank will slow down the pace of interest rate hikes perhaps as early as December: after four hikes of 75 basis points, analysts are now expecting a 50 basis point hike. The Dow Jones and the S&P 500, previously in decline, now gain 0.34% and 0.77% respectively. The Nasdaq, already positive, is now up 1.42%.
Europe positive, with Milan (+0.6%) being Tim
Braking beyond expectationsEuropean inflation, which could induce the ECB to slow down the pace of rate hikes, also contributed in the session of 30 October to support the stock exchanges of the Old Continent which all closed in positive territory. Despite Tim’s thump, after the definitive farewell to the hypothesis of a total takeover bid by CDP, in fact, the FTSE MIB index also snatches yet another gain at the end of the session, thus bringing the final balance for the month of November to +8,64%. In Milan, Tenaris stands out thanks to the rebound in oil and asset management with Banca Mediolanum. Purchases on Moncler together with European luxury stocks, on the hope that the Chinese government will ease the measures against Covid. Ko instead of Telecom Italia after the “freeze” of the undersecretary to the Presidency of the council, Alessio Butti, who branded the idea of ”still talking about a totalitarian takeover bid” as “fantasy”, while opening up to a partial takeover bid. Off the main list suffers Juventus Fc grappling with the change at the top of the company (but John Elkann has assured that the club “does not need capital”).
In Piazza Affari, Telecom collapses, more sales on Juve
At Piazza Affari, the Telecom Italia stock, already weakened by doubts about the future of the telecommunications company, as mentioned, fell out after the undersecretary to the Prime Minister, Alessio Butti, branded the idea of ”a fantasy” still talk about totalitarian takeover bid» on the group. The stock fell to its lowest since early November. Erg closes higher after the good performance on the eve of the debut day in the FTSE MIB. Moncler, on the other hand, rose together with European luxury stocks, on the hope that the Chinese government will ease the measures against Covid. However, as the end of the year approaches, investors make small portfolio adjustments and cabotage trades. Thus Unicredit and Stmicroelectron also rose. Out of the main basket, after a tonic start, Juventus Fc have started to descend again, after the stormy farewell of the board of directors.
Weak dollar, oil and gas prices are recovering
The US dollar is down, with the euro aiming for the 1.04 handle. News of China‘s accelerated vaccination campaign was interpreted by the market as a possible sign of Beijing easing its zero-Covid policy. «This news has been welcomed by the markets – comments from ActivTrades – with an increase in risk appetite which should, theoretically, and given the current correlations, push the dollar downwards. However, for now, any decline in the greenback has been offset by an increase in investor caution. On the energy front, the price of oil is on the rise with data on US inventories from the API which showed a drop in crude oil reserves and an increase in fuel reserves. The wait, then, is for the new OPEC+ meeting to be held over the weekend. The lack of agreement on the price cap at the European level restarts the prices of gaswhich trades in Amsterdam at 145 euros per MWh (+6.5%).
Spread up to 194 points at closing, yield at 3.88%
Sovereign fixed income prices traded on the electronic secondary Mts increased. The spread between BTPs and Bunds is slightly rising compared to the day before. At closing, the yield differential between the Italian 10-year benchmark BTP and the same German maturity is indicated at 194 points from the 190 basis points at the final on November 29th. The yield on Italian 10-year bonds is at 3.88% from 3.81% on the day before.