European stock exchanges rose on the last day of the week after a negative session and an overall uneventful octave. Even if the fears about inflation (leap beyond expectations of German producer prices to 3.8% on the month in October and 18.4% on the year) and on the arrival of a fourth wave of Covid-19, with possible new lockdowns are not dissipated, investors are looking for encouraging insights and cling to the hope that the recovery is sufficient to offset the effect of an imminent tightening of monetary policy. Support comes from the Asian markets, which are moving upwards, in particular Tokyo, which benefits from the confirmation of the maxi package of stimuli to the economy, and from the Wall Street futures, positive by almost half a percentage point waiting for the American president Joe Biden release the reservation on the next Federal Reserve number one (Jerome Powell’s mandate expires in February 2022). Lags further behind Hong Kong (HANG SENG), where Alibaba Group drops more than 10% after cutting revenue guidance: the e-commerce group expects revenue year-on-year in the fiscal year ending March to grow between 20% and 23%, the lowest pace since 2014 .. In Piazza Affari the FTSE MIB is led by oil stocks such as Eni and Tenaris. As for the other indices, Paris (CAC 40) and Madrid (IBEX 35) are the most lively while at the sectoral level purchases favor mining ed energy.
Tokyo closes at + 0.5%: € 430 billion incentive plan
The Tokyo Stock Exchange closed higher after the announcement of the final amount of the Japanese government’s economic stimulus plan. The flagship NIKKEI 225i index gained 0.5% to 29,745.87 points (+ 0.46% for the full week) and the broader Topix index rose 0.44% to 2,044.53 points . The Japanese Prime Minister, Fumio Kishida, announced that he has prepared an incentive plan for a total of 56 trillion yen (430 billion euros). A figure that should reach 79 trillion yen (about 600 billion euros) including the interventions of the private financial sector, through a multiplier effect. Investors in Tokyo have not reacted overly positively, as many economists doubt the plan’s big impact on Japan’s gross domestic product in 2022.
Oil: Brent above 82 dollars a barrel
Oil is also on the rise: the January WTI contract rises to 79.2 dollars, the Brent contract of the same maturity to 82 dollars. On the currency, the euro remains weak and changes hands at 1.1357 dollars (1.1345 at the previous close of the continental markets).
BTp, spread stable at 120 points
The spread between BTp and Bund is stable. At the start of trading, the yield differential between the ten-year benchmark BTp (IT0005436693) and the German security of equal duration is indicated at 120 basis points, the same level as the previous closing. Without prejudice to the benchmark ten-year BTp yield which stands at 0.93%, as in the last reference.