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Stock exchanges today 4 November: the Fed towards greater caution on rate hikes

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Stock exchanges today 4 November: the Fed towards greater caution on rate hikes

MILANO – The European stock exchanges strengthened during the last session of the week. The spotlight is on data onUS occupation arrived today. In October, 261,000 non-farm jobs were created in the private sector in the United States, up slightly from estimates, while the unemployment rate rose to 3.7%. A sign of solidity in the labor market that could hardly contribute to greater caution on the part of the Fed in the path of rate hikes, after the last hike of 75 points, the third in a row, announced on Wednesday. The president of the ECB continues to talk about new rate hikes, Christine Lagardewhich always keeps the fight against inflation in its sights.

There are also signs of optimism in Asia on some rumors. First of all, the rumors about Beijing’s desire to gradually ease the anti-Covid restrictive measures and the indiscretion, reported by Bloomberg, on the early conclusion of the checks by US inspectors on Chinese companies listed on Wall Street. And so the Shanghai Composite Index rose by 2.43% at the close while that of Shenzhen rose by 2.68%. Hong Kong is up by more than six percentage points. In sharp contrast to Tokyo, which remained closed yesterday for holidays, ending at -1.68%.

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by our correspondent Gianluca Modolo

The price of gas is still growing: in Amsterdam the December contract rises by 5% to 132 euros per megawatt hour.

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European stock exchanges extend earnings

European Stock Exchanges Strengthen: Investors’ Attention Turns to Key Employment Data in the United States Today. In London the FTSE 100 rose by 0.97%, in Frankfurt the Dax rose by 1.31% and in Paris the Cac 40 gained 1.71%. In Milan, the Ftse Mib + 0.82%.

Lagarde (ECB): “Ready for new hikes against inflation”

The ECB is poised to tighten its monetary tightening if inflation continues its run and expectations rise. This was stated by the president of the ECB, Christine Lagarde, in her speech at an event hosted by the Central Bank of Estonia. “If we see a persistent rise in inflation and the risk of un-anchoring inflation expectations from the objective of price stability, we cannot wait until the full impact of the political measures already in place,” she warned. And she continued: “We should then take further action until we are more confident that inflation will return to target in time.” And again: “We will have to raise rates to levels that allow us to reach our medium-term inflation target of 2%. The final goal of our interest rate path is clear and we are not there yet”.

As for the economic trend, the ECB president said: “Even if the recent data on GDP growth have surprised on the upside, the risk of recession has increased”. And she added that the slowdown “could also be exacerbated by the tightening of global monetary policy”. Lagarde reiterated that “we cannot leave, and we will not allow high inflation to consolidate” and that “in December we will define the key principles to reduce the portfolio of purchased bonds”.

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The Italian composite SME at a 22-month low

The pmi indices in Italy are still decreasing. The S&P services index fell to 46.4 from 48.8 in September; the composite index, at 45.8 from 47.6 in September, is at its lowest in 22 months, down for the fourth consecutive month.

Positive start for the European stock exchanges

Positive trend at the start of the session for the European stock exchanges. The Cac 40 in Paris gained 0.97% at 6,303.66 points, the Ftse 100 in London gained 0.77% at 7,243.75 points and the Dax 30 in Frankfurt gained 0.48% at 13,192.56 points. Above the parity of 0.09% at 7,876.1 points the Ibex 35 in Madrid, while the Aex in Amsterdam advanced by 0.55% to 664.84 points.

Germany, sharp slowdown in orders to factories in September

Factory orders in Germany fell beyond estimates in September. The decline of 4% was higher than the expected 0.5% and the -2% recorded in the previous month.

Euro slightly up

The euro opens slightly higher but remains below par against the dollar. The single currency changes hands at 0.9774 dollars (+ 0.26%) and also rises on the yen to 144.64. Dollar down against the yen at 147.98. The pound, after the Boe’s maxi rate hike, recovers ground and travels up on the dollar (1.1206) and on the euro (0.8717). The yuan jumped more than 1% in the Asian session, reaching a week-long high, driven by expectations of an easing of anti-Covid restrictions in China.

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The spread opens slightly higher

The spread between BTP and German Bund opens slightly to 216 basis points, with the Italian ten-year yield at 4.42% on the secondary market.

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