MILANO – 9:50 am. Negative European markets at the restart of trade, with observers increasingly worried that supply chain problems – represented plastically by container traffic in many ports around the world – could slow down the growth of the companies that are announcing these days their quarterly accounts. Speaking to Bloomberg, chief strategist of Merck Finck, a German private bank, Robert Greil said that “we expect few positive surprises from the quarterly season, while there will be indications of caution from companies and few outlook improvements from analysts. “. Salman Ahmed of Fidelity international’s expectation is that “companies will have great difficulty with supply bottlenecks and rising producer prices”.
Milano marks a drop of 0.65% early in the morning, in line with the others: Frankfurt yields 0.5%, Paris 0.9% e London holds better at -0.2%. Futures on Wall Street they are negative. On Piazza Affari it must be considered that there is a negative impact of almost 0.6 percentage points from the coupon detachment of four big names: these are Intesa Sanpaolo, Generali, Banca Mediolanum and Unipol. Stellantis is little moved by the news that the company has signed a memorandum of understanding with LG Energy solution for the creation of a joint venture aimed at the production of lithium-ion batteries in North America.
Stagflation: three economists explain what it is and why it is so scary
by Giovanni Pons
In a context of great uncertainty, therefore, some signs of further apprehension launched Beijing: China’s GDP growth slowed noticeably the pace in the third quarter of 2021, rising by 4.9% per year, to the lows of the last 12 months, after the + 7.9% recorded in the second quarter. This was announced by the Chinese National Statistics Office, according to which economic growth was 0.2%, compared to 1.5% in the previous three months and the expected 0.5%. A negative mix of factors weighed on growth, including the energy crisis, fears of the explosion of a housing bubble after the Evergrande crisis and the outbreaks of Covid-19 that occurred in the third quarter in the country. The MSCI Asia Pacific Index, crushed by these concerns, started its first negative close in four sessions: the Tokyo Stock Exchange ended the session down 0.15%. Chinese price lists countered in closing: Shanghai loses 0.12% while Shenzhen gains 0.06%.
Slightly upward opening for the spread between 10-year BTPs and German Bunds, with a figure of 104.2, against 103.9 on Friday. The yield rises to 0.897%. According to what the Financial Times, the European Central Bank it would be thinking of modifying the rules according to which it buys government bonds as part of its quantitative easing, gaining flexibility above all as regards the slice of issues that belong to supranational organizations, such as the European Union. It would be a way to support the debt that will be issued in support of the Recovery Fund: Brussels is aiming for 80 billion this year alone and to become one of the main players in the public debt market.
Despite the Chinese slowdown, the start is markedly higher for the oil price which extends last week’s growth in the wake of rising post-pandemic demand and tensions in gas and coal prices that also extend to crude oil. Brent from the North Sea reached 86 dollars a barrel in early trading and is now trading at 85.7 dollars with an increase of 0.98%, updating the highs of the last three years. The WTI of Texas rises to 83.4 dollars. Prices oforo down on international markets. The immediate delivery metal is down 0.21% to $ 1763 an ounce.
Finally, on the currency, the start of the day was slightly down due to theeuro, which trades around 1.158 on the dollar, for -0.16%. The euro had closed the week just above the 1.16 dollar mark. Against the yen, the European currency stood at 132.35, just below the previous price. The dollar recovered fractions against the yen, at 114.30.
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