MILANO – An uneventful reopening is announced for European stock exchanges, judging by the trend of futures.
The week is crucial for Big Tech’s publication of quarterly heavyweight accounts: the web companies arrive at the appointment after the race started with the pandemic, when digital consumption has pushed their business, but with some concern to horizon. On the one hand there are in fact the problems of the global supply chain, primarily for chips, which could damage the prospects of Apple or Amazon. On the other hand, the slip of Snap that recently gave the accounts and crashed on Wall Street is school: the social network company explained how a change in the processing of data by iOs (the operating system of the iPhne) has curbed its advertising. In addition, management said it was concerned that global supply problems could lead advertisers to slow down advertising investments. For this kind of problem, we expect to see the reaction of Facebook and Google. For now, remembers MarketWatch, of the dozen companies that gave the forecasts for the quarter of the holiday season, eight have been unsatisfactory: more than past results, analysts will look to the short-term outlook to judge this round of quarterly.
The star of the markets is the Turkish lira, which for the third day in a row updates its historical low and reaches 9.7552 for one dollar. Usual to the ups and downs associated with President Recep Tayyip Erdogan’s massive layoffs of central bankers, Ankara’s currency was already paying by this time for a larger-than-expected rate cut. But the coup de grace came on Saturday, when Erdogan himself let the ambaciators of a dozen countries (including the USA, France and Germany) know that they are no longer welcome: while the EU speaks of authoritarian drift, traders now the official moves are expected to understand at what point of confrontation they will want to arrive. For the population, the concern mainly concerns the fallout on inflation: the local currency has already lost 23% since the beginning of the year, Bloomberg reports, gaining the little coveted palm of the most devalued of the emerging currencies.
It spread between BTP and Bund it opened at 107 basis points with the Italian 10-year yield at 0.96%. On Friday with the markets closed, S&P improved its outlook for Italy, which according to analysts should support the Italian debt.
The economist: “The S&P report card rewards Italy’s efforts”
by Vittoria Puledda
During the night, in Asia there was a leap of Evergrande (+ 4%) on the Hong Kong Stock Exchange in the aftermath of the announcement of the resumption of work on construction sites in Shenzhen and in 5 other Chinese cities to ensure the completion and delivery of over a dozen major real estate projects: the move, communicated in a social media post, it was taken to bolster market confidence after the $ 83.5 million overdue interest payment on Friday. Subsidiary Evergrande New Energy Vehicle (NEV) soars 17% after group president Hui Ka Yan said he wanted to make electric cars the business of driving within 10 years by ousting real estate. The Asian markets move mixed, with Tokyo which drops 0.8% as uncertainties for the October 31st elections begin to be felt; Shanghai is positive by 0.4% e Hong Kong it is flat.
Among the raw materials, the prices of Petroleum they rise again at the beginning of the week. The WTI marks an increase of 0.8% to 84.58 dollars a barrel, while Brent is gaining 0.6% to 86.22 dollars.
.