Adding to the tensions is the fact that the Bank of Canada yesterday blocked its bond purchase program and brought the date of the first possible rate hike closer. This could also be done by the US Fed: at the next meeting it should announce the gradual withdrawal of stimuli and the market expects two or three rate hikes already by the end of 2022. This is why there is also some concern about the ECB.
Focus on quarterly. In Milan from Unicredit to Moncler
Then there is the other big issue that keeps the markets on their toes: the performance of company accounts. This is a very delicate issue, because from the results that listed companies communicate, it is possible to understand how much damage the blocking of global supply chains is really doing. In the US to date, 82% of companies have beaten analysts’ estimates (positive data), including tech giants Facebook, Microsoft and Alphabet (Google). But an industrial group like General Motors has disappointed.
At Piazza Affari, focus on the quarterly reports of UniCredit, Saipem, Stellantis, Telecom Italia, Recordati and Moncler. Unicredit reported a profit of 3 billion in the nine months and 1.06 billion in the quarter (+ 55.6%): for the full year the group estimates profits at over 3.7 billion euro. Stellantis closed the third quarter with revenues of € 32.6 billion
euros, down by 14% compared to the pro forma results of 2020 (the year in which FCA and PSA were still two separate companies). Saipem has announced a plan to 2025 providing for an average annual increase in revenues of 15% and to bring the gross operating margin back to pre-Covid levels in 2023: in the nine months the group has lost 1.1 billion euros. Stmicroelectronics closed the third quarter with profits up by 95.6% and revenues up by 19.9%, thanks in particular to strong global demand and despite ‘revenues
lower than forecasts in the automotive sector, caused by a more marked reduction than expected in the production plant in Malaysia, due to the pandemic, as explained by the managing director Jean-Marc Chery.
The appointments of October 28th
A day full of macroeconomic indicators. From Spain comes the (delicate) inflation data for October (9.00), and from Germany the unemployment rate also for October (9.55). From Italy comes the confidence of consumers and businesses in October (10.00), the contractual wages of the third quarter (11.00) and the producer prices of industry and construction in September (12.00) ). At 11.00 the October Economic Confidence Index of the Eurozone also arrives. And, the highlight of the day, October inflation in Germany (2 pm): in curious coincidence with the ECB statement. Finally, requests for weekly subsidies (2.30 pm) and GDP arrive from the United States.
New government bond auctions. Spread rises to 116 points
After Wednesday’s half-yearly BoT auction (with rates out at historic lows of -0.55%), the Treasury holds auctions of medium-long term bonds: 5-year and 10-year BTPs up to 5.75 billion complexes you announced; 7-year CCTeu up to 1.25 billion. Meanwhile, the spread between BTp and Bund. The yield differential between the ten-year benchmark BTp (IT0005436693) and the same German duration is indicated at 116 basis points, above the 111 points of the previous reference. The yield of the benchmark ten-year BTp also increased significantly
scored a first position at 0.98%, from 0.94% recorded at the previous closing.