The day of the European markets strengthened during the session, after Asia closed mixed hoping for good sales data from the Golden Week in Chinese and in possible détente meetings between Beijing and Washington. Bond yields, sovereign bonds in particular, remain in the spotlight. September is the worst month for global bond performance, particularly since the Fed he made it clear that rates could rise further and remain high for a long time. A dynamic from which Italy does not escape, burdened indeed by the fact that the government has approved a Nadef with a further increase in the deficit/GDP. Today the spread between BTPs and Bunds is decreasing to 190 basis points, after reaching 200 the day before. Government bonds are benefiting above all – like share prices – from the slowdown in inflation in the Eurozone, which has reached its lowest level in two years and gives rise to hopes that the ECB will be able to ease its monetary tightening. Finally, we note the minimum Treasury yields for Btp Value on placement next week.
Key points
11:25
The spread returns to 190 basis points
13:06
EU stock markets consolidate increases after the drop in inflation
European stock markets continue to rise sharply in the middle of the session, driven by the positive signals arriving on the macroeconomic front. Eurostat estimates a slowdown in inflation in the Eurozone to 4.3% in September, from 5.2% in August: a figure that reinforces expectations that the ECB has reached the end of its cycle of rate increases. Paris advances by more than 1%, Frankfurt rises by 1.01% and London records an increase of 0.85%. Milan gains 1.15%.
11:25
The spread returns to 190 basis points
The spread narrows to 190 basis points by mid-morning. After the slowing Eurozone inflation numbers, all government bond yields drop: the 10-year BTP returns below 4.8%.
11:22
Egea chooses Iren, negotiations for the purchase of the Alba multi-utility continue
The management board of Egea, meeting in a joint session with the supervisory board, announced that it had chosen Iren as “preferred bidder”, the preferred bidder, as part of the procedure for the acquisition of the majority shareholding. The multi-utility based in Alba (Cuneo) states that Iren has “presented a complete proposal consistent with the negotiated settlement procedure of the crisis”. However, as at present there is no exclusive relationship, in line with the provisions of the procedure the management board also decided to allow Dk/Thaleia, the other competitor involved in the negotiation, to complete its offer by the next 27 October, if he so chooses.
10:36
Germany, slight drop in unemployment
The number of unemployed in Germany fell “only slightly” in September compared to August, by 69,000 units to 2.627 million and there are now 141,000 more unemployed compared to the same period last year: the Dpa writes, citing the Federal Agency for German work.
09:03
EU stock markets open cautiously higher, Milan +0.4%
Cautiously positive opening for European stock markets: Milan marks a +0.4% in early trading.
08:50
France, annual inflation stopped at 4.9% in September
The inflation rate in France remained unchanged at 4.9% in September on an annual basis compared to August, according to a preliminary estimate. The consumer price index decreased by 0.5% in September compared to the previous month.
08:26
The spread at 194 basis points at the opening, ten-year BTP yield at 4.85%
The spread between 10-year BTPs and Bunds is moving slightly higher, in the first findings on the Bloomberg platform: it stands at 194 basis points, one more than the previous day’s close. There was a slight decline, however, in the yield expressed by the Italian BTP which stood at 4.85%.
08:25
Tokyo closes weak
The Tokyo Stock Exchange closed the session with a slight decline. The benchmark Nikkei 225 index fell 0.05% to 31,857.62 points, while the broader Topix index fell 0.94% to 2,323.39 points.
08:21
Great Britain, GDP at +0.2% in the second quarter: data confirmed
UK GDP in the second quarter showed an increase of 0.2% in the final reading, confirming the initial estimate. In the first quarter growth was +0.1%. The annual figure amounts to +0.6%.
08:21
Retail sales decline in August in Germany
Retail sales unexpectedly fell again in August in Germany, with a figure of -1.2%, against an expected +0.3%. This is the third consecutive decline, after -0.2% in June and -0.8% in July. The annual figure is -2.3%, from -2.2% in July, against an expected -1%.
07:49
Oil prices showed little change
Oil prices showed little change in today’s trading, after yesterday’s sharp decline. The WTI, which had lost more than 2%, is stable today with a minimum of +0.12% at 91.82 dollars a barrel, while the Brent future marks -0.21% at 95.18 dollars. The price of WTI crude yesterday reached up to 95 dollars, the highest since August 2022, before falling back to 92.
07:49
Positive futures for Wall Street
Positive futures on the main US stock market indices. The contract on the Dow Jones marks an increase of 0.12%, that on the S&P 500 rises by 0.05%, while the future on the Nasdaq achieves a +0.17%.
07:49
Stellar invests 90 million in Argentinian Lithium
The Stellantis automotive group has invested 90 million dollars to purchase 19.9% of the shares of Argentina Lithium & Energy (Ale), with the aim of guaranteeing the supply of 15,000 tons of lithium per year and promoting the development of electric mobility projects. This is what we read in a note from the Argentine company, which in turn belongs to the Canadian mining sector holding Grosso Group.
The investment, specifies the note, will be made through the subsidiary Peugeot-Citroen Argentina SA. The president and CEO of Argentina Lithium, Nikolaos Cacos, declared that he “is pleased to have Stellantis as a partner in the future development of our lithium projects in Argentina”. “Together, we share the vision of building a sustainable lithium mining business for the future.
We look forward to a strong and successful relationship with Stellantis and are committed to providing a sustainable product that will contribute to the electrification of transportation and the protection of our atmosphere,” he added. Argentina Lithium and Stellantis, the statement concludes, will enter into a agreement to purchase up to 15,000 tonnes per year of lithium over a seven-year period.
07:48
Little changed futures for the EU
Futures contracts with stable prices for the main European exchanges. The contract for the Frankfurt Dax shows a +0.01%, the Ftse 100 is firm, the Euro Stoxx 50 marks -0.05%.