(Il Sole 24 Ore Radiocor) – Third consecutive positive closure for European stock exchanges, after the sharp drop recorded in the session last Monday 20 September, despite the news coming from China, where the authorities are preparing for the collapse of Evergrande. Markets are focused on reassurances from the Federal Reserve. The US central bank has announced that “if the progress of the economy continues as expected, a moderation in the pace of the purchase of assets may soon be necessary”. The number one, Jerome Powell, however, reassured that the “tapering” will be gradual and will depend on the performance of the economy. Words of caution which have been appreciated by investors. European indices closed higher, with the exception of London which remained at the stake. The FTSE MIB closed above 26 thousand points and it spread it closed below 100 basis points.
“Although the reduction in bond purchases is now imminent and a growing number of Fed members expect a rate hike as early as 2022, Powell reiterated the central bank’s dovish approach – comments Luigi Nardella of Ceresio Investors – l ‘price increase is in fact considered transitory and linked to the bottlenecks of the restart ». The Fed will therefore remain «reactive and not pro-active, it will only increase the cost of money when it returns to full employment with inflation stable just above 2%. An approach that reassures investors, ”he adds.
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Wall Street also rose sharply after the Fed
Wall Street is also moving sharply higher, with investors reacting positively to the Federal Reserve’s decisions and forecasts. At the end, the Dow Jones rose by 1.48%. However, it remains in the background Evergrande, the Chinese real estate giant at risk of default. The Beijing government does not appear willing to save the company.
Euro remains below 1.17 dollars, yen weakens
On the foreign exchange front, the single currency changes hands at 1.1736 dollars (1.1721 at the start and 1.1731 yesterday at the end) and at 129.314 yen (128.88 and 128.6) with the dollar worth 110.175 yen ( 109.95 and 109.5). Finally, at the end of the European markets, the price of oil rose, which had shown a slowdown during the day: the November delivery contract on WTI gains 1.19% at 73.07 dollars a barrel and that of the same maturity on Brent of the North Sea 0.87% to 76.85 dollars a barrel.
In Milan the banks are doing well, Enel in evidence
At the head of the Ftse Mib, Unicredit and Banca Mediolanum closed. The purchases also rewarded Enel, on the day of the presentation of Gridspertise, the company dedicated to the digital transformation of electricity grids and when some indications arrived from Spain regarding the measures that the Madrid government wants to implement to reduce the cost of bills for citizens, who could have a lower impact than expected on Enel (through the Spanish subsidiary Endesa). After spending much of the session underdone, the oil sector reversed course in the wake of the new rise in the price of crude oil: Tenaris, Saipem and Eni. Out of the main basket, Ovs celebrated the accounts for the first half of the year above expectations and guidance for 2021, and on Aim Italia, Vetrya thumped despite the Stock Exchange’s ban on placing orders without price limits.