MILANO – A Fed with tones of “hawk” more than expected it upsets the markets that this morning all start again in decline. Yesterday, from the minutes of the last meeting of the Monetary Policy Committee of the Central Bank, the intention emerged to anticipate the rate hike sooner than expected, “The outlook for the economy, the labor market and inflation could justify an increase in interest rates sooner and faster than anticipated “, reads the minutes in which it is specified that according to some members of the central bank” it might be appropriate to reduce the balance sheet shortly after the start of interest rates “.
An acceleration that pushed the US indices down sharply, with the Nasdaq closing at -3.3% and which today pushes all exchanges down. In Europe Milano loses 1.23% at the start, London cede l’1,12%, Frankfurt 1.13% e Paris 1.27%. At Piazza Affari Carige goes against the trend, with a strong rise on the rumors of a Credit Agricole offer. Asia is also down. The Nikkei a Tokyo leaves 2.88% on the ground, marking the greatest decline in the last six months. Sales also fell in Seoul (-1.13%) and Sydney (-2.74%). Chinese squares hold their own (Hong Kong -0.13%, Shanghai -0.25%, Shenzhen -0.10%).
Meanwhile, German inflation marks a new record, reaching 5.3% in December 2021 and 3.1% considering the whole year, the highest since 1993. The index harmonized to European standards has instead dropped from 6% of November at 5.7% last month. On a cyclical level, prices increased by 0.5% based on the national index and by 0.3% based on the harmonized index.
Turbulence also on currencies. The possible rate hike ahead of schedule also pushes yields on the secondary Treasury market higher and the dollar hits a five-month high against the yen, at 115.90. L’euro instead it drops to 1.1288 on the greenback. Effect of yields also on Italian bonds, with the 10-year tasos rising to 1.294%., At the highest since July 2020, with the spread to 139 points.
Even the Petroleum feel the blow, retreating after three days on the rise. The American WTI drops by 0.6% to 77.4 dollars a barrel. Same drop for Brent which drops to 80.3 dollars.
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