MILANO – 10:00 am. Scholarships seeking direction at weekly reopening: Milano rises by 0.15% after the first few bars, Frankfurt lime 0.05%, London salt by 0.1% e Paris 0.13%. Weak futures on Wall Street, after the mixed trend of trade in Asia. On the other hand, the turbulence on the bond market seems to be returning, after a period of high volatility linked to fears over the persistence of a high level of inflation that should lead central banks to act on rates. However, market expectations for price developments over the next decade remain close to their highest levels since 2006.
In the morning, the Asian stock exchanges moved in no particular order: that of Tokyo managed to close in positive despite the slowdown in the Japanese economy: the Nikkei 225 scored + 0.56% and 29.776 points and the Topix rose 0.39% to 2.039 points: the markets rewarded the season more than anything else quarterly reports which in most cases show positive news for company financial statements, often higher than forecasts. Chinese squares, on the other hand, are weak, with the index Shanghai Composite which lost 0.16%, while it Shenzen Component lost 0.2%. TO Hong Kong the Hang Seng index turned positive in the final at + 0.25%
Data from the East: Japan’s GDP is slowing down, China is surprising
The sentiment of investors was guided by the macroeconomic data published by the major eastern economies. In Japan, in particular, in the third quarter the economy contracted by 0.8%, beyond analysts’ estimates and in the wake of the reduction in consumption caused by the Covid-19 pandemic. On an annualized basis, the contraction is 3%. This is the first decline in two quarters for the world‘s third largest economy. Consumer spending in Japan – which contribute to 60% of GDP formation – fell by 1.1%, even in this case worse than forecasts, equal to -0.5%.
Also there China was expected to important surveys, which have traced a growth that has been stabilizing but a real estate sector that continues to be a source of headaches. Among the positive data there is undoubtedly the leap that industrial production marked in October: an annual increase of 3.5%, accelerating on the + 3.1% in September and on the + 3% expected by analysts. In the first 10 months of 2021, the National Statistics Office reported, growth stood at + 10.9% over the same period of 2020. Retail sales also recorded an unexpected rebound in October. They rose 4.9% yoy last month, which is a higher rate than in September (4.4%). Analysts had expected a slowdown (3.8%) in the midst of the resumption of the epidemic.
The slowdown comes from the real estate sector. The prices of new homes in China slowed down in October, settling on an annual basis at + 3.4%, slowing down from + 3.8% in September, in the midst of the turbulence that is characterizing the real estate sector, starting from crisis of Evergrande. The figure, released by the National Statistics Office as an average of the revelations made in 70 major cities in the country, is the weakest since January 2016. Only 13 cities indicated rising prices, compared to 27 in September.
Meanwhile, a new stock exchange has been set up in Beijing to help small and medium-sized businesses. There Beijing Stock Exchange, which joins those in Shanghai and Shenzhen, has opened negotiations with 81 companies in the midst of a crackdown on the tech giants that has ‘burned’ more than $ 1 trillion off their market value overseas. Continental exchanges are mostly off-limits to foreign investors. The ruling Communist Party has pledged more support for entrepreneurs who generate wealth and jobs, but is tightening control over tech companies and pushing them to invest their money in promoting Beijing’s business plans.
Oil is falling
Quotes down for Petroleum, waiting to see if the White House will draw on inventories to curb the price increases. The WTI is down by 0.67% to 79.13 dollars a barrel and Brent is down 0.65% to 81.64 dollars a barrel. Crude oil prices thus continue their downward phase after OPEC cut its forecasts on world oil demand for the last quarter of 2021 last week due to high energy prices, while maintaining the estimate of robust growth. above pre-pandemic levels in 2022.
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