Home » The stock exchanges today, 13 October. The lists are improving pending US inflation. The Fed pulls straight on rate hikes

The stock exchanges today, 13 October. The lists are improving pending US inflation. The Fed pulls straight on rate hikes

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The stock exchanges today, 13 October.  The lists are improving pending US inflation.  The Fed pulls straight on rate hikes

MILANO – The Fed is more determined than ever to stop inflation “at unacceptable levels”, the minutes of the Fed meeting on September 20-21 revealed Wednesday evening. Today, the data on American inflation can make this determination even more concrete: the expectation is that the general figure will slow down from 8.3 to 8.1%, with the slowdown in the energy component, but every surprise on the upside ( in particular for the core component, seen to strengthen from 6.3 to 6.5%) it could bring down the lists. “Inflation is too high and I strongly believe that bringing it back to our target is a necessary condition to achieve price stability and broad employment on a sustainable basis,” says Michelle Bowman, a member of the Fed board, to this day.

On the other hand, investors are already worried that the US rate run will overwhelm other central banks, forced to follow suit. Like the ECB, from whose president Christine Lagarde comes an appeal to “collaborate”, because the EU is dealing with a more pronounced risk-recession than in the US and with public debt tensions that have not dissipated. Another element of tension comes from the BoE, with the Truss government blaming the central bank (which tomorrow will stop extraordinary purchases of securities in support of the pound sterling and the UK debt) of any turbulence.

In this context, always with the theme of the energy crisis in the background, the European indices start down but then improve over the course of the day.

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Europe on the rise towards mid-session

The European stock exchanges take courage with Milan in the lead which rises by 1% with the Ftse Mib to 20,667 points. Frankfurt instead gains 0.77% and Paris 0.42%. London is more cautious (+ 0.16%). Futures on Wall Street remain positive pending US inflation, expected in the early afternoon. Energy-related stocks continue to do well, followed by financials.

Rising yields at the BTP auction

The Treasury today assigned a total of 8.75 billion medium / long-term BTPs at auction, with rising rates. In particular, 3.75 billion 3-year BTPs were placed with a yield of 3.57%, an increase of 80 basis points, and a coverage ratio of 1.5. 2.75 billion 7-year BTPs were also assigned, in this case with a 4.25% yield, up 74 basis points and a bid to cover at 1.45.

Also auctioned is 1 billion 15-year BTPs with a maturity of 2038, with a rate obtained by the Treasury of 4.82%, and the twenty-second tranche of 30-year BTPs (maturity 2039) for 1.25 billion, with a yield of 4.78%

Milan and Frankfurt reverse the course

Uncertain morning for European stock exchanges, which await the publication of the data on American inflation for September. After a negative start, the lists have recovered and are now mixed. The Ftse mib of Piazza Affari was positive, with + 0.18%, as was Frankfurt (+ 0.22%). On the other hand, Paris (-0.26%), London (-0.51%) and Amsterdam (-0.83%) remain below parity.

Gas, a rising price in Europe

Gas on the Dutch market TTF is on the rise. The European price of gas is 160.09 euros per megawatt hour (MWh).

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Opening in red for European stock exchanges

European equity markets open lower, pending the release of key US inflation data, following the trend of Asian markets. A few minutes after the start, the Dax index in Frankfurt drops 0.43% to 12,119.89 points, the Cac index in Paris drops 0.60% to 5,783.43 points, the Ftse 100 index in London moves back by 0.50% to 6,793.35 points, the Madrid Ibex index marks -0.66% to 7,213.49 points. Milan opened at -0.31% and is now down by 0.56%.

Germany, inflation confirmed at 10% in September

The inflation rate in Germany in September reached 10%, with an increase compared to the same month of 2021; the change is 1.9% on the previous month. This was reported by the German Federal Statistical Office Destatis, highlighting that energy and food prices weigh the most.

Weak opening in Europe expected

European stock markets seen in decline at the opening, with futures on indices losing ground, awaiting US inflation data today. The Frankfurt Dax futures mark -0.50%, while the London Ftse 100 futures lose 0.15%.

Exchange rates, euro stable against the dollar

Main prices little moved at the start of the day on the currency markets, pending the data on US inflation that will guide the Fed’s policies. The euro remains unchanged against the dollar at 0.9703, while on the yen it is at 142.47 and on the pound sterling rises by 0.1% to 0.8750. Dollar in turn fixed on the yen at 146.85.

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Wall Street, slightly higher futures

Wall Street futures are cautiously higher on the day of the dreaded US inflation data in September. Traders will also be monitoring weekly unemployment claims data. There is also expectation for the profits of the big banks, arriving tomorrow. Futures on the Dow Jones are up 0.21%, those on the S&P 500 by 0.22% and futures on the Nasdaq are up by 0.18%.

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