MILANO – European stock exchanges are regaining confidence in the aftermath of a session experienced with concern over the acceleration in December by the Fed on the roadmap for rate hikes. The spotlight of the markets today is on the US employment report released by the US Department of Labor in December, one of the most followed indicators to test the pace of the American recovery.
The European indices are restarting today in no particular order: Milano earn 0.34%, London lo 0.07%, Frankfurt the 0.48% yields, Paris 0.06%. In Asia it is not very moving Tokyo, with the Nikkei closing at -0.03% while the government approved new restrictions in the country to contain the Covid emergency.
The Fed dresses up as a hawk and scares the world stock exchanges
by Vittoria Puledda
Among the macroeconomic data, German industry production in November recorded a decline of 0.2% monthly. The Federal Statistical Office adds that on an annual basis the decline was 2.4% while compared to February 2020, the month before the first restrictions taken in Germany due to the pandemic, the decline is 7 percent.
From the US, investors are watching with attention to the rise in mortgage rates, which are also rising in anticipation of the general rise in rates. This week, the levels hit a high since May 2020, with the fixed rate of a 30-year loan hitting 3.22% from 3.11% last week. An increase that could put the brakes on the dynamism of the American real estate market, which has experienced a strong acceleration especially in the last two years.
There is also a respite due to the rise in yields triggered by the possible moves by the Fed. The Italian ten-year falls to 1.26% and the spread it drops to 32 points after hitting 139 yesterday. Among the currencies, the euro is on the verge of 1.13 dollars, the euro / yen exchange rate is at 130.99 and the dollar / yen at 115.91.
Tensions and riots in Kazakhstan and production problems in Libya due to conflicts between militias push the price of Petroleum at 80 dollars a barrel. The Texas WTI changes hands at $ 80.09 (+ 0.79%) after gaining more than 6% in the last four sessions while Brent is trading at 82.6 (+ 0.8%). The increase in production decided by OPEC + is not enough to cool the market, which, according to experts, will be unlikely to be achieved in the short term.
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