MILANO – The European stock exchanges restart slightly with the spotlight on the American midterm elections, with the polls that give the House towards a Republican majority and the Senate still in the balance. Investors then await US inflation data, arriving Thursday, which could provide important guidance to the Fed on upcoming monetary policy decisions. Closely followed the trajectory of the central banks: Luis De Guindos, vice president of the ECB, says that “surely” the ECB will start reducing the budget in 2023.
Sitting in chiaroscuro in Asia, with Chinese indices falling due to concerns related to the spread of Covid e Tokyo which closes instead at + 1.25%.
On the commodities front, the gas. In Amsterdam, at the start, the Ttf future gains 0.43% to 110.15 euros.
De Guindos (ECB): “Budget reduction certainly in 2023”
The ECB will initiate the reduction of the balance sheet (Quantitative tightening) and of the bonds held “certainly in 2023”. This was stated by the vice president of the central institute Luis De Guindos in an interview with Politico according to which the operation will take place “with great prudence”. “From my point of view we could start by not reinvesting in the maturing securities in the portfolio”, the so-called ‘passive’ Qt.
Bper collapses on the stock market after the nine-month accounts
The stock of Bper Banca in Piazza Affari is in strong loss, and is currently trading at € 1.9245 per share (-6.12% compared to yesterday). Bper Banca yesterday released the results for the first nine months of 2022.
Retail sales in Italy + 0.5% in September and + 4.1% annually
Trade in progress in September, despite the winds of economic crisis and concern for the purchasing power of families. But, in hindsight, it is precisely the higher prices that push sales, which – if taken in number – are actually stagnant. In September 2022, Istat estimates a cyclical increase for retail sales in value (+ 0.5%) while those in volume remain stationary. On a trend basis, in September 2022, retail sales increased by 4.1% in value and decreased by 2.7% in volume. Overall, in the third quarter of 2022, in economic terms, according to Istat, retail sales increased in value (+ 1.2%) and decreased in volume (-0.5%). Sales of food goods increased in value (+ 2.1%) and decreased in volume (-0.9%), as did sales of non-food goods (respectively + 0.6% in value and -0 , 3% by volume).
Departure in decline for the EU stock exchanges
start of session in decline for the European stock exchanges. The Cac 40 in Paris lost 0.42% to 6,389.55 points, the Ftse 100 in London 0.43% to 7,267.98 points and the Dax 30 in Frankfurt 0.16% to 13,512 points.
Also down were the Ibex 35 in Madrid, which fell by 0.33% to 7,936.40 points, and the Aex in Amsterdam, which lost 0.14% to 675.08 points.
Currencies, euros close to parity with the dollar
The euro / dollar exchange rate remains on the threshold of parity at the start of trading (at 0.998), with the market looking to the Midterm vote in the United States and the next moves by the ECB. In Asia, the yen is stable at 146.7.
Uphill start for the spread
The spread between Italian and German Treasury bonds widens to 214 points at the start of trading. The yield of the ten-year BTP is 4.46% that of the Bund at 2.32%
Oil down
Oil prices fall as markets start. Texas WTI crude fell 0.34% to $ 91.47 a barrel while North Sea Brent fell 0.26% to 97.67.