MILANO – 11.30 am. The Ukrainian thaw does not convince the US or even the financial markets, judging by how the start of the day is going to European trade. The Old Continent indices open weak and mixed after the uncertain close of Wall Street. The New York Stock Exchange was conditioned by the publication of the FOMC minutes: the monetary policy arm of the Fed sees a faster rate hike appropriate if inflation does not slow down, without taking it for granted. However, in the minutes there are no particular indications on the timing and quantity of the increase. But at this point many analysts hypothesize a rise of 50 basis points at the end of both the next meetings, namely that of March and May. The last time the Fed raised rates by 50 points twice in a row was 1994.
The Ukrainian front therefore returns to warm up while rumors of attacks in the Donbass chase each other and the squares of the Old Continent move weakly. Milano yields 0.4%, London 0.6%. Has Frankfurtjust above par, with Paris which rises by 0.2%.
The Asian stock exchanges proceed mixed, Hong Kong lost 0.40%. In China, the Shanghai composite index rose by 0.12%, while that of Shenzhen rose by 0.21%. On the Tokyo Stock Exchange, the Nikkei 225 benchmark index closed at -0.83% at 27,232.87 points, while the broader Topix index lost 0.79% to 1,931.24.
It spread between ten-year BTPs and German Bund counterparts, it opens at 164 points, slightly higher than yesterday’s closing at 163 points. The yield on the spread remains stable at 1.903%. The changes in government bond yields “were contained” compared to risk-free rates “, widening by 7 and 3 basis points” for France and Spain “and” by about 7 basis points “for Italy, the ECB writes in the Economic Bulletin posted this morning. Growth in the euro area, after the slowdown in the fourth quarter in which it nonetheless recovered its pre-pandemic activity levels, “should record a strong recovery during 2022” and also working conditions “improve further, although wage dynamics remains contained overall “, notes the Central Bank, evoking upside risks to inflation, which however tends to stabilize on the 2% target. In this context,” the Governing Council considers it more necessary than ever to maintain a flexible and open attitude to all options in the conduct of monetary policy “
As often happens, in a moment of tension theoro which is the ultimate safe haven asset: immediate delivery bullion earns 0.3% at $ 1,875 an ounce. Quotations of Petroleum down at the start of the day. The reference WTI crude oil dropped 1.38% at 92.40 dollars a barrel. Brent loses 1.37% to 93.52 dollars a barrel. To affect the announcement of a possible agreement on the Iranian nuclear program.