MILANO – A day of waiting for the markets, awaiting the Fed’s monetary policy decisions. Tonight at the press conference, President Jerome Powell will speak, observers agree on the announcement of a 50 basis point hike for the reference rate, as already anticipated by President Jerome Powell a week after the mid-March meeting, the highest since May 2000. According to Allison Boxer, Us economist at Pimco, “policy decisions will hold few surprises” due to the “strongly ‘hawkish” communication adopted by Fed. Boxer notes that “all eyes, rather, will be on the guidance included in the statement and the press conference to get any hints on the pace in the future,” which must take into account inflation over 5% in the first quarter. as it could push “another 50 basis point hike in June”.
The lists move so little moved at the start. Milano salt of 0.12%, London drops by 0.02% of Frankfurt 0.13% e Paris grows by 0.09%. The Chinese financial centers and Tokyo are still closed for holidays.
Yields, the Italian ten-year towards 3%
Prospects for a rate hike continue to drive up government bond yields on the secondary market. The Italian ten-year is now one step away from 3%, after having reached its maximum since March 2020. The spread, the differential with the German bund, instead rises up to 193 basis points. Among currencies, the euro opens higher on the greenback above $ 1.05, but still remains close to the lows since December 2016, in a stronger dollar context as the Fed should raise the Fed rate by 50 basis points funds, the second consecutive rate hike and the largest since 2008.
The single currency is trading at $ 1.0521 and yen 136.92.
Uphill oil
Rising prices for the petorlio, in the day in which the Commission officially announced the new package of sanctions, the sixth, which also involves the import of crude oil from Russia. The American WTI with delivery in June gains 1.15% at 103.59 dollars a barrel, while the Brent from the North Sea, with delivery in this case in July, is close to 106 dollars at 105.98, an increase of 0. 96%.