(Il Sole 24 Ore Radiocor) Closing contrasted for Europe with positive Milan and that at the end has lengthened the pace. While Wall Street proceeds little move but in decisive recovery from the lows after a round of light and shadow data, in Piazza Affari the FTSE MIB closed up, with a new brilliant performance by Telecom Italia, on the rumors of a possible rise in the price of Kkr’s offer, even if the US fund has denied this possibility. In Frankfurt the DAX 30 was back, on the day of the publication of the Ifo index on business expectations, which also dropped in November. In Paris the CAC 40 remained on par, London positive, Madrid weak. When the situation of the pandemic continues to cause concern, with the increase in Covid-19 cases in many European countries, on the macro front, the US GDP in the third quarter rose by 2.1%, slightly below the estimates, lower than the Durable goods orders are also forecast (-0.5% in October), when new weekly requests for unemployment benefits fell to 199,000 units, the lowest since 1969. Consumer confidence fell, while inflation Pce in October grew by 0.6% compared to the previous month, against expectations of + 0.4%, and compared to a year earlier it increased by 5%, the highest since December 1990, after + 4.4% of the previous month.
Returning to the headlines, in Piazza Affari, a purchasing session for Banca Mediolanum: the founder and honorary president Ennio Doris passed away at the age of 82. Unicredit is also highlighted, as the date of December 9 is approaching, when the top management of the institute will illustrate the future strategy to the financial community. On the foreign exchange market, the single currency fell below $ 1.12, to its lowest since early June 2020, and traded at $ 1.1196 (1.1241 at start and 1.1267 yesterday at closing), and at 129.184 yen. The greenback is worth 115.382 yen (114.86 and 114.97). Crude oil prices rose slightly as US oil inventories rose for the seventh time in the past 10 weeks, as experts expected a second consecutive decline. The January delivery contract on WTI rises by 0.51% to 78.9 dollars a barrel and that of the same maturity on Brent by 0.56% to 82.77 dollars a barrel.
US GDP under estimates, but requests for subsidies at a minimum since 1969
On the Wall Street swing, with tech stocks still under pressure (-0.88%) due to the rise in Treasury yields, triggered on Monday by US President Joe Biden’s decision to appoint Jerome Powell for a second term at the head of the Federal Reserve Reserve. Investors are worried that the Fed may decide to raise interest rates as early as the first half of 2022, given inflation at the highest levels of the last 30 years, and are watching with fear the increase in Covid-19 cases and the new ones. restrictions imposed or under discussion in some European countries. Overall positive macroeconomic data published in the premarket: new weekly requests for unemployment benefits fell by 71,000 units to 199,000, the best figure since November 1969. Third quarter GDP (at second reading) increased by 2.1% , after 2% of the preliminary estimate, against expectations for + 2.2%. Durable goods orders fell by 0.5% in October, the second consecutive decline, against expectations of + 0.3%. The trade deficit in October (preliminary estimate) fell by 14.6% to 82.9 billion dollars, against expectations for 94.6 billion.
US, core inflation jumps to its highest since 1990
Among the other US data published, inflation stands out, which in the United States increased in October, reaching its highest levels since December 1990. The measure preferred by the Federal Reserve to calculate it, the PCE (personal consumption expenditures price index), grew by 0. , 6% compared to the previous month, against expectations for + 0.4%, and compared to a year earlier it increased by 5%, the highest since December 1990, after the + 4.4% of the previous month. The “core” component of the data, net of volatile elements, grew by 0.4% compared to the previous month and by 4.1% compared to a year earlier, after 3.7% in the previous month, also the most high since December 1990. The Pce value is contained in the data released by the Department of Commerce relating to personal income and consumer spending. The Fed considers 2% the optimal level, but has pledged to let it go beyond this threshold for a certain period of time to promote maximum employment.
Personal income and consumer spending, on the other hand, increased more than expected. The Commerce Department reported that personal incomes increased by 0.5% ($ 93.4 billion), consumer spending increased by 1.3% ($ 214.3 billion). Expectations were for an increase of 0.2% and 1% respectively. Incomes in September were confirmed down by 1%, expenses confirmed up by 0.6%. The final index on confidence compiled monthly by the University of Michigan was equal to 67.4 points, after the 66.8 of the preliminary reading, lower than the 71.7 of the final reading in October, against expectations for a figure of 66, 8.