by Laura Bonadies and Giorgia Colucci
Governor Powell will announce his rate decision on January 31st. Euro up 1.08. Oil rises with tensions in the Middle East. Spread at 150 points
3′ reading
(Il Sole 24 Ore Radiocor) – Le European stock exchanges they open cautiously in a week where investors’ eyes are focused on the meetings of the Federal Reserve (Wednesday 31 January) and the Bank of England (Thursday 1 February). Thus, the FTSE MIB of Milan is weighed down by the collapse of Saipem it’s yes General which, on the occasion of investor day, announced the launch of a new 500 million buyback plan.
Waiting for Fed and EU GDP
The Federal Reserve is not expected to proceed with a rate cut, but the market awaits indications on what will happen in the next meetings, when a softening of monetary policy is almost taken for granted. On the European front, the market is betting that the ECB could decide to cut rates as early as April; the probability of this happening is given at 87%. The spotlight will also be on the quarterly season which comes into full swing in Italy and reaches its peak in the United States where the technological giants (Apple, Amazon, Microsoft and Alphabet) are called to the test of accounts. As regards macro data, pay attention to the European GDP data for the fourth quarter estimated at +0.3% on an annual basis) and the data on American consumer confidence in January.
Saipem down after Morgan Stanley report and plant accident
Saipem is ballasted by a Morgan Stanley report according to which the Saudi Arabian government has decided that Saudo Aramco maintains maximum oil production capacity at 12 million barrels per day, canceling the 2020 directive which provided for an increase to 13 million. Also noteworthy is the news of an accident at the Woodside plant in Australia, with which the company had signed a contract in 2022. According to rumors, the Castorone gas pipeline installation vessel lost control of the materials it was installing off the Pilbara coast , forcing the evacuation of workers and damaging the plant.
Mib stands out on the Ftse Iveco Group . The banking sector is toned with Banco Bpm Bank, Intesa Sanpaolo e Banca Mps. Sales also up Moncler e Brunello Cucinelli.
Euro close to 1.08, oil rises
On the currency market, the exchange rate between euro and dollar it is close to the quota, 1.08 (1.0806 on the eve). Meanwhile, the single uniform exchange with the yen at around 159. Oil rising with the Brent Crude March which aims for 83 dollars a barrel and the Wti above 77. Price of natural gas falling in Amsterdam to below 28 euros per megawatt hour.
Spread at 150 points, 10-year yield decreasing
Yields still falling in the Eurozone in the wake of statements made by the governor of the Bank of France, François Villeroy de Galhau, on the probable cut in interest rates by the ECB this year supported government bonds. The yield differential between the ten-year BTp and the German Bund of the same maturity it remains stable at 150 points.
Tokyo on the rise, in China focus on Evergrande
The Tokyo Stock Exchange concluded the session with a slight increase (+0.11%), following the record set on Wall Street, with purchases focusing on the technology sector. Shares in property developer China Evergrande Group, the world‘s most indebted real estate company with over $300 billion in debt, remained suspended from trading after a Hong Kong court ordered the company to be liquidated due to insolvency. Other real estate companies led the decline in Hong Kong, where the benchmark Hang Seng index fell 2%. The ruling did not weigh on Chinese stock markets, galvanized by the monetary stimuli of the People’s Bank decided to breathe new life into the Dragon’s economy.
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