September 25, 2022

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European Central Bank confirms tightening, European stock exchanges closed down. Milan by – 4%. BTP returns soaring, spread up to 166 pips

Close in red for European lists after monetary policy calls for a country The European Central Bank, which met today with its Board of Directors Emphasizing the timing of the monetary strategy despite the war in Ukraine. Milan closed down 4.2%, Paris 2.8%, London 1.2% and Frankfurt 2.9%. performance Ten years BTPs Italians rose to 1.9% with the difference (spread) Compared to the German equivalent that expands to 163 points. In Avary Square Intesa San Paulo It lost 7.3%, Unicredit 7.1%. Iveco was also poor (- 7.6%). In profit, vice versa Leonardo (+1.5%), Tenaris (+1.6%) H Communications (+3.2%). Moscow Stock Exchange is always closed, The ruble recovers 1.6% against the dollar. Wall Street Index The S&P500 is down 1.3% and the Nasdaq is down 2%. jump Amazon Which yesterday announced the split of 1 to 20 shares.

Today, the European Central Bank left interest rates unchanged, the key rate remained at zero, the deposit rate at -0.50% and the marginal loan rate at 0.25% but stated that Net purchases through the App Program will close in the third quarterIf the incoming data will confirm the inflation scenario by adding that purchases using the pandemic program will end in March and that those with the app will reach 40 billion in April, 30 billion in May and 20 billion in June. “Any price adjustments will be gradual.” He reads a note from the European Central Bank. Frankfurt’s new inflation forecasts indicate 4.1% for the yearIt is followed by 2.1% and 1.9% for the next two years, compared to 3.2%, 1.8% and 1.8%, respectively, last December. The European Central Bank chief warned that inflation “could be much higher in the short term”. Christine Lagarde.

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“The pace of recovery will be slower than expected before the war,” he said. Lagarde. The central bank revised growth estimates for the euro area to 3.7% for this year (from 4.2% indicated in December), to 2.8% for 2023 (from 2.9%) and confirmed +1.6% for 2023. The eurozone “rose significantly” after the invasion Ukraine by Russia, evaluation Macroeconomic OutlookLagarde explained that they now risk adjusting downward. “Budget measures, including at the EU level, will help protect the economy,” the president said.

Yesterday, the US rating agency, Fitch, predicted an “imminent default” for Russia. Other analyzes frame a different situation, as long as gas and oil payments continue, the country could stumble financially. The Russian public debt Denominated in foreign currency is relatively modest, equivalent to about 50 billion euros. today is Rosneft, Russia’s oil and gas company Will repay a bond from 2 billion dollars, In addition to the accrued benefits. Bloomberg, citing people familiar with the matter, reported, while the company declined to comment. Bond holders will get the money in dollars. Rosneft’s move comes after energy giant Gazprom already paid $1.3 billion on Monday.

The euro fell against the dollar by 0.4%. After yesterday’s sharp declines, the recover oil 1% and is trading at $112 per barrel (Brent). Still low, and vice versa gas prices (-20%) to 124 euros per megawatt-hour. In the morning I put the Italian treasury Robots for a year worth 6 billion euros at -0.436%, down from -0.324% for the February position. There was a strong demand of 9.119 billion euros.

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