October 3, 2022

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Stock exchanges, Europe is looking for a rebound. In Milan, he shoots Bper

(Il Sole 24 Ore Radiocor) – In one wake high voltage seatwith the Old Continent indices losing more than 2 points (Milan -2.7%), the European stock exchanges Recoil reinforcement, while Wall Street futures also rose wellafter tonight’s crash (-2% Dow and S&P below 4,000 points for the first time since March 2021 and Nasdaq -4.3% minimum since November 2020).
According to experts, this is a technical revival since then However, the apprehension did not diminish, on the one hand, due to the sudden rise in interest rates by the Federal Reserve, despite the assurances of US Central Bank President Jerome Powell (US inflation data tomorrow is important), and on the other hand he asks, given that in China, the largest importer of oil in World, the closures and restrictions made necessary by the increase in infections from Covid-19 continue. So investors fear an “imminent deterioration in economic conditions,” according to IG analysts.
Also in the background is the development of the conflict in Ukraine, which will also be among the hot topics of the meeting between Prime Minister Mario Draghi and US President Joe Biden in Washington. So I stood on FTSE MIB From Milan, back just above the 23,000-point threshold, the CAC 40 Paris, dated DAX 40 in Frankfurt FT-SE 100 London, andIBEX 35 Madrid andAEX Amsterdam.

Eyes on the Fed’s moves

To restore price stability, the Fed embarked on the steepest rate hike since 1980 accompanied by a rapid reduction in the balance sheet, which rose to $9 trillion with the pandemic. After raising interest rates by a quarter point in March, the US central bank adjusted them by another half a point in May and opened the door for a series of 50 basis point hikes in upcoming meetings. The pressure, the fear of economists and investors, risks sliding the US economy into recession, not yet fully recovering from the pandemic, or even worse, into stagflation.
The Federal Reserve, in its semi-annual Financial Stability Report, states that persistent high inflation along with a sudden rise in interest rates are among the main short-term risks to the US financial system. The central bank also warned that the war in Ukraine could affect financial stability as well as the global economy as noted by Treasury Secretary Janet Yellen.

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In Piazza Afari, Bper clicks after the calculations, good car

As for the titles, in Ftse Mib they are almost all positive, they stand out above all Pop eh bankOn the heels of first-quarter accounts that showed a drop in profits to 112.7 million, but still higher than expected. Also highlight SaipemThe company is accelerating the timing of sales and raising capital by $2 billion, which can be achieved by the summer, CEO Francesco Caio said in an interview with 24 single substrate. in the light Finecobank, after the quarterly accounts that highlighted the rise in profits and revenues. Car titles are also in good condition (good Pirelli and Con the other hand pending accounts, Stilants And IVECO Group), which on Mondays were among the most punished, along with active people. The latter continues today on the path of weakness, especially since after the sharp declines this evening, with crude oil losing more than 5 points, oil continues to decline. in layout Leonardo – Finmeccanicawhich was shocked by the achievements made following the session, unlike the rest of the list.

Spreads are dropping, but the 10-year yield is still above 3%.

Slight downtrend, after the start of the rally, due to the spread between BTp and Bund. The yield difference between the ten-year BTp standard (Isin IT0005436693) and the German term itself is indicated at 201 points, from 204 at the beginning and 203 at the previous end. While remaining above the 3% threshold, the benchmark 10-year BTp yield fell slightly to 3.08% from the previous 3.14%.

Oil is still low and the euro is stable

After Monday’s sharp declines, with crude losing more than 5 points, oil continues to decline: the June contract for West Texas Intermediate crude fell 1.64% to $101.4 a barrel, and Brent crude on July 1, 93% at $103.88.
In the currency market, the euro is not moving much against the dollar and is trading at $1,054 ($1.055 at the beginning and $1,057 at yesterday’s close) and at 137.136 yen (137,616 at the opening and 137.9 overnight). The exchange rate of the dollar against the yen at 130.09.