February 5, 2023

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Stock markets in the red after the Bank of Japan’s move on bonds, the yen rose. BTp yield at 4.45%

(Il Sole 24 Or Radiocor) European stock exchanges The red is flat-out at one-and-a-half-month lows after a surprise move by the Bank of Japan changed the range of volatility in government bond yields, causing a The fall of local governments it’s a A sharp rise in the value of the yen. The move, unexpected by the markets, was interpreted as an opening to possible interest rate increases in 2023. The Japanese currency hit its highest levels since August against the dollar and for two months against the euro, with the greenback and the single currency declining by more than 3%. This led to a decline in the Tokyo Stock Exchange (-2.46%) and in the wake of other Asian stock markets. European government bond market yields, while on the performance of raw materials Concerns about new cases weigh on her Corona virus disease In China indicating a slow economic recovery.

Tokyo closes at -2.5% after the central bank’s decisions

The Tokyo Stock Exchange closed down 2.46% thereafter The BoJ changed the range of fluctuations in government bond yields. The Bank of Japan decided to allow the 10-year bond yield to swing 50 basis points up or down from its 0% target. The previous range was 25 basis points. The move is intended to mitigate the costs of the central institution’s long expansionary monetary policy and was interpreted as a first step toward opening up to more restrictive policy, even if the governor Kuroda It was stated that this step does not represent “an increase in prices, but rather aims to improve market performance, so that the effects of monetary easing within the policy of controlling the yield curve spread more easily through channels such as business financing.” Kuroda also said he is convinced that iInflation will fall below the 2% threshold. in Japan next year.

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the Asian stock markets It fell further amid fears of weak global economic growth as central banks raised interest rates to calm inflation. Chinese stocks fell onIncreased cases of COVID-19While investors did not feel comfortable with the central bank’s decision to keep interest rates on loans unchanged.

Slightly spread, earnings on BTP payouts for 10 years

Move a little It spreads between BTp and Bund In the context of a weak European fixed income that excludes the scenario of higher interest rates in the United States and Europe after the recent decisions by the Federal Reserve and the European Central Bank and after the Bank of Japan joined the “hawkish” moves of the central banks. sharply The standard BTP return for 10 yearswhich was up 4.475%.

Ftse Mib is all red, only Tim is saved

In Piazza Affari, the basket of 40 large companies is completely affected: mainly utilities (-2.5% A2a, -1.9% Enel and Italgas) but also industrial stocks such as Stellantis, Iveco and Interpump. The worst is Saipem (-2.9%). Nexi’s contraction (-2%) yesterday, the protagonist of the bounce linked to the Italian government’s choices on changes to rules around digital payments. It was banks and managed savings that limited the damage, while Tim, after a stellar start, slowed (-1%) despite market interest in the evolution of the infrastructure network profile.