(Il Sole 24 Ore Radiocor) – The European stock exchanges are in clear recovery after the slip of Wednesday 6 October. The slowdown in energy prices, thanks to Russia’s willingness to increase supplies of natural gas to Europe, the steps forward in the US towards an agreement to raise the public debt ceiling at least until December and the rumors about a new ECB bond purchase plan to prevent market turmoil when the emergency measures introduced for the Covid crisis will be withdrawn, they support the mood of investors, as well as the prospect of a virtual meeting between the US president, Joe Biden, and the Chinese leader Xi Jinping.
“We stay positive on equity markets in the medium term, economic and earnings growth remains robust », says Luigi Nardella of Ceresio Investors. “There volatility however – he adds – it remains high in the short term in a phase in which central banks are preparing to reduce monetary stimuli and interest rate curves adjust to higher inflation levels ». The concern, however, concerns the trend of earnings in the coming quarters, due to “bottlenecks and distortions created by the rapid recovery of economic activity, including rising energy prices”.
FTSE Mib stock market trend
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In Milan utilities do well, Saipem weak
At Piazza Affari the FTSE MIB is on the rise, mainly supported by utilities since Enel, Hera and Italgas. Moncler and Stellantis, which had been among the most penalized in the eve of the session, are also up, together with the entire European auto sector. The banking sector is positive but without momentum, while the pharmaceuticals Diasorin and Recordati are lagging behind. At the end of the Saipem price list.
The dollar takes a breath, the euro in the 1.155 area
L’euro slightly gains ground on the dollar, weak after Washington developments that indicate agreement between Democratic and Republican lawmakers on raising the US debt ceiling. “The uncertainty generated by the political impasse, which could eventually lead the United States to fail to meet its financial commitments, had stimulated demand for the dollar in recent sessions, thanks to its safe-haven status,” analysts say. by ActivTrades. However, «the outlook for the US currency remains bullish with rising inflation and expectations that the employment report will confirm a recovery in the labor market, thus allowing the Fed to begin tapering before the end of the year, ”they add.
Putin reassures about gas, crude oil prices are also down
Prices fall back european gas which, after gaining 40%, has reversed course, losing almost 20%, after Putin’s reassurances on Russian exports. “These words could also be an indirect invitation to speed up the approval of Nord Stream 2 by Germany and the European Commission – say the analysts of Mps Capital Services – signaling the Russian capacity and willingness to increase quantities”. The profit-taking on gas and the second consecutive week of strong rise in US official inventories also impact on the Petroleum, which moves down even if Brent remains above 80 dollars a barrel.
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