MILANO – 2.45 pm. An uncertain day for the European stock exchanges, with the main squares of the Old Continent moving not far from the highs. There are always two macro-themes to dictate the investors’ agenda: the inflation expectations very high and the repercussions that may have on the action of central banks. And, closely related, the problem of dear-energy, with the great powers moving to contain it.
The European stock exchanges travel in no particular order in the middle of the day, without particular jolts: Frankfurt slips into fractional red (-0.03%), Paris it remains positive by 0.12%, while London loses 0.17% e Milano 0.48%.
As the Financial Times, the euro went to a 16-month low against the dollar on the prospect that the Fed and the BoE could tighten rates – given the price rush – much sooner than the ECB, which still has in recent days reassured that the cost of money will not be touched in 2022. La Bloomberg believes that in light of the latest movements, investors’ bets on Eurotower could raise rates next year have practically disappeared, postponing the move to 2023. Yesterday theeuro it fell below the threshold of $ 1.13, while today it returned to $ 1.1335 ($ 1.1303 yesterday at closing). The currency is also worth 129.32 yen (129.44), while the dollar-yen is equal to 114 (114.53). The fact remains of a problem that also affects consumers. As Fabi’s general secretary noted, Lando Maria Sileoni, interviewed this morning during the broadcast Morning Five, “without robust economic growth and, therefore, without an increase in wages, the € 1,143 billion left by households on bank current accounts weighs, in fact, a hidden tax of about 35 billion per year, equal to 3.1% of inflation, the level recorded in October in Italy, while in the eurozone it is 4.1%, in Germany at 4.6% and in the United States at 6.2%. It is an issue that many ignore, but it is a very serious problem because the country is impoverished and we do not notice it “.
Instead, we look to Beijing and the United States for other news that characterize the other movement of the day, the drop in oil: China is in fact releasing some crude oil reserves, come on invitation from the USA who are thinking about such a move, with the immediate effect of bringing down the prices of crude oil. WTI is traded in Asia at 77.52 dollars (-1.07%), while Brent at 79.80 (-0.60%). The move, made already in recent months, is unclear whether it is linked to the request made by Joe Biden to Xi Jinping at their summit on Monday, reported by the South China Morning Post. The US has solicited similar initiatives with major consumer countries, such as Japan, South Korea and India to revive the economy. “We are working on their release,” said a spokeswoman for China’s National Food and Strategic Reserve Administration. Meanwhile, Biden has also opened an internal front, asking the Competition Authority to monitor the pricing policies of Big Oil, accused by the White House of unjustified increases in the distributor’s price.
Returning to the market trend, Wall Street restarts after the disappointing data of the requests for unemployment benefits, dropped by a thousand units to 268 thousand and worse than expected. On the other hand, the dynamics of the manufacturing index of the Philadelphia Fed in November were positive and higher than estimates, which rose to 39 points from 23.8 in October and 23 estimated. To report, last night, the collapse of Visa after Amazon he said he will no longer accept UK-issued credit cards from next year due to excessive fees.
In Asia it has been a volatile day for Tokyo. The Japanese stock market opened weak, then turned higher when it emerged that Japan is ready to launch a new package of economic stimuli, costing about 55.7 trillion yen (488 billion dollars). The figure, made known by the newspaper Nikkei, is much higher than expectations which indicated a total amount of 3-4 trillion yen. However, it was a blaze, in fact the Tokyo Stock Exchange it eventually lost 0.3%, resuming the weak wake of Wall Street. Hong Kong it fell more sharply (-1.29% final), mainly due to the technological sector. Worth noting is the new decline in Evergrande which also sold its residual 18% in the film production and streaming company HengTen Networks for about 273 million dollars: the real estate giant in crisis has formalized the sale of the share package of HengTen (+ 23.67%), the latest effort to raise capital with divestments to meet debts of over 300 billion. Founder Hui Ka Yan, meanwhile, took out 105 million in loans to help the group, pledging two luxury homes in Hong Kong, the magazine reported. Caixin, confirming the use of personal assets against the crisis, as requested by Beijing. The Chinese stock exchanges closed the session in negative: the Composite index of Shanghai loses 0.47%, slipping to 3,520.71 points, while that of Shenzhen it lost 0.65%, reaching 2,460.86.
Returning to raw materials, finally, theoro is down slightly this morning. Precious metal with immediate delivery drops to $ 1,865 per ounce, down 0.13% on Asian markets.
Stable it spread between BTPs and German Bunds, just over 120 basis points. Again on the foreign exchange market, but out of the basket of major currencies, it is reported that the Turkish lira it hit a new all-time low after the central bank cut interest rates for the third consecutive month from 16% to 15% against inflation hovering around 20% per annum. Immediately after the decision of the central institution, which implemented the wishes of President Erdogan, the Turkish lira lost 3.3% and was quoted at 10.97 Turkish lira for one dollar. This is the worst single-day dip in an emerging market this year. The lira has lost about a third of its value against the dollar since December and has weakened by more than 20% since the central bank began cutting rates in September. The 10-year government bond yield jumped 57 basis points to 20.44%.
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