Banks are highlighted on the Ftse Mib
On Friday the utility sector stood out on the Ftse Mib (A2a among the best) and banking, the latter in the spotlight even after the quarterly in chiaroscuro of the US giants: if in fact JpMorgan and Wells Fargo have announced better than expected results, Morgan Stanley and Citigroup have disappointed expectations. They also shine Diasorina And Amplifier. As mentioned, the hypothesis that the ECB continues on the path of an aggressive rate hike is still supporting the credit sector, especially in light of American inflation. At the bottom of the list the oil with Tenari And Saipemin the wake of the decline in crude oil.
In the US, consumers expect inflation to rise
In October, Americans are proving more optimistic about the economy than the previous month, although they expect inflation to rise. The preliminary confidence index drawn up monthly by the University of Michigan was 59.8 points, after 58.6 in September; expectations were for a rising figure to 59. The component that measures expectations for the future fell from 58 to 56.2, that on the current situation rose from 59.7 points to 65.3. As for inflation, one-year expectations rose for the first time since March, from 4.7% to 5.1%, five-year expectations rose from 2.7% to 2.9%. In February 2020, before the start of the pandemic, the index was at 101 points.
Spread rises to 245 points, yields rise
On bonds, slightly up spreading BTp-Bund. The yield differential between the benchmark ten-year BTp and the same German maturity marked a last position at 245 basis points from 242 basis points on the eve. The yield of the benchmark ten-year BTp rises more significantly, ending the session at 4.80% from 4.71% yesterday.
Euro stable, gas prices down. Oil goes down
On the foreign exchange front, the euro is stable at $ 0.9742 (from $ 0.9740 closing yesterday). The single currency is gaining ground at 144.66 yen (143.54), while the dollar / yen ratio is at 148.48 (146.80). Fears of recession have pushed the price of oil down: the WTI in November traded at 86.06 dollars a barrel (-3.42%) and the Brent in December at 91.98 dollars (+ 2.74%). The price of natural gas fell by 9.3% below the level of 140 euros per megawatt hour.
In the US, retail sales unchanged but below expectations
Retail sales in the United States, in September, remained unchanged compared to August at 684 billion dollars, after + 0.4% the previous month (revised from the initial + 0.3%), according to what was announced by the Department of Commerce; expectations were for + 0.3%. Compared to a year earlier, recorded a + 8.2%, after the + 8.9% of the previous month. Excluding vehicle sales, the figure grew by 0.1% compared to the previous month, after -0.1% in August; excluding vehicles and fuels, the figure recorded an increase of 0.3%. Sales between July and September increased by 9.2% compared to the same period in 2021, after + 10.3% in June-August.
