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(Il Sole 24 Ore Radiocor) – Le European stock exchanges move lower in the last session of the week, as investors continue to evaluate the impact of interest rates that are expected to remain at high levels for an extended period of time. After the central banks of Switzerland and the United Kingdom left their reference rates unchanged yesterday, while that of Norway raised them by a quarter of a point, it was the Bank of Japan’s turn to update the market on its monetary policy. The Japanese central institute confirmed its ultra-accommodative position, signaling that it is in no hurry to withdraw the stimulus to the economy. Stocks and bonds thus remain under pressure, while government bond yields reach new highs: those on 10-year US Treasuries reached a new 16-year high of 4.508% and those on 30-year bonds reached their highest level in 12 years. The MSCI index on global stock markets has changed little (-2.6% weekly balance), while Asian stock markets have generally risen thanks to China’s commitment to supporting private investments. On the macro front, the manufacturing and services PMI indices of the main Western economies are expected today, in particular those of the Eurozone which had disappointed in the last reading. Meanwhile in our country the publication of GDP data from Istat is expected a few days after the presentation of the update of the Def (Nadef). Returning to Europe, there are declines FTSE MIB Milanese, like the CAC 40 of Paris, the DAX 40 of Frankfurt, theIBEX 35 of Madrid andAEXin Amsterdam.
The BoJ maintains the monetary status quo
The Bank of Japan, as expected, maintained its ultra-accommodative monetary policy, despite inflation in the country, which remains well above the 2% target and the great weakness of the yen against the dollar. The BoJ will continue to buy unrestricted bonds so that Japanese ten-year yields do not rise above 1%, the new red line set in July, and has kept the key short-term negative rate at -0.1%.
In Japan, inflation was stable at 3.1% year-on-year in August
Inflation in Japan remained stable in August at 3.1% year-on-year, excluding fresh produce, as in July, according to official data released hours before the end of the Bank of Japan (BoJ) meeting. Economists had estimated a mini-slowdown in consumer price growth, at 3% excluding fresh produce.
Weak Yen, rising oil prices. Gas prices are down slightly
On the currency market, the dollar consolidates its highs since March against the euro: the euro/dollar 1.0653 from 1.0660 on the eve of the closing. The yen is weak after the BoJ’s announcements: the Japanese currency slips to 157.76 for a euro (from 157.18) and to 148.05 for a dollar (147.42). The price of oil is rising while operators fear that the Russian stop on fuel exports could limit global supply: the November future on the WTI rises by 0.6% to 90.17 dollars a barrel, while the similar delivery Brent crude gains 0.44% to 93.70 dollars. The price of electricity fell by 1.9% to 38.35 euros per megawatt hour natural gas on the TTF platform in Amsterdam.
2023-09-22 06:45:00
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