Listen to the audio version of the article
(Il Sole24Ore Radiocor) – China’s maxi economic recovery plan does not warm up the European stock markets which open weakly. Declining in Piazza Affari FTSE MIBthey also give way Paris e Madrid, Frankfurt, London e Amsterdam. Eyes focused both on the Middle East, where diplomatic efforts are trying to contain the conflict, and on the imminent decisions of the central banks. Tomorrow will be a key day, with the ECB meeting from which a pause on rate increases is expected, while in the United States the GDP data will be published. Then continues a season of chiaroscuro quarterly reports, many better than expected, starting from technological giants such as Microsoft e Alphabet . In Italy, the auction of short-term BTp and BTp-i is expected for a total amount of up to 5.5 billion, while, on the macro front, the Ifo index of the economic climate in Germany is being released. On the Milanese price list there is the immediate sprint of Italgas, after the presentation of a growing quarterly. Thud for I connected while also sliding Tim after the letter from the French partner Vivendi to the board of directors in which he threatens legal action in the face of a possible decision on the sale of Netco without passing it to the meeting. Bad too Mps, Bper e Saipem. On the currency market the euro is just under 1.06 dollars while Brent drops 0.4% to 87.6 dollars. Gas stable at 49 euros.
Spread returns above 200 points
Slightly rising start for Lo spread Between BTp e Bund. At the opening of the session, the yield differential between the benchmark ten-year BTp (Isin IT0005518128) and the German equivalent duration stood at 201 points, compared to 200 points at yesterday’s close. There was a slight decline in the yield of the benchmark ten-year BTp, which achieved a first position at 4.83%, from 4.84% at the closing the day before.
Positive signals from Asian markets
The Hong Kong Stock Exchange, after four sessions in a row at a loss, returns to trading with a leap supported by China’s new measures to support the economy which include, among other things, an increase in the 2023 deficit, from 3% to 3 .8% of GDP, through the issuance of more sovereign debt worth 1,000 billion yuan (137 billion dollars) in the fourth quarter: the index HANG SENG in the early stages it recorded a jump of 2.79%, to 17,465.43 points. Positive signals also from the mainland Chinese markets which opened the session in positive territory, with good gains: the Shanghai Composite index rose by 0.82%, to 2,986.41 points, while that of Shenzhen showed progress of 0.79 %, at 1,815.13. The Standing Committee of the National People’s Congress, the legislative branch of China’s parliament, on Tuesday approved a plan to raise the 2023 deficit to around 3.8%, well above the 3% set in March , generally considered by the government to be a maximum reference limit.
Country Garden found non-compliant
Chinese developer Country Garden Holdings was meanwhile deemed to have defaulted on a dollar bond for the first time ever, underscoring its fall amid the broader real estate debt crisis that has rocked the world’s second-largest economy. Country Garden’s failure to pay interest within a grace period that expired last week “constitutes an event of default,” according to a notice to holders from trustee Citicorp International Ltd.
Tokyo closes higher at +0.67%
The Tokyo Stock Exchange closes higher with the index NIKKEI 225 which gains 0.67% to 31,269.92 points. Asian markets performed mostly positive in the wake of the increases recorded on Wall Street, after Verizon, General Electric and other large companies reported stronger than expected summer profits.
2023-10-25 07:30:00
#Stock #markets #weak #Europe #interest #rate #tensions #Middle #East #Spread #points
