MILANO – Europe’s positive opening does not last long, driven by the fact that in the USA there was an agreement to avoid the freezing of federal spending, the so-called “shutdown” which prevents the portfolio from being expanded in the absence of a political agreement on the budget. Among the measures envisaged – in reality to survive until mid-November, then the problem will arise anyway – also the discussed definancing of support for Ukraine. The indices of the Old Continent turned downward after the Eurozone manufacturing PMI data, negative for the fifteenth month in a row (in this context, Italy recovered as well as on the employment front), then closing the day in sharp decline.
It should be noted that the World Bank has cut its forecasts growth of China (4.4% in 2024) and warning that the performance of developing Asian economies is destined for one of the lowest rates of the last five decades, thanks to US protectionism and the growing burden of the cost of debt. Finally, the words of the Fed governor, Jerome, were awaited Powell.
17:54
Europe closes in sharp decline
European stock markets closed negative, weighed down by the disappointing data on the performance of the PMI index in September. Milan, black shirt, lost 1.39%. The Italian stock exchange paid a premium for the placement of the BTP value, which convinced some investors to move resources from the stock sector to the bond sector. London did little better than Piazza Affari, which lost 1.27%. Smaller losses for Frankfurt (-0.92%) and Paris (-0.95%).
15:41
Wall Street opens mixed
Wall Street opens the first session of October weak and mixed in the wake of the rise in the 10-year Treasury rate, to the highest since 2007, while investors await the intervention of the Fed President, Jerome Powell, for clues on the path of rates of interest to the central bank. In early trading the Dow Jones lost 0.06% to 33,486.81 points, the S&P 500 was flat at 4,289.38 points and the Nasdaq rose by 0.33% to 13,262.32 points. The yield on the 10-year Treasury rose to 4.6371%, once again reaching the highest levels of the last 16 years, while the yield on the 2-year bond, which better reflects interest rate expectations, remained above 5% .
12:38
EU price lists worsen
European stock markets worsen and turn negative after PMI data showed that the bloc’s manufacturing sector remains in contraction for the fifteenth consecutive month, therefore indicating a sharp deterioration in the health of the sector. “Throughout the third quarter the manufacturing PMI was well below the 50 mark, so we are quite certain that the manufacturing recession continued during that period,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commenting on the data on the index which decreased to 43.4 points in September (in line with expectations). The UK manufacturing PMI also remains in contraction, rising last month to 44.3 points but still among the weakest values observed in the last 14 years. London loses 0.37%, Frankfurt 0.16%, Paris 0.29% and Madrid is flat. Milan shaves 0.07%.
11:22
Milan turns downward after the PMI indices
Stock market in negative mid-morning, with the Ftse Mib index marking -0.10% at 28,216 points. Piazza Affari, like the other stock exchanges, blames the unpromising macro data relating to the manufacturing PMI indices which show a decline in September for the fifteenth consecutive month in the eurozone. Energy stocks fell on the list, with Enel -0.9%, A2A -1.1%, Hera -1.3%. Moncler, Amplifon, Recordati are also down. MPS up +2.4%, with BPM and BPER among the banks; Iveco up +1.4%.
09:47
EU stock markets start on a positive note
European stock markets open higher after the agreement in the USA which avoided the shutdown. Attention now shifts to the intervention of the president of the Fed, Jerome Powell, who could provide indications on the next moves on the monetary policy front. Positive start for Paris (+0.41%), Frankfurt (+0.35%) and London (+0.06%).
09:46
Eni, gas basin discovered in Indonesia
Eni has announced an important gas discovery approximately 85 km away from the east coast of Kalimantan, Indonesia. Preliminary estimates from the Geng North-1 well drilled in the North Ganal license indicate total volumes of 5 trillion cubic feet of gas (about 140 billion cubic meters) with a condensate content of up to about 400 million barrels. The data acquired, we read in a note from the energy group, will allow the study of options for accelerated development. The well, drilled to a depth of 5,025 meters in 1,947 meters of water depth, encountered a gas column of approximately 50 meters in Miocene age sandstones with excellent petrophysical properties, which were the subject of an intense acquisition campaign data. For a complete evaluation of the discovery, explains the note, a production test was successfully carried out which, although limited by the capabilities of the test equipment, allowed us to estimate a well flow rate of 80-100 million cubic feet/day (approximately 2.2-2.7 million cubic meters per day) and 5000 -6000 barrels per day of associated condensates. The ongoing exploration campaign, together with the recent acquisitions, is in line with Eni’s transition strategy, to progressively lead Eni’s portfolio in 2030 to a 60% mix of gas and LNG, increasing the contribution of LNG equity.
09:06
The spread starts with little change at 192 points
Spread between BTPs and Bunds slightly decreasing at the opening to 192 points, compared to 194 at Friday’s closing. The 10-year yield is almost unchanged at 4.795%, compared to the previous 4.78%. Today the placement of the Btp Valore, a five-year security dedicated to small savers, begins. The June issue had achieved record orders of 18.2 billion euros.
08:16
Futures rising on Wall Street, fresh from the worst month of the year
Futures rising on American stock market indices in today’s trading, after the worst month since the beginning of the year ended. The future on the Dow Jones marks an increase of 0.47%, that on the S&P 500 rises by 0.50%, the Nasdaq accelerates to +0.71%.
08:15
Futures up for EU stock markets, euro down slightly
Futures on the indices of the main European stock exchanges rise in pre-opening trading. The future on the Dax in Frankfurt marks an increase of 0.12%, that on the Cac 40 in Paris rises by 0.11%, while the London Ftse 100 marks +0.15%. The Euro Stoxx 50 gains 0.10%. Euro slightly down against the dollar at the start of the day. The common currency is trading at 1.0559 dollars with a -0.08%. Quotation almost unchanged on the yen at 158.08, while the dollar/yen sees an advantage of the greenback at 149.63, with a +0.19%.
08:14
Tokyo closes slightly lower
The Tokyo Stock Exchange concludes the first session of the week with a decline, despite the encouraging signals coming from the Bank of Japan’s quarterly Tankan report on the confidence of large businesses, with investors’ attention focused on the next signals from the American Fed, despite the agreement reached at the last minute in Washington to avoid the shutdown. The Nikkei reference list recorded a decline of 0.31% to 31,759.88, and a loss of 97 points. On the exchange rate front, the yen is stable against the dollar at a level of 149.60, and is trading just above 158 against the euro.
2023-10-02 20:12:42
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