MILANO – The rise in bond yields continues to keep global markets on edge. In the US, Treasuries and the dollar rise on expectations that the rise in interest rates is not over yet. European government bonds are also in the same direction. After yesterday the bund reached an 11-year high, today all the yields on European securities continue to grow, with the BTP at the start of the morning at 4.7%, a record since October 2022 and close to a ten-year high years. All indications that weaken the price lists throughout the session, with the indices all ending in decline. Weak session also in Asia, with Tokyo closing at -1.11%.
17:00
Wall Street amplia i cali
Wall Street widens losses as concerns over prolonged Fed rate hikes and renewed inflationary pressures from rising oil prices persist. Also weighing on sentiment is the return of the nightmare shutdown, with the alert from Moody’s Investors Service according to which a shutdown in Washington would represent a “credit negative” event for the country.
The Dow Jones lost 0.88%, the S&P 500 lost 1.08% and the Nasdaq lost 1.31%.
13:59
Effect of rates on the dollar, at ten-month highs
The dollar is rising and reaching its highest levels in the last ten months, in the wake of the Fed’s ‘hawkish’ approach which has increased US Treasury yields and stimulated demand for the greenback. The dollar index remains around 106. At its September meeting, the US central bank kept interest rates unchanged but signaled another rate increase before the end of the year and announced fewer rate cuts for next year. rates than those previously indicated. Meanwhile, Chicago Fed President Austan Goolsbee noted that the central bank is likely approaching the point where it can keep rates stable, albeit at a higher level than the market is accustomed to. Investors now await today’s data on US consumer confidence and home sales for further clues on the state of the economy. The dollar reached multi-year highs against the euro (exchange rate at 1.0599), the pound (1.2187) and the yen (148.85).
13:14
Government bonds, 2-year BTPs placed: yields soar
The yield soars (+34 points in a month) in the auction with which today the Treasury placed 2-year BTPs for 3 billion euros: against a demand for 4.87 billion (coverage ratio 1.62) securities were assigned with an average rate of 3.97%. In two other auctions, 767.5 million in industrial BTPs were placed. 5-year term (maturity May 2029) with a gross yield of 2.05% and 982.4 million in industrial BTPs. at 30 years at a rate of 2.59%.
13:13
Unicredit working on the board of directors list: headhunters appointed
Unicredit has appointed the head hunters who will support the Corporate Governance & Nomination Committee and the board of directors in defining the list of the board of directors to be presented at the 2024 assembly. The bank confirms this following press rumours. They are Egon Zehnder and Spencer Stuart, the institute explains in a note.
13:13
The spread fluctuates around 190 points
The rise in the spread continues, reaching 192 points today with a rate of 4.7%, the highest since October 2022. At the moment the spread between BTPs and Bunds stands at 189 basis points with a rate of 4.674%.
13:12
European stock markets continue slowly
The European stock markets are trending downwards with the exception of London and Madrid which are around parity, at +0.06% and -0.05% respectively.
Frankfurt lost 0.69%, Paris 0.74%, Milan 0.77%.
12:08
The BTP is flying, at the highest since October 2022
The spread between BTPs and German Bunds widens further, with the yield differential between the two 10-year bonds rising by 3.6 basis points, to 190 points, on levels last reached in mid-May this year.
Yields also rise, updating their highs since October 2022: that of the Italian 10-year bond increases by 3.5 basis points, to 4.69%.
09:03
European stock markets open lower
Negative start for the main European stock exchanges. In Paris the Cac 40 index began trading with a decline of 0.56%, in Frankfurt the Dax lost 0.48% and in London the Ftse 100 lost 0.29%
08:37
The ten-year BTP at 4.66%
Spread between BTP and Bund showed little change at the opening of the bond markets. The yield differential between the two 10-year bonds remains at 186 basis points, with the yield on the Italian 10-year bond stuck at 4.66% and the German one just a step away from 2.8%.
08:34
Still Evergrande effect in Asia, Tokyo down
Asian stock markets in the red with investors worried about the crisis of the real estate giant Evergrande and its impacts on the already limping Chinese economy, while signals continue to arrive from members of the Fed that the monetary tightening is not over yet and a new rate hike could arrive by the end of the year. Tokyo lost 1%, Hong Kong 0.9%, Seoul 1.2% and Sydney 0.5% while the Shanghai and Shenzhen stock markets fell by 0.3%, with the real estate sector still suffering. Futures on Europe and Wall Street also fell. The price lists must digest the new 16-year highs marked by Treasuries: the yield on the American ten-year bond rose by 11 basis points, up to the maximum of 4.548%, with the market still taking measures to respond to the new indications from the Fed and ECB on taxi.
Oil is falling for the second consecutive session (-0.5%), with the WTI at 89.22 dollars a barrel and Brent at 92.77 dollars, while the monetary tightening risks slowing down the economy. the president of the Minneapolis Fed, Neel Kashkari, said he expected a rate increase this year in light of the robustness of the American economy, contributing to the strength of the dollar (+0.1% to 1.058 against the euro), while Christine Lagarde reiterated that the cost of money in Europe will remain high for a long time.
2023-09-26 16:06:36
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