(Il Sole 24 Ore Radiocor) – The European stock exchanges have recorded a solid rise, after closing the month of November with an overall balance of -2.6% according to the Stoxx600 under the pressure of the spread of the Omicron variant of Covid-19 and the statements of the Fed president who is moving towards a monetary tightening in 2022. With purchases in the car, travel sector, energy and mining driving the indices, the lists are all in a lively rise and Piazza Affari is the most convincing in the rebound. Also runs with Wall Street with major indices up more than 1%
“In the short term, uncertainty remains high – comments Luigi Nardella of Ceresio Investors – we still know very little about the Omicron variant and the markets will have to get used to an increasingly less accommodative attitude of central banks, now more worried by theinflation than from the economic recovery “. December started with a strong rise, after the minus sign of November but – he warns – «profit taking at the end of the year after strong rises could amplify the downward movements. In the medium term, however, we remain positive on equity markets: good growth prospects for economies and corporate profits, albeit in a context of gradual normalization of rates “.
Wall Street is running but volatility remains for Omicron
Session in strong rise on Wall Street, for the first session of the last month of the year, with the main indices gaining over 1%. Investors are analyzing the risks posed by the new variant of the coronavirus, but the limited data available fuel uncertainty and, consequently, volatility in the markets. Yesterday, the session ended in sharp decline, with investors worried about the doubts of pharmaceutical companies about the efficacy of vaccines against the Omicron variant and the words of Jerome Powell. The chairman of the Federal Reserve hypothesized an acceleration of tapering, despite the risks now brought by the new variant, due to fears about inflation. With the crisis triggered by the pandemic, the Fed began buying $ 120 billion in bonds to support the economy, but at the latest meeting it decided to cut purchases by $ 15 billion a month, with the aim of putting an end to it. to the aid program in June. Now, there are analysts who predict that a first rate hike will take place as early as May.
Meanwhile, in November, the manufacturing ISM – the index that measures the performance of the manufacturing sector in the United States – rose compared to the previous month, recording the eighteenth consecutive month of expansion (above 50 points). Last month, it recorded 61.1 points, after 60.8 in October. The employment index rose to 53.3 points from 52 the previous month and above the expected 51 points. The data on new orders rose from 59.8 to 61.5, while that on production increased from 59.3 to 61.5 points. The price index fell 3.3 points to 82.4 points.
