MILANO – Confidence among European stock exchanges waned in the aftermath of a session experienced with concern over the acceleration in December by the Fed on the roadmap for rate hikes. The employment figures, much awaited by the markets, are disappointing from the USA. The US economy created 199,000 jobs in December, below the expectations of analysts betting on 450,000. The unemployment rate dropped to 3.9% from 4.2% the previous month
European indices are down: Milano the 0.45% yields, Frankfurt yields 0.95%, Paris 0.76%. It goes against the grain London, which advanced 0.29% towards the close. In Asia it is not very moving Tokyo, with the Nikkei closing at -0.03% while the government approved new restrictions in the country to contain the Covid emergency.
The Fed dresses up as a hawk and scares the world stock exchanges
by Vittoria Puledda
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Among the macroeconomic data, according to Eurostat figures, annual inflation in the eurozone will reach 5% in December 2021, up from 4.9% in November. Looking at the main components of inflation in the euro area, according to the EU statistical office, energy should record an annual inflation rate of 26% (in November it was 27.5%), followed by food, alcohol and tobacco (3.2%, compared to 2.2% in November), non-energy industrial goods (2.9%, compared to 2.4%) and services (2.4%, compared to 2.7% the previous month ).
The production of the German industry in November recorded a decline of 0.2% monthly. The Federal Statistical Office adds that on an annual basis the decline was 2.4% while compared to February 2020, the month before the first restrictions taken in Germany due to the pandemic, the decline is 7 percent.
From the US, investors are watching with attention to the rise in mortgage rates, which are also rising in anticipation of the general rise in rates. This week, the levels hit a high since May 2020, with the fixed rate of a 30-year loan hitting 3.22% from 3.11% last week. An increase that could put the brakes on the dynamism of the American real estate market, which has experienced a strong acceleration especially in the last two years.
There is also a respite due to the rise in yields triggered by the possible moves by the Fed. The Italian ten-year falls to 1.26% and the spread it drops to 132 points after hitting 139 yesterday. Among the currencies, the euro is on the verge of 1.13 dollars, the euro / yen exchange rate is at 130.99 and the dollar / yen at 115.91.
Tensions and riots in Kazakhstan and production problems in Libya due to conflicts between militias push the price of Petroleum at 80 dollars a barrel. The Texas WTI changes hands at $ 80.09 (+ 0.79%) after gaining more than 6% in the last four sessions while Brent is trading at 82.6 (+ 0.8%). The increase in production decided by OPEC + is not enough to cool the market, which, according to experts, will be unlikely to be achieved in the short term.
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