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(Il Sole 24 Ore Radiocor) – The significant increase in risk aversion after the Hamas attack on Israel and the consequent escalation in the area fuels volatility on European stock exchanges. Investors are looking for safe assets and are focusing on government bonds and gold, while on equities there is an ongoing rotation from cyclical stocks to sectors that will benefit from the growing geopolitical tension, starting with defense and energy. After a red start the FTSE MIB of Piazza Affari thus regained parity. As mentioned, oil stocks are in evidence, following the rally in oil and natural gas prices, while banks are weak, starting from Bper e Banca Mps. Among the main Milanese titles they stand out Leonardo – Finmeccanica, Tenaris ed Eni.
On the macroeconomic front, after the better-than-expected data on the American labor market, expectations for indications on inflation are growing: the producer price index is scheduled for Wednesday while consumer prices will be on Thursday. It also remains to be seen whether the new surge in energy prices could influence medium-term inflation expectations, leading central banks to launch new tightening measures.
Returning to Israel, the Central Bank of Israel will sell up to $30 billion in foreign currency to ensure the stability of the shekel after the Hamas attack. This is the first sale of this type ever made by the institute. “The bank will operate on the market in the coming period to limit the volatility of the shekel and to guarantee the liquidity necessary for the correct functioning of the markets,” explained the central bank, which will also provide liquidity of up to 15 billion dollars through swap mechanisms. The institute “will continue to monitor developments, following all markets and acting with available tools if necessary.” The announcement immediately reassured markets, where the shekel is now down 0.6% at 3.86 to the dollar compared with a previous decline of more than 2% to a more than seven-and-a-half-year low in 3, 92 for a dollar.
Weak banks, defense stocks highlighted
Returning to Milanese stocks, the increase in volatility puts banking stocks under pressure, with investors choosing to take profits from the sectors that have performed the most since the beginning of the year. The defense sector, which is progressing throughout Europe, is benefiting from the escalation in the Middle East. Among the most purchased titles, in addition to those of Leonardo, there are those of the French Thales and the British Bae Systems.
Outside the main basket, the company’s stock plummets Juventus Fc after the announcement of the 2022-2023 budget and the new capital increase of 200 million.
2023-10-09 10:44:39
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