Contrasted Europe, Milan +0.2%. Powell freezes on rates
The main European stock markets move in no particular order after the words of Fed President Jerome Powell, who sees a “strong” economy and is in no hurry to lower rates. Milano earns 0.2% e Madrid 0.55%, while they give way Paris (-0,2%), Frankfurt (-0,1%) e London (-0.07%), US futures negative. It remains below 121 points spread between German 10-year BTPs and Bunds, which drops to 120.8 points, with the Italian annual yield rising by 1.8 points to 3.56% and the German one by 1.4 points to 2.35%. Inflation in France at 1.2% and in Italy at 1% confirmed at second reading, awaiting the EU’s economic estimates. Various data are expected from the USA, including October retail sales, the New York State manufacturing index and industrial and manufacturing production also in October. The decline in crude oil continues (Wti -1.03% to 67.99 dollars per barrel) and gas (-1.13% to 45.7 dollars per MWh), while accelerating They (+0.8% to 2,567.44 dollars per ounce). Weak the dollar at 0.04 euros, 155.28 yen and 0.78 pounds. In no particular order the banks, with increases for Santander (+1,42%), Bbva (+1,41%) e Bnp (+0.98%), while profit-taking continues up Mps (-0.42%) after the rally on the day before following the sale of 15% by the Treasury. On the rise instead Bpm Bank (+1.06%), which purchased 1/3 of that share. Good too Popular Sondrio (+0.87%), little movement however Understanding (+0.05%), while it stands out General (+4.46%), after better-than-estimated results. Speed up Saipem (+1.94%), more cautious Eni (+0.54%), with its rivals Total Energies (+0,45%), Shell (+0,55%) e Bp (+0.8%). Semiconductor manufacturers are selling Asml (-3,14%), Be (-2,35%) e Stm (-1.97%) and pharmaceuticals Lonza (-3,33%) a Sanofi (-2,81%), AstraZeneca (-2,64%) e remember (-0,86%).
Market Madness: Powell Locks Rates, Fiddling in Europe
Well, it seems we’re never short of drama in the financial markets – and talk about some fantastically unpredictable behavior! Our good friend, Fed President Jerome Powell, has decided to put the rates in a chokehold and freeze them for a bit. I mean, it must be nice to have the job security of a weatherman: sunny with a chance of economic stability, everyone is grateful just to see the clouds part a little!
In Europe, it’s mixed signals galore, folks. Milan is strutting around with a modest gain of 0.2%, while Madrid is practically throwing a fiesta at +0.55%. Meanwhile, Paris and Frankfurt are looking as cheerful as a cat in a bathtub, down 0.2% and 0.1% respectively. And London? Well, it’s like that uninvited guest at a party who’s just lurking around: down by 0.07%, just taking up space and not contributing anything to the conversation!
Now, let’s break it down like a bad dance move: the spread between those German 10-year BTPs and Bunds is at 121 points. That’s about as welcome as a mosquito at a barbecue, but hey, they managed to drop to 120.8 points. Oh boy, somebody get them a trophy for that monumental win! Meanwhile, Italian yields are rising faster than my blood pressure when I look at my electric bill: up 1.8 points to 3.56%. God help us!
Inflation in France is at 1.2%, and in Italy, it’s a slightly more modest 1%. Quite frankly, that’s like trying to decide if you want your morning coffee brewed lightly or brewed with a tiny hint of distress. And don’t forget: we’re anxiously awaiting those all-important EU economic estimates, as if they’re the result of a particularly tense reality TV show.
Now, over across the pond, we’ve got plenty of data coming up from the US, including October retail sales and New York’s manufacturing index. Meanwhile, the world of crude oil is feeling shy, dropping by a smidgen of 1.03% to about $67.99 per barrel. Wti’s like that kid in class who can’t sit still – and now gas prices are also down a tad to $45.7 per MWh. What’s next? Oil hitting the gym and getting fit? Someone call the personal trainer!
Switching gears, let’s check in on the banks. We’ve got Santander on the rise(+1.42%), while Mps seems to be feeling the weight of expectation and is down (-0.42%) – must have traded its stock for a last-minute holiday trip or something. And there’s Bpm Bank, bouncing back up (+1.06%)! It’s like watching a game of financial whack-a-mole around here!
As for the oil giants Eni and its competition, it’s a game of careful toe-tapping rather than a full-blown cha-cha. But wait, don’t forget the semiconductor manufacturers, like Asml, who are selling off more than a clearance sale at a thrift store – down by a whopping -3.14%! I guess they thought they’d take a leisurely swim, but oops… that turned into a deep dive instead!
So there you have it, folks. A financial roller coaster where the highs and lows are pretty much on par with my last Tinder date. Buckle up, keep your arms inside the vehicle, and let’s see how this wild ride pans out. Keep an eye on your investments – or just go get a cup of tea. After all, isn’t watching the market just like watching paint dry? Cheers!
Contrasted Europe, Milan +0.2%. Powell freezes on ratesThe main European stock markets exhibited varied performances today, influenced by comments from Federal Reserve President Jerome Powell, who characterized the current economy as “strong” and indicated a reluctance to lower interest rates in the near term. Milano saw a modest gain of 0.2%, while Madrid recorded a more significant increase of 0.55%. In contrast, markets in Paris declined slightly by 0.2%, Frankfurt dropped 0.1%, and London fell by 0.07%. Meanwhile, US futures are trending negative, indicating possible challenges ahead.
The spread between Germany’s 10-year BTPs and Bunds remains below 121 points, currently resting at 120.8 points. The yield on Italian bonds has risen by 1.8 points to 3.56%, while German bonds also experience a rise of 1.4 points to 2.35%. Inflation rates in Europe are stable, with France reporting an inflation rate of 1.2% and Italy confirming its rate at 1%, as these nations await the EU’s economic forecasts.
Market watchers are anticipating various data releases from the United States, including retail sales figures for October, the New York State manufacturing index, and updates on industrial and manufacturing production for the same month, all of which could significantly influence market direction.
The decline in crude oil prices continues, with Wti dropping 1.03% to $67.99 per barrel, alongside a decrease in gas prices by 1.13%, now at $45.7 per MWh. Meanwhile, precious metals see a slight uptick, with they increasing 0.8% to $2,567.44 per ounce. In currency markets, the dollar remains weak against the euro at €0.04, trades at 155.28 yen, and is quoted at £0.78 against the pound.
Among bank stocks, there are positive movements for Santander (+1.42%), Bbva (+1.41%), and Bnp (+0.98%). In contrast, profit-taking pressure weighs down on Mps, which is down 0.42% following a prior rally driven by a sale of 15% of its shares by the Treasury. Meanwhile, Bpm Bank shows resilience with a gain of 1.06% as it purchased a third of that stake, and Popular Sondrio is up 0.87%. Understanding, however, sees minimal movement with just a 0.05% rise, while Generali stands out with a notable increase of 4.46%, following better-than-expected financial results.
In the energy sector, Saipem gains ground with a rise of 1.94%, while Eni treads cautiously, up 0.54%. Its competitors are also performing modestly, with Total Energies up 0.45%, Shell increasing by 0.55%, and Bp up 0.8%. In the semiconductor industry, however, there is a marked decline in stocks such as Asml (-3.14%), Be (-2.35%), and Stm (-1.97%) as market pressures continue. The pharmaceutical sector sees declines also, with Lonza down 3.33%, Sanofi down 2.81%, AstraZeneca down 2.64%, and remember down 0.86%.
How are the fluctuations in currency value affecting the stock performance of banks such as Santander and BBVA?
N natural gas prices, down 1.13% to $45.7 per MWh. Meanwhile, precious metals are seeing a slight rise, with gold increasing by 0.8% to $2,567.44 an ounce.
The dollar is showing weakness, trading at 0.04 euros, 155.28 yen, and 0.78 pounds. In the banking sector, stocks are on the rise for several players: **Santander** (+1.42%), **BBVA** (+1.41%), and **BNP Paribas** (+0.98%) are all performing well. However, **Mps** is experiencing a pullback of 0.42% after a recent rally linked to the Treasury’s sale of a 15% stake.
Notably, **Bpm Bank** is up by 1.06%, having acquired one-third of that stake, while **Popular Sondrio** is gaining traction with an increase of 0.87%. **Intesa Sanpaolo** remains nearly flat with only a slight 0.05% uptick. The standout performer in the insurance sector is **Generali**, surging 4.46% after reporting better-than-expected earnings.
In the energy sector, **Saipem** is showing strong growth at +1.94%, while **Eni** is more subdued at +0.54%. Competitors like **Total Energies**, **Shell**, and **BP** are moving upward in sync with oil prices, showing gains between 0.45% to 0.8%.
Conversely, the semiconductor industry is not faring as well, with companies like **ASML** down 3.14%, **Be Semiconductor** dropping 2.35%, and **STMicroelectronics** off 1.97%. In the pharmaceutical space, **Lonza** is down 3.33%, with **Sanofi** and **AstraZeneca** also experiencing declines of 2.81% and 2.64%, respectively.
In sum, today’s trading is a mixed bag, with notable gains in some sectors contrasted by declines in others, led by prominent figures like Jerome Powell dictating the conversation on economic health and interest rates. Market participants are eagerly awaiting further U.S. economic data that could provide more clarity on the global financial landscape.
