Europe sluggish without the Wall Street lighthouse. Milan closes even, Tim on a roller coaster

(Il Sole 24 Ore Radiocor) – A weak session for the European stock exchanges which, with the exception of Milan (-0.2%), all closed just above par without the Wall Street beacon due to Thanksgiving Day. Europe, although the prospects for an economic recovery do not seem at the moment at risk. In the background are always fears of a faster-than-expected US rate hike.

Today was thus a good opportunity, after the 2021 rally, to rotate portfolios in light of the uncertainties that will likely remain on the economic-financial scenario from now to the end of the year. Hence, sales of auto securities, travel and commodities and significant purchase flows on utilities with His strong rise in Frankfurt ed Enel which still runs downstream in the wake of the presentation of the industrial plan. The best is Campari in the wake of the record six months of the French Remy Cointreau while, waiting for the key board of tomorrow, Telecom Italia he experienced a swing session and then closed down by 2.4% to 0.48 euros, below the level of the potential takeover bid for Kkr.

On the foreign exchange market, the single currency, which yesterday fell below 1.12 dollars, the lowest since early June 2020, changes hands at 1.121 dollars (yesterday at 1.1196 dollars). It is also worth 129.3 yen (129.184 yen), while the dollar-yen is equal to 115.35 yen (115.382 yen). Slight decline for crude oil with WTI down 0.3% to $ 78.1.

Rate hike increasingly discounted in the first half of 2022

The Fed’s monetary policy remains at the center of the markets’ attention, also given the change of tone. “There Fed narrative on inflation it has changed – says Luigi Nardella of Ceresio Investors – from a temporary phenomenon linked to the reopening to the risk that high inflation expectations become entrenched ». In this picture, the acceleration of the reduction of the purchasing plan of debt securities “would leave more flexibility for faster rate hikes.” Interest rate futures are now discounting at least one rise in the first half of 2022: “so far the markets have remained relatively calm – he adds – but the path that central banks must take to normalize monetary policies is narrow”.

Telecom always under the lens, Enel runs

Piazza Affari on the swing Telecom Italia, after the 15% jump on the eve, triggered by the hypothesis that the Kkr fund could put on the plate a much higher price than the one initially indicated at € 0.505 per share. The situation, however, is fluid with the Government that could exercise the golden power and with Kkr that could back down since the announced offer is not binding. In addition, a board of directors requested by 11 directors of the company is scheduled for tomorrow, which could corner the CEO, Luigi Gubitosi.

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