Europe Strengthening Recovery with Stock Exchanges and Monitoring Fed as Banks Lead Piazza Affari

3′ of reading

(Il Sole 24 Ore Radiocor) – The European stock exchanges they are trying to consolidate the increases obtained in the last part of the session on the eve, while investors’ attention turns to the start of the two-day Fed meeting, which tomorrow will lead to the announcement of the decision on interest rates. Fed Fund futures currently view a 25bp upside as likely at 76.8%, while maintaining the status quo is quoted at 23.2%. In any case, uncertainty remains high after the rescue plan of Credit Suisse, which will be bought by UBS for 3 billion francs, seems to have contained fears of contagion, even if the zeroing of AT1 bonds helps fuel nervousness of the financial sector.

Asian price lists are positive, Tokyo closed for holidays. The prospect of a slowdown in the Fed’s monetary policy tightening penalizes the dollar and pushes gold up, which yesterday even exceeded 2,000 dollars an ounce, taking advantage of the fly-to-quality that prompted investors to look for safe assets. Spot delivery rose 0.2% to 1,982.29 dollars an ounce, while futures increased 0.1% to 1,984.30 dollars. On the currency market, the euro rises, remains above 1.07 dollars and is indicated at 1.0712 from 1.0720 at yesterday’s close. The single currency is also worth 141.10 yen (from 141.06), while the dollar/yen ratio is 131.70 (from 131.58). Oil prices are still declining: the May future on WTI drops 0.5% to 67.48 dollars a barrel, while the same delivery for Brent drops by 0.58% to 73.36 dollars. The price of natural gas in Amsterdam rose by 1% to 39.7 euros per megawatt hour.

positive asian

Asia closes the second weekly session with a plus sign. Chinese stock markets positive, around the intraday highs, on the reassurances of the Central Banks to protect the stability of the global markets: the Shanghai Composite index rises by 0.64%, to 3,255.65 points, while that of Shenzhen marks an increase of 1.57%, at 2,085.98. In Hong Kong, the Hang Seng index gains 0.62% to 19,118.87 points. Close the session in positive territory Seoul (+0.4%). With negotiations still in progress, Mumbai is up (+0.3%).

The appointments

Today’s macroeconomic agenda foresees the diffusion of theGerman Zew index for Marchestimated to worsen sharply both for the part relating to the current conditions of the economic system and for that on future prospects.

However, investors are looking above all at the meeting of the Federal Reserve, which will communicate the monetary policy decisions tomorrow. Economists expect a 25 basis point rate hike, but a more accommodative stance on financial conditions.

Already in recent days the Fed and the other central banks have supported the operators of the banking system with liquidity injectionsalso through daily operations, in order to stem the fallout from the bankruptcy of the Svb Use and difficulties of Swiss credit .

Stock exchanges on Monday 20 March

Yesterday investors took refuge again in government bonds, which recorded an increase in quotations and a decisive decline in yields. In recent days, the maturity rate of the ten-year BTP has fallen from over 4.% to below 4%, while that of the Bund has once again reached the 2% threshold, from 2.5%.

Me too’oro it has functioned as a safe haven and remains on the fences, even if it has retreated from the peak of 2,000 dollars an ounce.

Conversely, it has weakened the dollarsapped by a softer-than-planned Fed.

To view this contentopen the page on ilsole24ore.com

View on ilsole24ore.com