(Il Sole 24 Ore Radiocor) – European stock exchanges all up, driven by purchases on technology and commodity stocks. The focus of the markets however remains on inflation, with oil and gas prices still rising while the dollar falls and the euro recovers the threshold of 1.16. Meanwhile, the minutes of the last meeting of the Fed confirmed that the tapering it could start between mid-November and mid-December, showing itself ready to handle the price increase. “The focus – say the analysts of Activ Trades – remains on macro data, because the stock trend in this phase depends on the economic recovery“. Still attention to the quarterly reports coming from the US, with the big banks in the foreground from Bank of America to Citigoup and Morgan Stanley, while on the macro front the unemployment benefits will arrive.
The markets are also looking at the news on the shortage of components and the effects on production and therefore on the accounts. “There shortage of raw materials, semi-finished products and the various problems in supply chains will certainly have a negative impact on the short-term results of numerous companies and sectors – comments Luigi Nardella of Ceresio Investors – but these are problems related to abrupt stop-and-go suffered by the global economy and the very strong recovery in consumption ». For Nardella, “a significant correction in stock prices on these fears could be a good buying opportunity.”
Banco Bpm and Bper Banca run to Piazza Affari, Cnh weak
Milan is the best square in Europe with the FTSE MIB which also reached an increase of 1%, mainly driven by purchases on Banco Bpm e B for Bank: for both Jefferies analysts they started hedging, for Banco Bpm with a buy judgment and a target price of 3.50 euros, with a potential upside of 30% compared to the consensus. For Bper the rating is hold and the targe price is at € 2.30, however below the 2023 consensus of 2%. Industrial Cnh it moves against the market trend and is among the worst stocks in the FTSE MIB. The group announced that will close temporarily several of its production sites for agricultural machinery, commercial vehicles and propulsion systems in Europe, due to supply chain disruptions and a shortage of key components, especially semiconductors. .
Oil rises, dollar falls to 10-day lows
The dollar’s rally stops, losing ground against the main currencies and falling to the 10-day lows. The euro takes advantage of this and thus recovers the threshold of 1.16 on the greenback, after the Fed confirmed the timing of the tapering, calming speculation on the US currency a bit. Meanwhile, commodity prices start to rise again, starting with oil with the Brent firmly above $ 84 a barrel and the WTI above 80 dollars a barrel. The price of gas is also rising again, despite Putin having declared that Russia is ready to supply Europe with all the necessary quantity of gas. Russian availability
it would seem to be facilitated by the fact that local stocks have reached a level sufficient to face the winter.