European Stock Markets Rise After ECB’s Decision on Rates; Euro at 1.1 Dollars, China Industrial Production Up 6.6% – Finance News by Stefania Arcudi and Chiara Di Michele

Finance

Of Stefania Arcudi e Chiara Di Michele

In China industrial production +6.6% in November. Real estate companies are toasting the news that Beijing and Shanghai have eased restrictions on home purchases. Europe is rising after the ECB’s decision on rates. Euro touches 1.1 dollars, spread stable

3′ reading

(Il Sole 24 Ore Radiocor) – In the last session of the week, the European stock exchanges, who had appreciated the prospect of Fed rate cuts in 2024, are trying to shake off the disappointment with the choices of the ECB, which has for now postponed a lowering of the cost of money until a later date. The stock markets of the Old Continent are thus attempting to close on a positive note a week oriented by the choices of the central banks: the FTSE MIB travels in positive territory, like the CAC 40of Paris and the DAX 30 of Frankfurt.
The focus is on macroeconomic data, which continues to guide central banks in their decisions. In particular, today the focus is on inflation, with data from France (-0.2% monthly in November and +3.5% annually) and Italy, but also on the PMI services and manufacturing indices in the Eurozone, in Germany and France. Meanwhile, in China the Central Bank kept the reference rates unchanged and injected liquidity into the market for around 204 billion dollars, a move appreciated by the market, which was instead disappointed by the data on retail sales (+10.1% but below the estimates for +12.5%).

Stellantis in the spotlight at Piazza Affari, Campari down

It stands out on the Milanese price list Stmicroelectronicspromoted by Ubs which raised its rating from neutral to buy and revised the price target from 52 to 54 euros per share, while it slips to the rear Davide Campari, following the start of exclusive negotiations to acquire Courvoisier, the historic premium cognac. In positive territory too Stellar, Iveco Group e Cnh Industrialwhich will leave the Ftse Mib on Monday and will be replaced by Brunello Cucinelli. In general, banks are down, with Unicredit, Banca Pop Er e Bpm Bank. Bpm, among other things, announced that it has completed the acquisition of the entire share capital of Vera Vita and Vera Financial from Generali Italia.

The dollar remains weak, oil rises

Oil is on the rise: January WTI contracts rise by 0.38% to 71.85 dollars a barrel, those of the Brent February by 0.37% to $76.89. The January gas contracts traded in Amsterdam, after having achieved a first position at 34.03 euros per megawatt hour, fell by 1.8% to 34.22 euros. On the currency market, the greenback remains weak, with the single currency touching the 1.1 dollar threshold, while investors continue to evaluate the Fed’s moves: the euro it is worth 1.099 dollars (1.098 at the start, 1.09 at the close yesterday), while the exchange rate with the yen is at 156.057 (156.043 at the open, from 154.8). The dollar/yen cross is at 141.906 (from 142.012). Finally, the spread fell slightly to 167 points, from 168 the day before, with the ten-year benchmark yield falling slightly to 3.79%.

Little moving opening for him spread between BTp and Bund in the aftermath of a session of sharp contraction in yields in the Eurozone despite an ECB that was less dovish than expected on the prospects of interest rates. The yield differential between the benchmark 10-year BTp and the German equivalent maturity stood at 167 basis points from 168 the day before. The yield of the benchmark ten-year BTp falls slightly below the 3.80% with which it closed the previous session and stands at 3.79%.

Asia, stock markets hit four-month highs

Asian stock markets hit four-month highs. Sharp declines in the dollar and US yields have prolonged the powered rally by the Federal Reserve’s decision on monetary policy. In Asia, the MSCI index, the broadest in the Asia-Pacific region outside Japan, rose 0.9% after an earlier rally to its highest since early August met some resistance due to a Chinese stocks turnaround. Overall, the index rose 2.8% this week. The Tokyo Stock Exchange (+0.87%) concludes the last session of the week on the rise following the update of the record on Wall Street and the stop to the appreciation phase of the yen against the main currencies.

Real estate drives China, accelerates industrial production

Chinese bluechips gave up earlier gains to fall 0.3% to hit a new five-year low. Hong Kong’s Hang Seng Index, however, rebounded 2.2%, led by a more than 3% jump in Chinese real estate companies on news that Beijing and Shanghai eased restrictions on home purchases. Retail sales, however, increased by 10.1% in November compared to the +12.5% ​​indicated by analysts. Industrial production accelerates, rising by 6.6% annually and 0.87% monthly in November.

• Stefania Arcudi

  Radiocor editor

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2023-12-15 08:20:11
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