Home » Business » Stock exchanges, Europe cautious between quarterly and waiting for the ECB

Stock exchanges, Europe cautious between quarterly and waiting for the ECB

(Il Sole 24 Ore Radiocor) – They accelerate to the upside European stock exchanges together with positive US futures: thequarterly effect continues to support investor sentiment on the equity markets, balancing fears related to the spread of Covid and the problems of Chinese real estate sector after another builder, Modern Land, did not respect the payment of a dollar bond, returning to voice the risks of the domino effect after the crisis of the colossus Evergrande. In the United States, where Dow Jones and S & P500 have updated records, Facebook opened the round of Big Tech budgets announcing earnings higher than analysts’ forecasts, for more than $ 9 billion, even though revenues were lower than expected.

Waiting for the ECB, the focus is on inflation

The highlight of the week will be Thursday, with the ECB meeting scheduled and the focus on inflation. “The focus will be on how Lagarde will comment on the evolution of inflation data and expectations – says Luigi Nardella of Ceresio Investors – since the last meeting in September there has been an increase in timely data and a significant increase in expectations. market: at the highs of the last five and ten years respectively, the five-year inflation swap – 2.0% – and the 10-year “break-even” (difference between nominal yields and real yields on government bonds) 1 , 9%. We are now close to the ECB target ». The most important decision, namely how to continue the bond purchase plan after the Pepp expiry (the purchase program for the pandemic emergency) at the end of March, “is postponed to December,” adds Nardella.

Tim runs to Piazza Affari. Unicredit and Mps in focus again

On the FTSE MIB of Piazza Affari stands out Telecom Italia which benefits from the confirmation of the targets by Tim Brasil. The potential repercussions of the halt to negotiations between Unicredit and Ministry of Economy on Bank Mps. Thus it highlights in particular Banco Bpm which, once the Siena option is archived, could end up in the crosshairs of the institute led by the CEO. Andrea Orcel. Also good Ferrari e Stmicroelectronics, while losing ground Amplifon.

The euro / dollar has little movement, the pound is in the spotlight

On the currency, the euro / dollar did not move, while the pound hit a new high for the year in the euro. “With rising risk appetite in global financial markets driven by positive earnings, the UK currency is in high demand as the prospect increases that it is only a matter of time before the Bank of England starts raising interest rates. ActivTrades analysts say. On the other hand, «the euro is under pressure in view of the ECB meeting – they add – the general perception is that the ECB will maintain its current accommodative position and reject any request for a rate hike towards next year. In this scenario, there could be a further decline for the single currency against the pound ”.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.