There was great anticipation for the words of Christine Lagarde, especially after the Fed turning point, which disconnected its action from the mechanical inflation target of 2% and focused rather on achieving flexible full employment: the strengthening of the euro is worrying. The French president said the issue has been discussed and will be monitored for effects on inflation. “Lagarde has repeatedly tried to recall the words inherent in the fact that the ECB will carefully monitor the exchange rate, emphasizing how the reference to the forex theme in the press release is rather unusual and therefore relevant. However, in the absence of a solid basis represented by a possible revision on the downside of the inflationary scenario, his words today sounded like a “I would like to but I can’t … yet” “, the comment of Antonio Cesarano of Intermonte. Marco Valli of Unicredit remarked how the Eurotower message was aimed at pointing out that it is not the time to leave room for panic, from Abn Amro they trace a balance between “dove” messages (the references to the change, the fact that the Council remains ready to change instruments if necessary, an indication that Pepp will likely be used for the full $ 1.35 trillion) and a slight increase in the inflation outlook that analysts have deemed “optimistic”.
Rep
Lagarde: “The eurozone resumes”. And the ECB does not follow the Fed
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L’euro it closes steadily on these considerations at $ 1.1834, after having jumped yesterday to a high of $ 1.1917.
The European stock exchanges closed weak and on a swing a last session of a nervous week, with Wall Street which, although rising, was unable to take off the markets of the Old Continent. In London the Ftse 100 index rose by 0.44% to 6,029.70 points, in Paris the Cac 40 gained 0.20% to 5,034.14 points and in Frankfurt the Dax file a 0.01% to 13,201.60 points . Piazza Affari closed unchanged with the Ftse Mib index at 19,820 points.
Wall Street on the other hand, it is moving up, after yesterday’s new decline. The Dow Jones rose 0.29% to 27,613 points, the S&P by 0.7% to 3,362 points and the Nasdaq by 8% to 11,003 points. In New York yesterday the Nasdaq suffered in particular (-1.99%), the Dow Jones (-1.45%) and the S&P 500 (-1.83%) also suffered badly. After a good start, fears about the speed of the recovery and those about a bubble in the tech sector prevailed, with Apple losing more than 3% and Amazon falling by 2.86%. Doubts about the US stimulus plan also weigh heavily, after the dems in the Senate judged the 300 billion dollar Republican aid plan “insufficient”.
Asian stocks traded in recovery after the Wall Street slide. As he notes Bloomberg, global equities are still headed for a negative second week – the first time since March – after the rally that pulled them out of the pandemic lows by adding $ 7 trillion to US stock valuations alone. This morning, therefore, the Tokyo Stock Exchange it was driven higher by the stocks of export-oriented companies, whose prices were supported by the weakening of the yen on the currency markets: the Nikkei finished with a gain of 0.74% at 23,406.49 points. The broader Topix index was also positive, ending the session with an increase of 0.72%, to 1,636.64 points. Last night, as mentioned, the Nasdaq lost ground especially in the final session, scoring -1.99% at the end, the Dow Jones lost 1.45%.
The uncertainty about the strength of the recovery, undermined by the growth of new cases of Covid in Europe, is felt on the price of Petroleum which opens down. On the Asian markets, futures on Light crude Wti are down 9 cents at 37.31 dollars and those on Brent by 15 cents at 39.91 dollars. Yesterday US weekly inventories unexpectedly rose by about 2 million barrels, refuting analysts’ forecasts that they saw them in decline, fueled doubts about the speed of recovery after the crisis linked to the Coronavirus pandemic.
Rich daily macro agenda. L’inflation of Germany in August it rose to zero on an annual basis, in line with expectations and from -0.1% in July. On a monthly basis, inflation falls by 0.1% from -0.5% in July. In Italy, State traces the loss of half a million employees in the second quarter cut off by Covid. From Berlin, where a Eurogroup informal, Commissioner Gentiloni speaks of a “recovery in progress” but with an “uncertain” pace.
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