The stock exchanges today, 7 October. Cleared by the White House on the aid plan: good Wall Street, uncertain Europe

MILANO – Donald Trump’s decision to freeze discussions with Democrats on the new US economic stimulus plan, at least until next month’s elections, initially leaves markets in suspense. Appeals by Fed Governor Jerome Powell to avoid “unnecessary inconvenience” to Americans in the absence of new federal aid are for now unheard: the synthesis between the $ 2.2 billion dem proposal and the 1.6 plan is missing. billions that the White House is able to offer.

In the afternoon, however, a partial correction arrives from the White House, with the White House economic adviser, Larry Kudlow who explained that the US president is willing to negotiate with the Democrats on some specific measures: “I don’t think the recovery depends on a big aid package,” Kudlow said, but “there are a number of measures that we think could be of great help to specific sectors of the economy, “such as, he cited, extending the small business loan program or grants to help airlines pay their employees.

Europe closes uncertainly in line with trading trends throughout the day: Milano it stops at + 0.03% with Nexi falling towards the sale price of the 13.4% package by the Mercury funds (15.5 euros). Banco Bpm shines in Piazza Affari after the announcement of the CEO Giuseppe Castagna on the possible sale of 1 billion of substandard loans: the transaction could be communicated “with the next quarterly”. The others are uncertain: Paris slips by 0.12%, Frankfurt advances by 0.12% e London drops by 0.04%. It does better Wall Street: towards the close of the European stock exchanges, the Dow Jones rose by 1.28% and the Nasdaq by 1.31%.

Asian equities moved in no particular order following the negative close on Wall Street. Tokyo at the end of the day it was practically unchanged (-0.05%), while Hong Kong advances by 0.75% e Only 0.89%. Closed for Shanghai holidays. Last night, Trump’s decision weighed on the lists: the Dow Jones lost 1.3%, the S & P500 1.4% and the Nasdaq 1.75%. Futures today indicate a timid rebound.

Massimiliano Cagliero, founder and CEO of Banor Sim, notes how American markets are all in all going their own way, despite the fact that there have been two potentially ‘shocking’ events in recent times. The reference is first of all to the presidential debate, on which the judgment is clear: “The fact that the United States of America, a still young superpower, however meritocratic, full of excellence in many fields, can present two candidates in the next elections âgée people, of the caliber of the two gentlemen we saw appear in the electoral debate last Tuesday, leaves you speechless “. Following, there was Trump’s Covid contagion which brought some volatility and an initial negative reaction on the markets, but Wall Street’s weekly balance was still positive in the last eighth. Have actions and politics gone their separate ways? It may be that we are facing a defining event, tonight’s ‘Vice President’ debate in Salt Lake City. “For the past few weeks, Democratic voters have been convinced that voting Biden means in practice voting for his Vice President, Kamala Harris. It may be that the same belief will also begin to spread among Republican voters, in the event of Trump turns out to be more serious, and long-lasting, than can be expected today. And probably, Pence, the current Vice President, could do the interests of the United States of America better than one might think. “

Today’s macro agenda opens with the update on industrial production in Germany: weak data in August, with an unexpected drop in production of 0.2% monthly and 9.6% annually. Istat instead reports a rebound in retail sales in August and will also publish the monthly note on the trend of the Italian economy in September. In the afternoon, data on stocks and production of crude oil will arrive from the United States, while in the evening the Federal Reserve will publish the minutes of the last meeting.

On the European front there is the new intervention of the ECB president Christine Lagarde “We must guard against prematurely withdrawing these support measures,” he warned in an interview with Harvard International Review referring to monetary and fiscal policies in response to the pandemic that “have acted in a decisive way, to protect production capacity and jobs. of work”.

The spread between German BTPs and Bunds has closed on minis since February in the area of ​​127 basis points, with the Italian 10-year rate updating its all-time low to 0.77%.As the Unicredit economists noted in the morning note, yesterday the chief economist of the ECB, Philip Lane, gave strong indications on the addition of monetary stimuli in preparation for the European Central Bank to bring inflation back to the desired levels. President Lagarde also stressed the concern that the new containment restrictions for the virus could slow the recovery.

L’euro closes higher above 1.17 dollars: The European currency changes hands at 1.1749 dollars. Finally, among the raw materials, the prices of Petroleum the increase beyond expectations of US stocks. In New York, WTI futures are trading at $ 39.5 a barrel, down 2.83%.

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