Le European stock exchanges they slow down after the expected rate hike by the ECB. Milan e Madrid they bring themselves to parity, Paris (-0,14%) turns negative, while Frankfurt (-0,2%) And London (-0,52%) extends the decline. US futures are mixed ahead of data on the labor market, existing home sales, and gas and crude oil inventories. The spread between 10-year BTPs and German Bunds rises to 85,2 points, with the Italian annual yield rising 2,1 points to 4,31%, the German yield rising 1,8 points to 3,46%, and the French yield rising 2,2 points to 4,36%.
However, it remains unknown whether there will be a another increase within the year and this is why the president's speech is even more anticipated Christine LagardeThe monetary tightening is driven by concerns about rising inflation following the surge in the price of Petroleum due to the worsening of the conflict between the US and Iran, with the opening of a second theatre of war with the clashes between Saudi Arabia and the Houthis in Yemen.
Oil: Saudi Arabian production plunges to its lowest since 1990, Brent nears $105
And speaking of oil, mid-session the news came that Production in Saudi Arabia fell again in August, reaching its lowest level since 1990, due to the conflict between the United States and Iran which has put pressure on the Kingdom's export routes. The communication – transmitted by Saudi Arabia to OPEC – has caused the price of crude oil to further soar: Brent is approaching dollars 105, jumping 3,5% to $104,8 a barrel, while American WTI nearly touched $100 a barrel at $99,65, up 3,75%.
To weigh on inflation it is also the price ofEuropean and British natural gas which remained close to multi-year highs, consolidating the strong gains of the previous session, while fears for the stocks in some countries ahead of winter. The Dutch benchmark contract for the front month rose more than 1%, trading near 81 euros per megawatt-hour (MWh), remaining close to the highest level since 2023 reached yesterday. In Great Britain, the equivalent NBP contract for wholesale gas gained 0,6%, trading at 198,00 pence per therm, holding near the highest level since the end of 2022 and approaching the psychologically significant 200 pence threshold. These levels represent almost double the level assumed by the ECB in the "milder" scenario of June and well above the "adverse" one. This morning the inflation data in Germany accelerated to 2,9% in August, according to the Federal Statistical Office, which confirmed preliminary data. Industrial production in Italy In July, it performed better than expected, rebounding compared to the previous month (+0,7% on a monthly basis after a 1,1% decline the month before).Euro/dollar it is substantially stable and stops at 1,164.
The US is also under scrutiny: PPI and long-term bond purchases on the agenda
In the afternoon, attention will also be on the US market, with the wait for the data on producer prices which in turn will give an indication to the Fed which will decide on the rates next September 16th. However, the data on the calendar will be the main indicator of the inflation rate tomorrow on consumer prices. But today is also the day when the Department of the Treasury, driven by Scott Bessen, will launch the new operation of buyback of 10-20 year Treasury bonds for $6 billion, triple its last operation. The Treasury said last month that it would double the size of its buybacks of long-dated securities to at least $4 billion in the next quarter in an effort to shore up liquidity. This came after a sharp sell-off in U.S. Treasury bonds that pushed 30-year yields to their highest level since 2007. Some analysts, however, expected a larger purchase, in the order of $8-10 billion. Treasury yields rose after the announcement. The benchmark 10-year yield reached 4,8528%, the highest level since November 2023. The Treasury's quarterly earnings report is due after the close of official trading. Oracle infrastructures , which will instead provide clues for the tech sector which is nevertheless resisting the storms.
At the Milan Stock Exchange, eyes are on the banking game of chance. Purchases are being made in Lottomatica, Snam, and Leonardo.
At the Milan Stock Exchange, all eyes are still on the bank risk on the day of theIntesa Sanpaolo shareholders' meeting (+0,18%) which gave the green light to thecapital increase at the service of the takeover bid on Banca Monte Paschi Siena (+0,30%). The Siena-based bank announced that it has filed documents with Consob regarding the voluntary public exchange offer for Banco BPM (-0,37%) and those relating to the public tender offer for Banca Generali (+0,30%). The print He writes that the Government will not exercise its Golden Power of control over Intesa's offer for MPS before the operation has been examined by the ECB and the European Commission.
Among the best Italian large-cap stocks, it moves in positive territory Lottomatica, showing an increase of 3,57%. Money on Classic Ferrari for sale, which recorded a rise of 2,05%. A decidedly positive balance for Leonardo, which boasts a growth of 1,73%. Good performance for Snam, which grows by 1,54%. Weak Post e Tim.
The strongest sales are instead seen on Moncler, which continues trading at -2,86%, Buzzi, which marks a drop of 1,43%. Small loss for B for Bank, which trades at -0,96%. Greater declines, however, are seen on Rcs, which continues the session with -2,54%, Interpump, which suffers a decline of 1,85% and Ferragamo, which recorded a decrease of 1,72%.
(Last updated at 14.50pm)
