Weak stock exchanges, inflation and Evergrande are back in focus

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A minus sign for European stock exchanges, which choose caution in the middle of the quarterly season, their eyes on inflation and the crisis of Evergrande which returns to worry, with the shares collapsed on the stock market on the day of their return to trading. A negative sign also for the FTSE MIB, after the good performance on the eve of the year, the best in Europe, with the main index just a stone’s throw from the highs reached last August. Investors espouse a cautious attitude, despite the quarterly published in these days testify to a picture in full recovery. In the States, for example, about 82% of the companies that announced the numbers that beat expectations.

Inflation is once again worrying

However in the evening the Federal Reserve, in his Beige Book, highlighted that the US economy is progressing at a modest to moderate pace, suffering from the problems related to production both due to lack of manpower and shortage of components, both for the outbreaks of Covid. The Fed also stressed that in most districts the increase in demand for goods and raw materials is pushing inflation to very high levels. This raises concerns that the bank may backtrack on ultra-accommodative monetary policy much more decisively than indicated in the past few weeks. Also for this reason i bond rates: those US at ten years have gone above 1.67% yesterday, to now fall back to 1.65%. Important US data on unemployment claims are on the calendar.

FTSE Mib stock market trend

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In Piazza Affari the banks are weak with Unicredit in sharp decline pending news on the Banca Mps front. Generali is subdued after the news that the Delfin by Leonardo Del Vecchio he bought more shares, so as to rise to 5.52% of the capital and thus push the share of the consultation agreement, in which Francesco Gaetano Caltagirone and Fondazione Crt are also present, to 13.31%. The Diasorin and Italgas are in contrast

Evergrande collapses on the stock market upon returning to trading

Return to the stock market in heavy red for Evergrande. The stock of the Chinese real estate giant, with a debt of 260 billion euros, collapsed until it lost 10.5% in the first trades on the Hong Kong Stock Exchange. The potential bankruptcy of the real estate group, one of the largest in China, threatens the rest of the Chinese economy with a possible domino effect. The group suspended trading on October 4 after several loan repayments failed. Evergrande had announced Wednesday evening that trading of the securities on the stock exchange would resume today but warned, however, that it may “not be able to meet its financial obligations”. Despite the storm on the financial markets in September, Beijing has not yet clarified whether or not it will come to the aid of the now on the brink of bankruptcy. Especially since the group has announced the non-sale of 50.1% of the capital of one of its subsidiaries to the Chinese promoter Hopson.

On the exchange rate, the euro changes hands at 1.1639 dollars (yesterday closing at 1.1645 dollars) and 132.74 yen (133.001), while the dollar-yen is equal to 114 (114.217). Finally, oil is sluggish after the good performance of the eve pushed by US inventories, which fell in the face of a wait for an increase: the December delivery contract on the WTI drops 0.43%, settling at 83 dollars a barrel.

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