Friday, February 26, 2021
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Nasdaq falls again but Powell reassures the US

Another drop in Big Tech and Big Pharma on Wall Street that starts a strong rotation but the Fed President cools the fear of inflation and confirms the expansionary monetary policy – Piazza Affari in red despite the leap of Atlantia, Unicredit and Exor

Jerome Powell’s reassurances to the US Congress on the Fed’s monetary policy limit, but do not stem, sales on Wall Street technology stocks, which also weigh on the mood of European markets. The American stock market is falling and the Nasdaq it yields more than one percentage point, while the squares of the Old Continent closed in contrast, after many fluctuations during the session. At the extremes they are placed Amsterdam -1,15% e Madrid + 1.71%. Minus sign for Frankfurt -0,62% e Milano -0.3%, while Paris e London show progress of 0.22% and 0.21% respectively.

The focus of investors remains on inflation and on the increase in the yield of government bonds, especially in the US, but signs of a recovery in prices also came today from the euro zone. In fact, the annual inflation rate for the area stood at 0.9% in January 2021, compared to -0.3% in December. The previous year, however, it was 1.4%. The annual inflation rate for the European Union was 1.2% in January 2021, up from 0.3% in December. A year earlier it was 1.7%. In any case, these are numbers that are far from the ECB’s target, although yesterday President Christine Lagarde, in light of the pressure on sovereign bond yields, said that the situation is being monitored closely.

Overseas, where signs of recovery and price dynamics appear much more lively, Fed Chairman Powell throws water on the fire and says that the US economic outlook is still “highly uncertain” and inflationary pressures are not “a threat”.

“After the significant drops in the spring – he says – prices have partially rebounded in the rest of the year. For some sectors particularly affected by the pandemic, however, prices remain particularly low. Overall, on a year-over-year basis, inflation remains below our target of 2% over the long term ”. The Fed, on the other hand, has over the past few months revised its approach to inflation, which may exceed 2% for a period of time without monetary tightening being adopted. As for the important parameter of the labor market, Powell says it will take some time before it is fully restored. Moral: the economy will improve in 2021, but there are no changes in sight in the Fed’s monetary policy.

In the equities, a rotation on the stocks is in any case in progress and the technology, which has been heavily purchased in recent months, are currently the target of sales. On the contrary, airlines, travel and tourism start again and breathe.

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The Faangs continue their session in decline at the moment. Sales are striking too Tesla, -2.3%, after yesterday’s crash also following the volatility of bitcoin, the cryptocurrency in which Elon Musk’s company recently invested 1.5 billion dollars.

The bitcoin today it fell 17%, with investors nervous about extremely high valuations, triggering the liquidation of leveraged bets and a consequent sell-off in the cryptocurrency markets. For the largest cryptocurrency in the world, the worst daily decline in a month is outlined, with a low of 45,000 dollars. With today’s contraction, bitcoin has lost more than a fifth compared to the record of 58,354 dollars set on Sunday, highlighting the volatility of the emerging asset, which has still risen by about 60% since the beginning of the year.

On the foreign exchange market theeuro-dollar it has moved little, in the 1.216 area, while the pound continues to strengthen, moving to its highest level for about three years. over 1.4 against the greenback. The massive vaccination campaign implemented in Great Britain, which gives hope for a rapid recovery of the economy, gives sprint to his majesty’s currency.

The raw material they are slightly down, after the great progress of the last sessions. Brent is moving above $ 64.1 a barrel, while spot gold is trading down to $ 1804.30 an ounce.

In Piazza Affari confirms itself as the queen of the list Atlantia, + 3.17%, awaiting the binding offer of Cdp-funds for 88% of Aspi. Yesterday the meeting of the Cdp board remained open to continue this afternoon “in order to allow the concomitant nature of the decisions of all the members of the consortium”. The stock is also affected by the positive effect of Gavio’s takeover bid on Asthma, at € 25.6 per share. After yesterday’s exploit, the stock closes slightly below the offer price at 25.54 euros per share (-0.55%).

Among the banks it sparks Unicredit + 2.15%. Positive Understanding +0,57%.

Shop on Unipol +1,59%.

In evidence Exor + 1.77%, with Stellantis which registers a progress of 0.51%.

Leonardo closed with a gain of 1.15%, after having pushed higher on the expectation of a board of directors that turns on the green light at the listing on the NYSE of the American subsidiary Drs.

Oil stocks are contrasted: Eni +0,73%; Saipem -2,69%.

At the bottom of the list they are still Amplifon -4,61% e Diasorin -2,8%. Stm it loses 2.69%, driven by the drops in technology. Profit-taking ditches managed savings, while utilities are mixed.

Out of the main basket it sinks Bialetti -28%.

It goes up spread at 96 basis points, between the Italian and German ten-year period (+ 2.85%) and the BTP rate closes at + 0.64%.

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