June 30, 2022

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Stock markets today January 7th. EU price lists drop, pending US labor data

Milan – Confidence among European stock exchanges waned in the wake of a session that saw concern over the acceleration in December by the Federal Reserve on its roadmap to raise interest rates. The highlight of the markets today is the US employment report released by the US Department of Labor in December, which is one of the most closely watched indicators to test the pace of the US recovery.

European indices fell: Milan gain 0.34% London Lu 0.07%, Frankfurt returns 0.48%, Paris 0.06%. In Asia is not very impressive Tokyo, with the Nikkei closing at -0.03% while the government approved new restrictions in the country to contain the Covid emergency.

Among the macroeconomic data, according to Eurostat figures, annual inflation in the eurozone will reach 5% in December 2021, up from 4.9% in November. Given the main components of inflation in the eurozone, according to the European Union’s statistical office, energy should register an annual inflation rate of 26% (in November it was 27.5%), followed by food, alcohol and tobacco. (3.2%, compared to 2.2% in November), and non-energy industrial goods (2.9%, versus 2.4%) and services (2.4%, versus 2.7% the previous month).

German industrial production in November registered a 0.2% monthly decrease. The Federal Statistical Office adds that the decrease on an annual basis was 2.4% compared to February 2020, that is, the month before the first restrictions were imposed in Germany due to the epidemic, and the decrease amounted to 7%.

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From the US, investors are watching with interest rising mortgage rates, which are also rising in anticipation of a general rise in interest rates. This week, levels hit their highest since May 2020, with the 30-year fixed rate loan at 3.22% from 3.11% last week. An increase that will place constraints on the dynamism of the US real estate market, which has experienced a strong acceleration especially in the past two years.

There is also a respite due to higher yields resulting from potential moves by the Federal Reserve. Italian ten-year bonds fell to 1.26% and diffuse It fell to 32 points after it recorded 139 yesterday. Among the currencies, the euro is close to 1.13 dollars, the exchange rate of the euro / yen is 130.99 and the dollar / yen is 115.91.

Tensions and riots in Kazakhstan and production problems in Libya due to conflicts between militias are paying the price petroleum Priced at $80 a barrel. Texas WTI is changing at $80.09 (+0.79%) after gaining more than 6% in the past four sessions while Brent crude is trading at 82.6 (+0.8%). The increase in production decided by OPEC + is not enough to calm the market, which, according to experts, is unlikely to be realized in the short term.