Last session of the week in decline for the European stock exchangesthat so widen the performance gap weekly with Wall Streetwith US stock markets having achieved a powerful post rally presidential elections and at the meeting of Fed (even if they took a little breather on Friday). The concerns of European investors are weighing on the sentiment of potential new duties which could be promoted by the new American president.
Negative reaction also to the announcement of the details on new stimuli from Beijing, deemed disappointing by most observers, who hoped for measures to support private consumption by families. In particular, the Chinese government has announced a multi-year program to refinance peripheral debt with the issuance of new bonds amounting to 6 trillion yuan (839 billion dollars), thus making it possible to expand the indebtedness of local governments, the ceiling of which has been at a standstill since 2015. The new securities can be used, for the next three years, to be exchanged with other debt securities already held by banks and local authorities and which are considered to be in difficulty, with the aim of lightening their balance sheets.
Today’s session
Between the European price lists the negative performance of Frankfurt stands out, which fell by 0.76%, London fell by 0.84%, and a sharp decline for Paris, which marked -1.17%. Closed lower for Business Squarewith the FTSE MIB leaving 0.48% on the floor; along the same lines, the FTSE Italia All-Share yields to sales, closing at 35,970 points. The FTSE Italia Mid Cap consolidates its previous levels (-0.11%); the FTSE Italia Star fell (-1.1%).
At the top of the rankings most important titles in Milanwe find Banca MPS (+3.11%), Pirelli (+2.78%), Prysmian (+2.20%) and Saipem (+2.15%). The strongest sales, however, hit Unipol, which ended trading at -6.12%. Azimut crash, showing a fall of 5.36%. Letter on BPER, which recorded a significant drop of 4.38%. Iveco falls, with a decline of 3.94%.
The Fed and the implications from Trump
Investors are wondering about monetary policies of central banks, after Fed Chairman Powell said it would It is appropriate to proceed more slowly with the cutsafter the rate cut announced on Thursday. In particular, the US central bank cut rates by 25 basis points, to 4.50-4.75%, in line with expectations.
In the press conference, Powell he tried to create an optionalityboth for the short term and for next year. He said a further cut in December would depend on data coming in over the next six weeks and that the election result he will not have “no impact” on Fed policy in the short term. Powell refused to be drawn into the implications of the election outcome for monetary policy, saying “we do not know the timing or substance (of Trump’s policies), and we do not guess, speculate or assume.” However, it seems likely that Fed officials are already factoring the likelihood of higher tariffs, looser fiscal policy and more restrictive immigration into their projections. This could lead to a slower pace of rate cuts next year and/or an earlier termination.
Italian banks
This week they have presented data from numerous large-cap Italian companiesbut the focus was above all on the banking sector, thanks to the good results of the credit institutions and the announcement of Banca BPM’s takeover bid for the asset manager Anima with the aim of creating a “national champion” in Life Insurance and in Asset management.
Starting from the last one that released the accounts, MPS reported a 31% year-over-year earnings increase in the third quarter, higher than market expectations, thanks to strong net interest income performance. BPM desk is convinced that this year it will be able to exceed the earnings per share forecast despite the downward trend in interest rates, after closing the nine months with a net profit up 80% to 1.7 billion (+25% adjusted level).
BPER it ended the same period with a net profit of 1.11 billion euros, up 2.2% on year, confirming all the items of the guidance for the whole year including the – improved – one on the main capital ratio. UniCredit improved its net profit guidance for 2024 to over 9 billion euros, or approximately 10 billion on an adjusted basis, after a strong third quarter.
