(Il Sole 24 Ore Radiocor) – Closing up for European stock exchanges, encouraged by the positive performance of Wall Street which celebrated both the better-than-expected quarterly figures, and the data on unemployment claims, which fell to their lowest levels since the beginning of the pandemic. Statistics that did not fuel inflation fears, after the eve of the eve it emerged that the consumer price index in September, while settling at high levels (+ 5.4% per annum), did not flare up. In Milan the FTSE MIB gained 1.23%, while lo spread it was brought to 101 points.
US subsidies to low since the beginning of Covid, rates in reverse
The European stock exchanges started higher, in the wake of the dusting closure of Tokyo (+ 1.46%) and the progress recorded on the eve of Wall Street, after three consecutive drops. Investors heaved a sigh of relief after US inflation settled at 5.4% per annum in September, which was high, but not alarming, as some economists feared. In addition, even from the minutes of the Federal Reserve there was no shocking news: the American central institution could revise the level of asset purchases, now equal to 120 billion dollars a month, starting from November. But this scenario is already taken for granted by the markets. The indexes of the Old Continent then picked up their pace in the afternoon, driven by the opening of Wall Street, where the round of quarterly results were better than expected, as much as the data on unemployment claims, which have fallen to their lowest levels since the beginning of the pandemic.
In the week ending October 9, the number of workers applying for unemployment benefits for the first time fell by 36,000 to 293,000, doing better than experts expected. In addition, again on the macro front, it emerged that in September US producer prices rose less than expected: 0.5% compared to the previous month, and 8.6% compared to a year earlier. However, in the latter case it is the largest increase since the statistics were recorded, ie since November 2010. On the other hand, this did not cause alarm on inflation and the consequent maneuver of the Fed. US bond rates continued to decline like on the eve: those on the ten-year period are below the 1.52% threshold.
Big banks are on the rise on Wall Street
The US market (Wall Street closed positive with Dow Jones at + 1.55%, Nasdaq at + 1.73% and S&P 500 at + 1.66%) was dragged up by the stocks of the companies that posted better accounts expectations and in particular those of the big banks. Wells Fargo it reported profits up 59% to $ 5.12 billion, $ 1.17 per share, in the third quarter. Citigroup reported earnings up 48% and revenues down 1%, results above analysts’ estimates. Also Bank of America beat expectations with earnings up 58% to $ 7.7 billion in the third quarter, above estimates, and revenue up 12%, also above estimates. Finally it is under the lens too Morgan Stanley, after the institute closed the third quarter of 2021 with earnings per share of $ 1.98, higher than analysts’ estimates ($ 1.69 per share).
Banco Bpm runs in Piazza Affari, with Fineco also in evidence
The best title of the Ftse MIb was that of Banco Bpm(+4.3), driven by a favorable report from Jefferies (‘Buy’ rating and target price at € 3.50). Experts believe that the market has not taken into account the value of internalizing the insurance business. In addition, the industrial plan, expected by the end of November, should act as a catalyst. Jefferies analysts have also initiated coverage on Banca Pop Er (+ 1.78%), with a ‘Hold’ rating and an indication of a targe price of € 2.30. In the credit sector, they did well Intesa Sanpaolo (+ 1.14%) and the Unicredit (+ 0.5%), the latter always awaiting developments on the front Bank Mps (inv). Mediobanca (+ 1.49%) has regained the 10 euro threshold, below which it had fallen in recent days. In the meantime, the date for calling the assembly, set for 28 October, is approaching. They also distinguished the Finecobank (+ 3.7%), after filling up orders for senior preferred instruments. The institute has announced that it has received requests for over 2.15 billion for the 500 million issue of FinecoBank. Although oil slowed down in the afternoon, shares in the oil sector did well, with Eni up by 1.3%. They also distinguished the Nexi (+ 2.7%) and theStmicroelectronics (+ 1.5%), the latter despite concerns about the lack of chips, also denounced by Industrial Name (+ 0.11%) which in October will be forced to close factories in Europe for 8 days due to the lack of components. News that caused the company’s shares to skid during the morning.