The stock exchanges today, 14 October. Positive lists after a crazy session. The ECB is thinking about how to reduce the budget
[ad_1]
MILAN – Asia followed Wall Street, rising sharply, after the US lists marked one of the craziest days of the year: the S&P 500 lost more than two percentage points when US inflation data was released , which beat expectations and proved very strong despite the Fed’s efforts to contain them. The immediate reaction was to imagine new, strong, rate hikes and the effect was consequential. But then a rally started that caused the losses to be written off and the Wall Street index to rise by 2.6%.
Futures are still up today. Bounces from the Bloomberg the news that discussions are taking place within the ECB on the reduction of a balance sheet which – through quantitative easing – has reached 5,100 billion euros. The most hawkish of the governors would aim to start the sale of assets at the beginning of 2023, while maintaining the lever of rates the main to act in the field of monetary policy. The idea is growing that the best thing is to start reducing the balance sheet just as the level of interest rates is adjusted.
From Washington, the seat of the IMF meetings, the words of Governor Visco arrive: “It is not monetary policy that causes the fall of the economy. It is inflation that causes the fall of the economy because it takes away purchasing power, income . The Ukraine crisis also takes away certainty in international trade “, he said, recalling that for a country like Italy” you cannot have a broad-spectrum budget policy when you have a public debt like the one we have “. In Italy “there is a sharp slowdown in the economy after a year that was better than expected. These months until the summer have gone much better despite the very serious effects of the increase in the price of energy. For next year it will be very difficult to go much better than we think, that is, close to substantially zero growth. The IMF is a little more pessimistic. In reality, the uncertainty surrounding these forecasts is very high: we cannot take them as timely “.
China, inflation at the highest from Covid
China manages to keep inflation at lower levels than what is happening globally, especially in the US: in September, its annual growth was 2.8%, compared to 2.5% in August and in line with analysts’ expectations, but reaching the highest levels since April 2020. On a monthly basis, according to the National Statistics Office, the increase was 0.3% (+ 0.4% estimated and -0.1% for August). As for producer prices, the annual increase was 0.90%, at the lows of the last 20 months, from 2.3% in August and less than the consensus of 1%. On a monthly basis, there was a slowdown to -0.1% (-1.2% in August).
Asian stock exchanges follow Wall Street rally
Asian stock exchanges are rising sharply on Wall Street’s rallying close yesterday, in response to expectations of further massive interest rate hikes from the Fed. Towards Tokyo close the Nikkei gains + 3.32% . The Chinese financial markets are also very positive: Shanghai + 1.96%, the Shenzhen Szse composite index + 2.12%, in Hong Kong the Hang Seng rises to + 3.55%. Seoul’s Kospi also posted + 2.31%.
Oil slightly appreciating
Oil continues to rise very slightly on Asian markets, with US inventories rising more than expected and yesterday’s tensions between the US and Saudi Arabia over production. The contracts on WTI are sold at 89 dollars a barrel, gaining 0.10%, while those on Brent at 94 dollars, up by 0.04%.
Positive futures on Wall Street
Wall Street futures are proceeding in positive territory driven by the rally recorded yesterday at the close of the lists. At the moment the contracts on the Dow Jones mark + 0.60%, those on the S&P + 0.61% while on the Nasdaq + 0.55%.
[ad_2]
Source link
