(Il Sole 24 Ore Radiocor) – With their eyes on the news related to Covid, but for a day orphaned by Wall Street closed for Thanksgiving, the European stock exchanges are moving in positive territory, driven by the rebound of the techs. Fears for new ones remain in the foreground possible lockdowns, which would hold back the momentum of the economic recovery, and the next moves of the Federal Reserve. The minutes of the latest meeting of the American central bank and the public statements of several governors leave the door open to a rate hike as early as the first half of 2022. In the US, these are key days to understand the trend in retail spending and confidence of families, which will be measured tomorrow with Black Friday.
Covid and monetary policy
The focuses of investors these days are two. On the one hand, the trend of the pandemic, with the fourth wave forcing more and more European states to consider lockdowns. On the other hand, the monetary policy of the Federal Reserve, which in the face of a strong jump in inflation and a more tonic labor market (yesterday requests for unemployment benefits fell to a minimum since 1969) could become more aggressive than expected: the market is starting to fear a faster reduction in pandemic stimuli (currently the Fed reduces purchases of securities by 15 billion per month) and a faster rate hike, with three hikes already discounted in 2022.
Telecom always under the lens, Enel runs
In Piazza Affari, after some initial uncertainty, Telecom Italia resumes running, after the jump of 15% on the eve, triggered by the hypothesis that the Kkr fund could put on the plate a much higher price than the one initially indicated at 0.505 euro per share. The situation, however, is fluid with the Government that could exercise the golden power and with Kkr that could back down since the announced offer is not binding. In addition, a board of directors requested by 11 directors of the company is scheduled for Friday 26 November, which could corner the CEO, Luigi Gubitosi. Ferrari started racing again, Enel also in tune in view of the reorganization of the group that will pass through the spin-off and the opening of the capital of the company into which the electric mobility activities from EnelX will be spun off.
Tokyo closes higher encouraged by US data
The Tokyo Stock Exchange closed 0.67% higher the day after substantial losses, encouraged in particular by positive US indicators and the continuing bearish trend of the yen against the dollar. The leading Nikkei index, which fell nearly 1.6% yesterday, closed at 29,499.28 points. The broad Topix index regained 0.33% to 2,025.69 points. A series of indicators released yesterday provided an overall positive picture of the US economy, including weekly jobless claims to a 52-year low and an acceleration in household consumption in October. Wall Street, which generally sets the tone for Tokyo tomorrow, also appears to be getting used to the increasingly likely prospect of US monetary tightening.