Stock exchanges focus on the Fed cut, Nasdaq flies. Milan (-0.8%) weighed down by coupon detachment
The Ftse Mib is held by a technical decline of 1.13%. Overseas Alphabet leads the tech sector rally. Spread stable at 75 points but yields falling after Moody's improved its rating on Italian bonds. Gas at lows since May 2024 below 30 euros per Mwh
Le ultime da Radiocor
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(Il Sole 24 Ore Radiocor) - Wall Street closed positive. The DJ rose 0.44% to 46,448.27 points, the Nasdaq advanced 2.69% to 22,872.01 points and the S&P 500 climbed 1.55% to 6,705.09 points on a day when European stock markets closed positive overall. Driving the indices was the renewed confidence in a Fed interest rate cut in December. Meanwhile, the world's spotlight is on Ukraine as we wait to see whether a peace plan will be approved, possibly by Thursday 27 November (Thanksgiving Day in the US). Marco Rubio, the US Secretary of State, who was present in Geneva on the eve of the meeting to negotiate the peace plan with Europe, declared that it was 'the most productive meeting so far on Ukraine'. In the background remain fears of a possible bubble in the tech sector, especially those related to AI. Investor attention is also focused on Italian government bonds, after Moody's upgraded its rating on Italy's bonds on Friday evening, from Baa3 to Baa2. This is the first time in 23 years that the agency has raised its rating on Italy's government bonds. Against this backdrop, Piazza Affari (FTSE MIB) is held back by the shower of dividends: in fact, 12 big names of the main list are detaching their coupons, with a technical decline calculated for the Ftse Mib of 1.13%.
Wall Street accelerates
US equity indices, in particular the NASDAQ, accelerated, thanks to the rally of the tech and communications services sector. Among the best performers was Alphabet , up new highs on the back of last week's rises due to the launch of its latest artificial intelligence model, Gemini 3. Also in the spotlight Teslaafter CEO, Elon Musk, said the company is nearing completion of the A15 chip for artificial intelligence and is starting work on the A16. Flying Broadcom, other artificial intelligence-related stocks also did very well, such as Palantir Technologies, Qualcomm and Nvidia Corp. Adding to the bullish mood on Wall Street is the belief that the Fed is set to cut the cost of money at its December meeting. After the words of New York Federal Reserve Chairman John Williams, who on Friday left the door open to an interest rate cut, on Monday, Fed board member Christopher Waller also expressed support for another cut. Fed funds futures traders increased their bets on a December cut, discounting a probability of more than 75%, as shown by the Cme Group's FedWatch. Expectations had fallen sharply in recent weeks: last week, they were around 40%.
Waller, concerned about labour market, I support Fed rate cut
"My concern is the labour market. Therefore, I am favourable to a rate cut". Federal Reserve Board member Christopher Waller said this in an interview with Fox News. Waller pointed out that 'September's employment numbers are likely to be revised downward', also warning that job growth 'is concentrated in two sectors, and that's not a good sign'. The US central bank board member's words have encouraged futures on Wall Street, which is looking for a rebound in the Thanksgiving week. The stock market will be closed on Thursday and close early, at 1pm (7pm in Italy), on Friday. Stocks are looking to consolidate Friday's rally.
In Milan, up Stellantis and Campari, down Leonardo
On Milan's equities, news of a possible truce between Russia and Ukraine weighed on defence stocks, with Leonardo - Finmeccanica trailing at the bottom of the Piazza Affari, at lows for about three months (below 45 points). On the opposite front, Interpump Group closed in the lead, along with Stellantis and Saipem. Positive session for Davide Campari on rumours oftalks to divest three Italian bitters brands: Averna, Braulio and Zedda Piras. Banks contrasted, with Mediobanca the worst in the sector and Banco Bpm up slightly as the market ponders possible extraordinary transactions in the wake of recent interest from the ceo of Credit Agricole.
Euro stable at $1.15, gas at lowest since May 2024 below 30 euro/mwh
On the foreign exchange front, the euro was stable: it moved above 1.15 (Friday at 1.15). On the decline the oil, with wti around $58 per barrel and North Sea Brent above $62. gold is little moved above $4,000 an ounce. Gas prices fall below €30 for the first time since May 2024, as we look ahead to peace talks between Russia and Ukraine
