Stock markets, the recovery continues: Milan closes at +1.1%. Wall Street in the red, Tesla collapses

Unemployment stable in Germany, inflation slows down

On the macro front, the unemployment rate in Germany remained stable at 5.5% in December. Furthermore, consumer prices in the country should decrease by 0.8% in December compared to the previous month and the inflation rate is estimated to slow down to +8.6% on the year. The data is better than the consensus, which estimated a monthly drop of 0.7% and a slowdown in the annual rate to 8.8%. This is a notable slowdown from 10% in November and +10.4% in October. In China, on the other hand, manufacturing activity worsened in December, with the index reaching 49 points from 49.4 the previous month, marking the fifth consecutive deterioration. Price data helped a rise in German government bonds with the 10-year Bund bringing the yield below 2.4%.

In Milan, Pirelli stands out, banks run on MPS dossiers

In Piazza Affari, car and banking sector stocks travel at a rapid pace. Good Pirelli & C and Stellantis. Registrations in Italy of cars with group brands increased by +3.49% in December. However, they did worse than the market, which improved by 20.99%. Also in France the group’s sales were lower, in terms of percentage change, than the market trend even if the analysts of Equita do not believe that this could influence the guidance of the 2022 results. It also remains in the spotlight Mps Bank, on the eve of a leap forward of more than 6%, after the bank’s reassurances on business continuity: according to Il Messaggero, the group could sell part of its branches (Unicredit and MedioCredito Centrale involved) and a streamlining of assets could favor the merger into another banking group such as Bper Banca or Banco Bpm. On the latter, it is worth noting the maneuvers in the shareholding structure in view of the renewal of the board of directors in 2023: the consultation pact between the Foundations and the social security institutions brings together 8.2%. Out of the Ftse Mib he’s back racing Juventus FCwith speculation of a delisting plan under consideration by shareholder Exor after the club’s legal woes. Good Ariston Holding which completed the acquisition of Centrotec.

BTp, yields fall after German inflation

The spread between BTPs and Bunds on the Mts secondary market of European government bonds fell at the end of the session. In the end, the yield differential between the 10-year benchmark BTP (IsinIT0005494239) and the same German maturity is indicated at 210 basis points from the 214 basis points of the last reference recorded yesterday at the closing. The yield of the 10-year benchmark BTP also fell, indicated at 4.48% from 4.60% in the previous final.

Profits were taken on the euro and the pound, the yen strengthened

The euro, as well as the pound back against the dollar. According to the experts, the two currencies are affected by profit-taking after the gains recorded in the month of December. Thus the European currency, settling in the 1.05 area, falls by around 1.2% against the greenback, while the pound yields 1.15%, changing hands in the 1.19 area. Meanwhile, the dollar/yen cross rose to 129.94 from 130.69, reflecting the hypothesis that the Central Bank of Japan may take steps to abandon the ultra-expansionary monetary policy, following the December decision to raise the tolerance of ten-year government bonds to 0.5% from the previous 0.25%. The yen, which strengthened by up to 1% against the US currency to its highest level since May, gained against all Group-10 currencies, especially the commodity currencies of Australia, New Zealand and Canada .

Energy, both gas and oil prices fall

Oil prices are down by about 2 percentage points both in London (84 dollars a barrel) and in New York (78 dollars a barrel). Natural gas prices continue to fall in Amsterdam. The reference contract closed at 71.3 euros, down by 7.3% compared to the closing values ​​of the previous session. These are the lowest since February 16, 2022, therefore prior to the start of the conflict between Russia and Ukraine. Since the last pre-Christmas session, prices have fallen by a total of 14% on the TTF platform.