FTSEMib starts closing November with a decidedly positive performance, which adds up to the +9.7% achieved in October.
In the monthly “Italian Times” column, Massimo Trapattoni – Head of Italian Equities at Kairos A report has been written This month has been eventful for the markets due to corporate reports and inflation data slowed down for the first time. The expert pointed out that for the Italian companies, the third quarter recorded a better-than-expected performance, but not enough to believe that we have exited the stage of uncertainty that unfortunately still weighs on the companies’ growth prospects.
Based on these indicators in the following analysis offered by Massimo Trapattoni Some investment advice for the next few months.
November was an eventful month for the markets Corporate reports and inflation data slowed for the first time.
European stock exchanges confirm their agile moment, with relative outperformances than US indices. Over the past month, the FTSEMib Index is up about 8%, the DAX is up 9%, while the Nasdaq and S&P 500 are up 4% and 5%, respectively. This rally was driven by six consecutive weeks of short covering (For short selling, the seller borrows the securities and immediately sells them in the market, with the aim of buying them back in the future at a lower price), 50% of short positions canceled, 5 billion calls bought. Many companies in the old continent also have a special advantage due to the depreciation of the euro.
there However, the password remains “warn” Since then, although there have been signs of recovery, we are still in A very complex macroeconomic environmentwith geopolitical tensions, the energy crisis, and the ongoing Ukraine-Russian war.
but me Third Quarter ReportThere have been several claims by companies that they are not able to achieve the profits expected by their initial estimates that were put on the market. but These earnings warnings are not yet a clear sign of a serious slowdown in the economy.
In light of the current situation, the So the year 2023 remains a big question mark Where on the one hand we have analysts who have begun to lower their estimates, on the other hand, lower growth forecasts, without reflecting the most likely recession with the subsequent decline in sales volume.
sectional banks Well reported because of the good interest margins and alsothe cars Its performance has been thanks to continued demand and the easing of logistical issues that prevented many cars from being produced to order. sector companies oil They achieved excellent results due to the golden moment the industry is going through. The situation is different for consumer goods sector which suffered a contraction in margins due to the increase in raw material prices; The same goes for Strip servicesas the cost of energy continues to rise.
A month has passed since Giorgia Meloni received the bell at Palazzo Chigi from Mario Draghi. The Cabinet convened on November 21 and one was approved budget maneuver Which amounts to 35 billion euros.
In this context, even if the spread is closed, Markets remain on the window, awaiting central bank choices that are likely to be the true balance.