Week 21 October / 28 October 2024

The international scenario continues to be compromised in crisis areas and no solution hypothesis seems close.

Moreover, Commodities in the last few days have not continued to rise but have moved sideways, Gold $2,766 an ounce, Oil $71.86 a barrel; tensions in the markets while remaining so seem less pressing.

Silver is also appreciating, now over $34.

Obviously, the international scenario now appears to be conditioned by the outcome of the U.S. polls, which could significantly affect long-term trends as opposed to short-term trends (which are expected to be positive in any case).

UniCredit S.p.A. recently launched a new mixed-rate bond with a maturity date set for Oct. 14, 2037, designed to offer both an initial fixed-rate component and a variable rate thereafter.

UniCredit is particularly known for its “pan-European” bank model, which aims to provide clients with integrated solutions internationally. With its strong presence in European markets, UniCredit is also a major issuer of bonds, targeting both institutional and retail investors, as seen in recent issues of mixed-rate bonds.

The objective of the issuance of this new bond is to provide investors with a structured product that can generate returns in a challenging market environment of fluctuating interest rates and persistent inflation.

Thebond is listed on Borsa Italiana’s MOT market and EuroTLX’s Bond-Xmarket and will be tradable through any authorized intermediary.

UniCredit’s mixed-rate bond is an attractive solution for those who want a product with a constant annual return in the first few years and a variable earnings opportunity thereafter, with a guarantee of the nominal principal at maturity.

Week 14 October / 21 October 2024

Internationally, the crisis areas have not improved; rather, clashes between different factions seem to be escalating and now, at least apparently, no longer significantly affect market performance.

The latter, at least in the last month, seem to have an uneven direction but nevertheless oriented toward a moderately bullish trend that could last until the end of the year.

Week Oct. 7/Oct. 14, 2024

The international situation has deteriorated further in all crisis areas producing uncertainty and volatility in markets, most evident in eastern markets.

This uncertainty is also due to mixed signals from the Central Banks; in fact, the FED is considering how to proceed with regard to rate cuts as the U.S. economy shows no signs of slowing down.

While there are ongoing assessments of the possibility of cross tariffs between the EU (on cars) and China (on French spirits) that could disrupt markets.

Week Sept. 30/Oct. 7, 2024

Markets selloff in the last week, grappling with slowdowns in stimulus by the Chinese government, which had propelled eastern stock markets in previous weeks, and tensions in the Middle East as the conflict widens to Lebanon.

Israel, in fact, continues its overland operations in Lebanese territory, while skirmishes with Iran to which Netanyahu promises revenge after the missile attack suffered by Tel Aviv in recent days do not subside.

Week Sept. 23/Sept. 30, 2024 Central banks did not disappoint expectations and spurred last week’s gains.  However, investor optimism lies elsewhere as well: in fact, the Chinese market woke up, recording its best week since 2015, buoyed by the government’s support for a cut on mortgage rates that restores serenity to the real estate market.

Continuous changes in the monetary policies of central banks, such as the European Central Bank (ECB) and the Federal Reserve (Fed), have led to significant fluctuations in interest rates, with a major impact on various sectors, including real estate. In recent months, the economic landscape has seen a significant shift, with interest rates beginning to show signs of decreasing after a period of steady increase. This turnaround has caught the attention of many, especially those who are considering buying a home or renegotiating their mortgages.

Week Sept. 16/Sept. 23, 2024 Taking center stage in the week just passed were undoubtedly the central banks.  The long overdue meetings did not disappoint expectations: both institutions cut rates, with the Federal Reserve showing more courage than the European Central Bank, cutting half a percentage point from the latter’s 0.25 percent.   As such, the economic slowdown in the EU area evidenced by real data in recent days is prompting European leaders to ask Lagarde for more accommodative economic policies soon.

Week Sept. 9/Sept. 15, 2024In theweek, critical issues inherent in international crisis scenarios (long-range weapons for Ukraine and tensions with Lebanon for Israel)appear to have increased
which do not suggest that a quick solution to the existing conflicts can be expected.  Scheduled for Wednesday, September 18, is themeeting at which the Federal Reserve will provide guidance on lowering rates (perhaps as much as 50 basis points in the current month), while on Thursday, September 19, it will be the turn of the Bank of England, which, however, is not expected to have an immediate effect since it has already made a reduction during the past month.
Obviously, the indications that the two institutions will provide on the medium-term outlook will also be important for the markets.   Meanwhile, the euro’s reaction to the European Central Bank’s rate cut has been muted because it has largely already been priced in by the market.
Where there were no firm indications from it for the near future, a slight increase in the inflation figure towards the end of the year could be produced.