A series of good news and well-founded hopes supported European stock markets today, which closed higher, recovering most of last week's losses.
Piazza Affari is the queen of Europe and appreciated by 1,65% to 24.565 basis points. Progress is solid in Amsterdam +1,59%, Frankfurt +1,33%, Madrid +1,18%, Paris +0,98%, while outside the eurozone London shines +1,07%, after the holidays for the Queen and on the day of the no-confidence vote in Boris Johnson.
China, the ECB and Wall Street give the charge
They were to say good morning Asian earnings and news from China, in particular the training of anti-Covid measures and a progressive return to normality. Beijing has also decided to ease the regulatory pressure on its hi-tech companies.
The mood then strengthened in the session with the rumors of the Financial Times related to a shield from the ECB to protect the weakest countries by a surge in debt financing costs, in a context of the start of normalization of monetary policy. Frankfurt will discuss it on Thursday, at the meeting in which it should confirm the end of bond purchases and perhaps provide new clues on rate hikes.
Finally, he offered valuable support the matching opening of Wall Street, also following what the WSJ writes, according to which the Chinese authorities are closing the investigation against Didi: the Asian Uber is one of the tech companies targeted by the government and had been at the center of a cybersecurity investigation since the day of its IPO. The news is celebrated in New York with an increase of more than 50%.
Among other titles seeks redemption Tesla +0,91%, after Friday's losses on Elon Musk's economic alarm and the decision to cut the company's staff. The social Twitter, ended up in the entrepreneur's sights, instead it loses 4% as Musk threatens to withdraw his offer of 44 billion dollars if the little bird does not provide all the data on spam and fake accounts.
T-Bond, the 3-year yield exceeds XNUMX%
Not all the risk elements of this phase have disappeared naturally. In particular, he looks forward to it the data on inflation and stars and stripes which comes out on Friday and may help you understand the Fed's next moves, whether the price run has peaked or not.
While waiting the Treasury bond yield at 3 years it moves above 18% for the first time since May 5. With him, all securities from 30 to 3 years are currently showing yields above XNUMX%.
Among the raw materials, oil type Brent trades over $119 per barrel, slightly below the highs above 120 dollars, reached following the decision of Saudi Arabia to increase prices for the month of July.
On the foreign exchange market the euro remains in the 1,07 area against the dollar waiting for the ECB.
Piazza Affari toned with banks and Iveco
They contributed in a decisive way to giving Piazza Affari a sprint Iveco +4,7% and financial stocks. Nexi appreciates by 3,83%. Banks celebrate the rumors about the ECB shield. In particular, Bper rises +3,65%, after it completed the acquisition of the controlling interest in Carige, paving the way for the launch of the mandatory takeover bid on the remaining part of the Ligurian bank's capital. The spotlight of investors is now focused on the presentation of the new industrial plan on June 10th.
Well the banks: Intesa +3,27%, Banca Generali +3,01%, Finecobank +2,97%, Unicredit +2,64%, Banca Mediolanum +2,38%.
I am alone three blue chips in red starting from Interpump -1,11% Leonardo loses 0,53%, after the gains of the last few sessions due to rumors about an offer by the German Rheinmetall for 49% of Oto Melara. The decision to sell doesn't seem around the corner and so profit-taking sends the stock into the red. Atlantia is practically flat -0,09%.
Out of the main basket Mondadori rises by 2,79%, with the news ofpurchase of 51% Star Comics Editions, the main Italian publisher of comics. The company was valued at 28 million euros. With this step, Mondadori has achieved a leadership position in the national comics sector, which shows growth of 175% in the three-year period 2019-2021 and 30% in the first 4 months of 2022, according to Nielsen Bookscan data processed by the AIE Research Office.
Declining spreads with the ECB umbrella
The fact that the ECB is working on a proposal to create a new bond purchase programme, if necessary, in support of countries grappling with growing financing costs such as Italy, helps the secondary tricolor.
The spread between 10-year BTPs and Bunds of the same duration drops to 209 basis points (-1,75%), with rates slightly lower than on Friday. The Italian 3,42-year bond closes with a yield of +1,32%, the German one of +XNUMX%.
