Jerome Powell initially warms Wall Street, but leaves European lists cold, weak at the end. The exception is Piazza Affari, +0,73%, 22.044 basis points, which appreciates above all with oil and financial stocks, also thanks to the drop in the spread. Bonds archive a positive session, after the Treasury, in the morning, placed 6,5 billion annual BOTs with a yield down by 13 basis points, at -0,061%, the lowest level since May 2018, before the establishment of the Conte government.
On the secondary, the ten-year yield is 1,73% and the differential with the Bund is reduced by 2,81% to 203,9 basis points. Italian paper maintains appeal, in the expectation of an ultra-expansive policy by the ECB and after the narrow escape of an infringement procedure, despite the fact that the economic climate remains stagnant. According to the new forecasts of the European Commission, GDP will rise by 0,1% in 2019 and 0,7% in 2020 and Italy will remain last for growth in the EU. Germany is penultimate (+0,5%), which however will be able to recover in 2020 (+1,4%).
Frankfurt does not like the prospect, which is down 0,48% on the stock market today. Weak Madrid -0,28%. Without petrol Paris -0,08%. and London -0,07%. Wall Street starts positive and ignites with the reading of the words of the president of the Fed, in hearing today and tomorrow in Congress. The "headwinds" that Powell sees for the stars and stripes economy, despite the job data, galvanize the S&P 500 which, for the first time in history, reaches 3000 points. At the moment the three main indices are more tepid, but they are moving in positive territory in any case. The more concrete possibility that the American central bank will adjust the cost of money downwards at its meeting at the end of July penalizes the dollar, which is losing share against the main currencies. The exchange rate of the euro with the greenback rose to 1,124.
On the other hand, raw materials are pressing hard on the accelerator. Gold moves up in the area of 1411 dollars an ounce. Oil surged on the back of a larger-than-expected US inventories contraction and feared storm in the Gulf of Mexico. Brent appreciates by 2,93% and travels at 66,04 dollars a barrel; Wti Crude +2,94%, 59,53 dollars a barrel. Price increases favor Saipem +3,4%, following the contracts signed in Saudi Arabia for 3,5 billion dollars. For Kepler Cheuvreux the stock is buy. Tenaris +1,52% and Eni +1,07% also shine.
Among the financials, Finecobank rebounds +2,03%, Unipol +2,05%, Ubi +1,49%, Intesa +1,22%, doing well. Among the banks Mps restarts +5,44%, after yesterday's break. Nexi, +1,84%, reaches the maximum for the year at 9,532 euros per share. Profit taking penalizes Azimut -0,68%. Fractional losses for Terna -0,38%; Italgas -0,36%; Cnh -0,35%.
