Le European stock exchanges contrasting, but calm after the German vote, with investors examining the possible scenarios that are opening up in Germany. While on the one hand the exclusion of the Liberals and BSW from Parliament allows the formation of a two-party government between the Conservatives and the Social Democrats, on the other hand the main parties (CDU-CSU, SPD and Greens) do not have – by a few seats – the two-thirds majority needed to review the constitutional limits on public spending, leaving the far left of Linke and the AfD with a blocking minority. The German elections saw the victory of Friedrich Merz's conservatives, which established itself as the leading party with 28,6%, while the far right of AfD, led by Alice Weidel, obtains 20,8%, becoming the second political force.
In this context, continental stock markets are experiencing a continuous up and down. Frankfurt started the session with a 1% increase, before falling back and rising again by 0,85%. Positive start also for Milan, which then slipped into negative territory and is now back above parity together with Madrid. Paris and Amsterdam remain with a minus sign, the latter despite the exploit (+53%) of Just Eat after the 4,1 billion takeover bid by Prosus.
Today also marks the Third anniversary of the Russian invasion of Ukraine. The Ukrainian President, Volodymyr Zelensky, who said he was willing to to give up his role if this could lead to peace, perhaps in exchange for Ukraine's entry into NATO, received in Kiev the president of the EU Commission, Ursula von der Leyen which has promised to send a new tranche of aid of 3,5 billion. In the meantime, the EU foreign ministers have approved a sixteenth package of sanctions against Russia. Also to be monitored in the coming weeks is the extraordinary EU summit on Ukraine, scheduled for March 6. Defense stocks are rising as well Leonardo.
On the foreign exchange market, theeuro is at $1,0469, while the Oil prices shows slight growth. WTI gains 0,17%, falling to $70,52 a barrel, while Brent rises 0,23%, settling at $74,6 a barrel. gas price is falling on the Amsterdam markets.
READ MORE: Stocks and Euro Positive After Merz's Victory in Germany
In the bond market, European government bond yields are slightly up. The yield on Waist German rises to 2,487%, while that of BTP Italian stands at 3,567%, with the spread stable at 108 basis points.
At Piazza Affari, all attention is on Saipem, after theAnnouncement of merger with Norwegian Subsea 7. With this operation, the Saipem7, a European giant with revenues of 20 billion and an aggregate order book of 43 billion. The new group, which will have its registered office in Milan and will be listed on both the Piazza Affari and the Oslo Stock Exchange, will employ 45.000 people, including 9.000 engineers.
On the Milan stock exchange, eyes are also on Tenaris, Poste Italiane, Tim, Inwit e Stellantis. In particular, Barclays raised the target price of Tenaris from 48 to 50 dollars (overweight rating) and that of Poste Italiane from 12,7 to 14 euros (equal weight rating). Poste is ready to consolidate the telecommunications market in Italy, after becoming the second largest shareholder of Tim thanks to the exchange of its share in nexi with the one held by CDP in the telecommunications company.
In Asia, most stock markets are down, except for Tokyo, which is closed for a holiday marking Emperor Naruhito's birthday. This move follows the sharp drop in Wall Street on Friday, driven by macroeconomic data that indicated a slowdown in the global economy and persistent inflation, especially in the United States. In Singapore, January core inflation rose 0,8% on an annual basis, but this is the lowest reading since June 2021, below the 1,5% forecast by analysts. On the stock front, Shenzhen loses 0,18%, Shanghai drops by 0,17%, Hong Kong is down 0,45%, while Alone records a loss of 0,35%. Mumbai, marks a more marked decline, equal to -1,04%, while Sydney is slightly down with -0,13%.
As for currencies, theeuro earns a modest 0,61% against the JPY and 0,33% against the Chinese Yuan, while the profit towards the Hong Kong dollar it is more contained, with a +0,5%.
Sui government bonds, the performance of the Japanese Decade stands at 1,43%, while that of the Chinese Decade is equal to 1,79%.
A Wall Street there is great anticipation for the accounts of Nvidia, which will be published on Wednesday.
