Unicredit pulls the sprint and Business Square wins the first stage of the week with the other European lists, marking an increase of 0,99% and aiming for 26 points (25.824). Despite the uncertainties of Wall Street, which is down slightly awaiting the data on US inflation which will be released on Thursday and despite the scattered performance of the other continental markets, the main Milanese stock index closes another session with a sharp rise, supported from an anti-Covid vaccination campaign that apparently works and could lead the country to the famous herd immunity in September.
On the Ftse MIb, Unicredit it appreciates by 3,47%, thanks to the "buy" promotion by Jefferies, with an increase in the target price. The speculative appeal in the sector keeps morale up too Bpm bank +1,5% and Bper + 1,34%.
Among the best blue chips of the day there are also Post + 2,2% Pirelli + 1,96% Azimuth +1,96%, while the decreases are limited to three stocks: stm -1,37%; Saipem -1,06%; Mediobanca -0,05%.
Out of the main basket remains on the shields Saras (+12,63%), which recovered around 40% in one month, returning to the levels of June 2020. Today's leap was triggered by the Bofa Global Research upgrade which brought the recommendation to 'buy' from ' neutral' and with a target price of 1 euro from the previous 0,70 euro.
In the rest of Europe it bounces Madrid +0,84%, they appreciate London +0,13% and Paris +0,43%, while losing 0,11% Frankfurt after Chancellor Angela Merkel's Conservatives won a resounding victory in state elections in eastern Germany on Sunday.
Irish and Dutch bond markets are virtually flat after the G7 group of nations' historic agreement for a global minimum corporate tax rate of at least 15%.
The climate on the stock exchanges therefore appears positive, with some perturbations.
According to the latest survey conducted by the German Sentix Institute, which publishes a monthly summary indicator on the confidence of stock market operators in the Eurozone, the index rose to 28,1 points in June from 21 points in May. The figure is better than analysts' expectations which were for a more contained rise in the indicator, ie up to 26 points.
However, fears about inflation and the choices of central banks also continue to creep. In particular, today the markets are weighing the words of US Treasury secretary Janet Yellen, who in an interview with Bloomberg explained that a possible rate increase (bogeyman of the markets) shouldn't necessarily translate into damage for the US economy. “If we ended up with a slightly higher interest rate it would actually be good for society and for the Fed,” said the former Fed chairman. “We've been fighting too low inflation and too low rates now for a decade ” “and if that helps a little, then it's not a bad thing, but a good thing. The Biden administration's 4.000 trillion dollar spending plan will be positive, even if it were to lead to an increase in inflation and, consequently, in interest rates, which would represent a "plus".
Against this backdrop, government bond yields rose slightly, in the US, but also in the euro area, in view of Thursday's ECB meeting.
The rate of the 10-year BTP marks +0,86%; that of the Bund at -0,20%. The spread between the two ten-year terms it grew to 105 basis points, +2,6%. As Reuters reports, the central bank's dovish rhetoric suggests it is in no hurry to slow the pace of its €1,85 trillion ($2,24 trillion) Pandemic Emergency Program (PEPP) purchases. However, with the economy on firmer footing, inflation rising and other central banks taking interim steps to slow the stimulus, the pressure to ease measures would be mounting.
Over the last two months, the ECB has purchased Italian government bonds as part of the PEPP for 26,12 billion, up on the 20,50 billion purchased in the previous two months. The total of purchases of Italian securities in the Pepp area therefore rises to 182,94 billion. As regards the other main countries, between April and May the ECB bought German government bonds for 40,61 billion (to 261,13), French for 31,44 billion (to 189,67) and Spanish for 18,35 billion, to 122,58. Finally, as regards purchases in the context of Qe, in May the ECB purchased Italian bonds for 0,585 billion, bringing the total purchases of BTPs since the beginning of the program to 425,34 billion.
It should be remembered that Fitch confirmed Italy's sovereign debt rating as “BBB-” on Friday evening, with the markets closed, with a stable outlook.
Meanwhile, the Ministry of Economy has entrusted a group of banks made up of Bnp Paribas, Credit Agricole, Goldman Sachs, Hsbc and Intesa Sanpaolo the mandate for the syndicated placement of a new 10-year benchmark BTP maturing on 01/12/2031 . The transaction, according to a statement from the Treasury, will be carried out "in the near future, in relation to market conditions".
On the currency market the euro it rises against the dollar, but without returning to the 1,22 level.
Among raw materials, the Petroleum: Brent -0,65%, $71,42 a barrel.
