Finland accelerates on NATO membership process and infuriates Moscow; the Russians begin acClose the gas taps to Europe; US inflation slows less than expected and fears of a recession are rising, following a Fed that will probably be more aggressive; Covid lands in North Korea, while Nomura warns that the lockdowns in China affect 41 cities that represent 30% of the celestial empire's GDP: here, having made this premise, it is no wonder that the European price lists, after the clearing yesterday, close a negative session today. On the other hand, on world markets, this first part of the year is the worst ever seen.
To stay with the data of the day the final in Europe is in any case on the upswing compared to the lows reached during the day, thanks to a momentary change of mood on Wall Street and the Nasdaq, which however remain very volatile. Among big stocks it remains weak Apple (-0,28%) which yesterday lost the scepter of the most valuable company in the world, overtaken by the Saudi oil giant Saudi Aramco (-1,76%).
Europe in red, but without drama
The European markets close with a loss, but therefore limit the damage in the final stages. Business Square, which had managed to lose 2%, retreated by 0,67% to 23.566 basis points thanks to the change of pace of the banks which, after the rally on the eve, are confirmed on the rise. The balance of Madrid -1,32%, Paris -1,01%, Amsterdam -1,11% is heavier. Frankfurt -0,69% is in line with Milan, while the black spot goes to London, -1,63%, with the British GDP which, surprisingly, fell by 0,1% in March, disappointing expectations. The decline in auto sales, following problems in the supply chain, weighed heavily.
Among the European titles in evidence Commerzbank recovers and closes at +0,26%, on the day in which it confirmed the net profit target for the entire year of over 1 billion euro.
Siemens, on the other hand, dropped 2,48% following the decision to leave the Russian market, which will weigh on the second quarter by 600 million euros.
Dollar at a twenty-year high, the euro falls
The dollar index is at a twenty-year high, due to its role as a safe haven and in view of progressive rate hikes by the Fed. The central bank could be pushed in this direction by inflation that remains at a 40-year high. After yesterday's consumer prices, US producer prices have arrived today, also slightly higher than expected. Compared to a year earlier, producer prices increased by 11% (after +11,5% in March), against expectations for +10,7%. The world of work also confirms its solidity: the number of people who applied for unemployment benefits for the first time, in the week ending May 7, increased from 1.000 to 203.000, with expectations for a figure of 194.000.
The euro loses more than 1% against the dollar and treats in area 1,039. The single currency's plunge is even more substantial against the yen and equal to about 2 percentage points. The pound appears even weaker, after the disappointment on economic growth in March.
Cryptocurrencies go down. Bitcoin is down about 7% to $29.369.
The gas war is in full swing
The gas war between Russia and the EU had important repercussions on futures during the day, which gained up to 20%. In the early hours of the afternoon on the TTf, quotations rose by +16,6% at 109 euro/MWh.
Gazprom has communicated that it will no longer be able to export gas through Poland via the Yamal-Europe pipeline, after Moscow yesterday imposed sanctions against 30 Western companies including the Yamal-Europe company, which manages the Polish section of the pipeline. Berlin, the company's largest shareholder, accused Russia of using "energy as a weapon".
As for the Italian market, Snam (-1,95%), in a note, he states that "at the moment the flows from Russia continue without interruption, but the uncertainty and fear of possible implications on the supply front have triggered a significant increase in prices".
Oil is also in progress: Brent appreciates by 0,85% to 108,43 dollars a barrel.
At Piazza Affari focus on quarterly reports
The good quarterly accounts of some favor Piazza Affari, which largely reduces losses. Among these posts, which celebrates the positive results with an increase of 3,14% and Stm, +3,99%. A positive push was also given the banks, still in progress starting from Unicredit +2,92%, after yesterday's rally. Highlights are also Bper +2,44%; Understanding +1,14%; Bank Bpm +0,75%.
Pirelli +1,55% and Telecom +0,96% were also among the ten biggest increases of the day.
Hera instead loses 7,25%, after the quarterly numbers shown yesterday, with revenues growing by 133,8% (mainly due to the increase in commodity prices) to 5,312 billion, a gross operating margin of 374 million (+3,3%) and an almost stable net profit at 137,8, 1,8 million (-3,455%). Net financial debt is 2,8 billion, for a ratio of XNUMX times the EBITDA.
The red is deep for Amplifon -5,83% in a sector, that of health, which is on sale overall. Recordati decreased -5,02% and Diasorin -2,27%.
In the luxury sector, Tod's loses, -2,68%, despite the fact that the first quarter revenues announced yesterday were higher than expectations, with the consensus confirmed for the year despite the slowdown in the Chinese market. However, some brokers have cut their target prices on the shares.
The spread goes down
The return on government bonds continues and yields fall. The Italian secondary therefore closes in green, with one declining spreads to 184 basis points (-3,12%). The rate of the 10-year BTP drops to +2,71% and that of the Bund of the same duration returns below 1% to +0,87%.
Prices are going up and yields are going down also in the USA, especially on long-term bonds. The 2,84-year bond currently shows a declining rate of +XNUMX%.
