Inflation rises in France and Spain ei European lists skidded, after the gains of the eve, closing a contrasted session, while Wall Street moves uncertainly after a false start. The US stock market is about to end February in the red.
Square Business it remains healthy, +0,12%, at 27.478 points, thanks to purchases on banks. Saipem also shines (+2,78%) after i accounts. Outside the main list, however, it collapses Mount Paschi (-8,07%) following the sale of 8% of the share capital by Axa.
Banks are also the strength of Madrid, +0,87%, driven by the leap in Santander (+4,95%) following the increase in the payout envisaged by the new three-year plan and the launch of a treasury share buyback plan.
Downturns strike first London. -0,82% and then Amsterdam -0,54% Paris -0,38% and Frankfurt -0,13%.
THEeuro-dollar is little moved, around 1,06 against, while the Petroleum, with Brent and Wti appreciating by around 2%. Gas is down, at 46,48 euros per MWh.
Tensions on government bonds
The trend ofinflation weighs on government bonds, whose yields are on the rise.
Lo spread between 178-year BTPs and Bunds with the same duration, it remains at 4,37 basis points with rates respectively indicated at +2,59% and +XNUMX%, with the German bond reaching its highest levels for over a decade in the session.
The data on French and Spanish inflation, which rose to 7,2% in February in Paris from 7% in January and in Madrid to 6,1% from 5,9%, is making the bloc's bond holders nervous.
Secondo MPS Capital today the market is pricing in almost 150 basis points of ECB rate hikes by the end of the year, "which would mean a 4% target rate".
Rates on British bonds also rose, while the run in food prices in Great Britain reached a record 17,1% in the four weeks to February 19th.
Prices are falling and returns also growing in the US, where Bofa experts estimate the Federal Reserve could raise interest rates to nearly 6%, as strong US consumer demand and a tight job market force the central bank to fight inflation longer. A percentage higher than the peak of 5,4% by September estimated so far by the markets. Furthermore, according to BofA, the stars and stripes economy will enter a recession by the third quarter of 2023.
Meanwhile, today it emerged that the US trade deficit, in the preliminary reading, increased in January by 2% compared to the previous month (91,5 billion against expectations at 90 billion).
Piazza Affari appreciates with financial stocks
The top 10 of the main list of Business Square today it is made up largely of financial stocks, even if the pink jersey goes to Saipem, awarded after the accounts.
Most of the purchases were intercepted Post + 2,04% Generali + 2,02% Finecobank + 1,77% Unipol + 1,3%.
Among the banks, which see higher gains in the rise in interest rates, it is still in the light Unicredit +1,42%. They follow her Bper +1,28% and Intesa Sanpaolo, +1,13% which completed an issue yesterday Dual Green Bonds tranches for a combined amount of 2,25 billion euro, collecting orders for around 5,3 billion. The two titles have a duration of 5 and 10 years.
In the course of trading, the gain was reduced by nexi, +0,55% which started off strongly after the announcement of the agreement for the acquisition of 80% of Banco Sabadell's merchant acquiring business, for 280 million euros, and a long-term partnership in the Spanish market.
It is mainly utilities that suffer, whose dividends suffer from competition from government bond yields: Snam -2,33% Italgas -1,64% Terna -1,49% Ivy -1,33%.
In the other sectors the reductions are sustained for Tenaris -2,4% and Buzzi -1,67%.
