Le European stock exchanges they maintain a trend thwarted halfway through the session, "orphans" of the guidance of Wall Street closed for the Juneteenth holiday. This comes after the European Commission launched, as widely expected, a excessive deficit procedure against Italy and six other European Union countries, including France.
A Business Square, the trend is colorless with a minimum variation of 0,06%. Among the European indices, Paris recorded a decline of 0,6%, Frankfurt a decrease of 0,18% e Amsterdam a slight decrease of 0,16%. Madrid is flat and London it remained stable with a modest increase of 0,10%.
UK inflation returns to BoE target
Investors' eyes are now fixed on monetary policy decisions: Thursday, the Bank of England will reveal its sui strategy interest rates. Despite the return ofinflation in the UK at the 2% target in May, after almost three years, price tensions remain robust, suggesting the Bank of England may take a cautious approach ahead of any rate cuts. Meanwhile, British company Spectris saw its share price fall 8,4%, announcing that it expects adjusted annual operating profit to be in line with or slightly below market forecasts.
Excessive deficit, EU opens infringement procedure for Italy and six other countries
The European Commission has launched an infringement procedure against theItaly for its public deficit of 7,4% in 2023, the highest in the EU and well above the 3% limit set by the Union. This situation also concerns Belgium, France, Hungary, Malta, Poland e Slovakia, while Spain, the Czech Republic, Estonia, Slovenia and Finland were spared. This action follows the rules of Stability and Growth Pact, now that the pandemic emergency measures are no longer in force, which set limits for the deficit and public debt at 3% and 60% of GDP respectively. Furthermore, the new European governance imposes an annual deficit reduction of 0,5% of GDP. For Italy, this means a necessary adjustment of around 10 billion euros.
For the formal adoption of the package it will be necessary to wait until November, when the new European Commission is expected to take office and specific recommendations will be released for each country, establishing the amount of corrections necessary for the public deficit in accordance with the new rules on net spending .
Piazza Affari is weak, STM and luxury weigh
It oscillates around parity there Milan Stock Exchange. Among the best titles, they stand out Iveco (+ 1,14%), Eni (+0,94%) and the banks: on the rise Ps (+ 1,1%), Intesa Sanpaolo (+ 1,04%) and Unicredit (+ 0,46%).
Despite the launch of a "Sustainability-Linked Bond" by Enel Finance International, a financial company controlled by the group Enel, the energy giant recorded a decline of 0,22%. The issue, intended for institutional investors in the US and international markets, raised 2 billion dollars (around 1,9 billion euros), guaranteed directly by Enel, with strong demand that exceeded supply, generating total orders for approximately 5,6 billion dollars.
On the other hand, stronger sales are striking stmicroelectronics (-2,71%), Amplifon (-1,46%) And Italgas (-1,2%). Luxury stocks are particularly suffering after the announcement of Golden goose di postpone the IPO scheduled for the 21 June, attributed to a “significant deterioration in market conditions” linked to the recent European Parliament elections and the upcoming general elections in France.
Outside the main price list, Caltagirone marks an increase of 1,05% while Fincantieri continues to lose ground with -1,94%.
Other markets
The differential between Italian ten-year BTPs and German Bunds remains stable above 150 points, precisely at 151 points, while the yield on the Italian BTP increases to 3,91% and that of the German Bund to 2,4%.
In the currency market, theeuro rises again against the dollar at 1,074, while the pound advances to 1,27 dollars after the British inflation data. The price of Petroleum recorded a slight decline, with Brent at 85,23 dollars (-0,19%) and WTI at 80,59 dollars (-0,15%). The European natural gas in Amsterdam it is stable at 34,7 euros per megawatt hour.
