The European Stock Exchanges lengthen the pace towed by cars, banks and construction. The war, in truth, does not stop. And the rain of bombs on Kyiv is accompanied by "collateral damage" (the failure to sow cereals, for example) which accelerates the increase in inflation on a global scale. But the markets, compressed by months of declines, are looking at the glass half full: talks continue online between Ukraine and Moscow while China takes the field in Rome: today a top executive from Beijing met with the advisers for the US national security, Jack Sullivan, and Chinese Communist Party diplomacy chief Yang Jiechi.
In this context, the squares of the Old Continent take off: in Piazza Affari the Ftse Mib now gains 1,55%% to 23.399 points, after having reached a ceiling of +2,2% while in the rest of the Old Continent Frankfurt climbed by 3,12% and Paris by 2,08%. London +0,47% and Amsterdam +0,52% remain further behind.
European stock markets recovering, four trends to consider
Two factors contribute to instill optimism:
- Cala the Petroleum, which loses between three and four percentage points in the middle of the first session of the week. Brent dropped 3,44% to 108,79 dollars a barrel, while WTI April slipped by 4,19% to 104,73 dollars.
- Prices also continue to fall gas on the European market which return to the values at the end of February, marking a drop of 11,14% to 116,60 euros per megawatt hour.
- Il Shenzhen lockdown, due to Covid-19, suggests a decline in China's consumption of oil and other raw materials.
- Salt on cost of money (the T bond jumps to 2,08%) but the spread between Btp and Bund is reduced to 159 points. We are once again talking about the issue of Eurobonds for energy and defence.
European stock exchanges recovering, Tim shines in Milan
The real novelty of Piazza Affari concerns Telecom Italy, which jumped above 0,30 euro with an increase of almost 6%. This is how the market reacted to board decision to give a mandate to the top management to formally discuss the possible offer for the telecommunications group with Kkr. It will not be an easy negotiation, given that the group's advisors speak of a potential price of one euro (when the plan is completed) against the offer of 0,505 before the new devaluations. But it is already a lot to have identified a common ground.
Among the liveliest titles stands out Bper +5,04% ahead of Bank Intesa +4,05%. Also recovering Unicredit +3,3% and Bpm bank +2,78%. Banks thus react to the declines fueled by the specter of the consequences of a default by Russia on creditor accounts.
It picks up speed recovery of the auto sector, leader of the cyclicals. Leading the rally is Volkswagen +5,8% in the week of the accounts. In Piazza Affari Stellantis is in the lead +5% ahead of Pirelli +4%.
Defense and energy slow, utility weak
On the other hand, the most popular titles in the Bear moment, both Defense and Energy, are slowing down:
Leonard +0,31%. The group's goal in Europe, said Alessandro Profumo, is to become an aggregation pole for the defense electronics market, leveraging synergies in the fields of sensors, cybersecurity, data management and robotics. A fundamental step was the acquisition of a share in the German Hensoldt as well as the participation in the Tempest programme.
Eni brakes -0,11% in the wake of the drop in crude oil. The group has signed an agreement to set up Azule Energy, a new 200.000/2 joint venture that will combine its activities in Angola with those of BP. Azule Energy will be a new, independently managed international energy company with more than XNUMX barrels of net oil and gas equivalent and XNUMX billion barrels of net assets.
Enel +1,15% is the only utility on positive ground. The worst stocks of the day include Hera -1,425, Tenaris -1,24, Snam -1,93 and A2A -0,85%.
