At a brisk pace in the first part of the session, le European stock exchanges have slowed down due to the volatility of Wall Street, because the tensions between the US and China do not subside. The recent positive indications from the quarterly reports are holding the scene, while fears of a global economic recession are not eased, following the announcement of the Bank of England which has announced a further rise in interest rates in the United Kingdom.
Investors and analysts are also eyeing China at this very complex and alarming time on the front Taiwan: Beijing in the early hours of the morning Italians began military exercises considered historic, the day after a visit by the Speaker of the United States House of Representatives Nancy Pelosi.
Of course, fears about inflation, recession and the energy crisis remain exactly where they were and it is feared that especially the race in prices could erode the margins of companies in the second half of the year.
The yield on Italian 3-year BTPs has also instilled some optimism, which has returned below the 21% threshold, after the peak marked on XNUMX July with the fall of the Draghi government. The spread, stands at +209 basis points (-1,68%), while the yield on the 10-year BTP stands at 2,84%, the Bund at +0,74%.
It also regains strength the euro which rises to touch 1,02 dollars at 1,0198 and trades at 1,0193 (from 1,013 yesterday at the close).
Wall Street discounts Pelosi's visit to Taiwan
Contrasted but rather flat opening for the Wall Street indices, on a day in which investors remain on the fences in view of tomorrow's labor market report and which could provide important indications to the Fed, in view of future monetary policy choices. The Dow Jones the session continues at the levels seen on the eve and stops at 32.736 points (-0,23%); L'S & P 500 is slightly below parity parity (-0,11%) and the Nasdaq yields 0,3%.
The undisputed star of the day is fixed income: the curve between two-year and 0,4-year Treasuries has inverted (about -2000 basis points), the biggest inversion since the 2,67s. The 3-year yield has reached 12%, the of the two-year period above XNUMX%. It generally indicates the risk of a recession in the next XNUMX months.
Piazza Affari still closes in positive territory
At the halfway point of the session Milano it rises by 0,31% anchored at 22 thousand points. Frankfurt by 0,55%, with Zalando “star” of the session after closing the second quarter down, but in line with expectations. Well Paris (+0,6%), driven by the results of Crédit Agricole, more cautious instead Madrid (+0,16%) while London with the BoE which, as expected, increased rates by 50 basis points, limiting the increase to +0,08%.
Boe raises rates again and the ECB prepares for the worst
Investors also closely monitor the decisions of the Bank of England which raised interest rates again by half a point (from 1,25% to 1,75%), the largest increase since 1995, to combat inflation which reached 9,4% in June. Meanwhile the ECB, in his economic bulletin, spoke of a "slowing" euro area economy and shadows on the outlook for the second half, if not beyond, due to the war in Ukraine, the spike in inflation and heightened uncertainty . In this context, the Eurotower will have to decide what to do with monetary policy: the decisions will be taken from time to time on the basis of the evolution of the data.
Diasorin stands out in the spotlight in Milan quarterly
In Piazza Affari the banks march in random order. Bpm bank (-3,15%), after i accounts that have not reserved surprises, Understanding (-0,35%), Finecobank (-0,8%) And Bper (-0,35%), the latter waiting for the accounts, while they are on the rise Unicredit (+ 0,69%) and Mediolanum (+2,83%), rewarded by the half-year results announced yesterday.
Utilities such as Snam + 0,91% A2a + 1,24% Terna -0,48% Ivy -0,14%.
Corre Diasorin (+ 4,56%) and Prysmian (+3,96%). Brake Tim (-3,28%), after the half-year accounts and the revision of the guidance which does not warm up the market. It continues positive Tod’s (+0,6%) to 40,46 euros, above the threshold of the Della Valle family takeover bid to acquire 25,55%.
Sharp turn for Tenaris (-3,85%) after leading for half the day thanks to solid quarterly.
Even the automotive sector is bad due to the threat to the balance of the semiconductor world. Stellantis loses 0,69% e Ferrari –0,85%. Also Pirelli (-0,56%) below parity pending the half-yearly accounts. Worse than Iveco (-2,17%).
Luxury is strong despite US-China tensions and the global climate. Among the blue chips Moncler earns 2,62%.
The strongest sales, on the other hand, show up Saipem, which continues trading at -5,47%.
The negative performance of Leonardo, which drops by 2,24%.
Oil falls, gas prices rise
Down session for the energy sector with the Petroleum which slows down. Brent at 97,67 dollars (2,11%) and Wti at 88,97 dollars (-1,86%). The markets have "digested" the decision to increase oil production by 100 barrels a day from September by OPEC+, the cartel of producing countries to which Russia is also a member.
While, in Amsterdam the prices of gas they return to 200 euros per megawatt hour, after 191 at mid-day.
