Prudence on European stock exchanges, tension on raw materials. This is how today's trend, Tuesday 4 May, of the financial markets can be summed up.
Between the Fed and sanctions on Russia
On stock lists, attention is focused on the Federal Reserve which tonight will announce the second hike in US interest rates after that of March. This time, according to analysts, the US central bank should decide an increase of 50 basis points, the most "massive" increase for over 20 years.
Meanwhile, the President of the EU Commission, Ursula von der Leyen, has proposed new sanctions against Russia. However, the Member States would have asked for more time to examine the document. The final decision should therefore be postponed to 9 May. Brussels' proposal envisages a gradual ban on the importation of all Russian oil by sea and by pipeline, both crude and refined. “We will make sure – said von der Leyen, of phase out Russian oil in an orderly manner, so that we and our partners can secure alternative supply routes and minimize the impact on global markets. This is why we will be phasing out Russian crude within six months and refined products by the end of the year." The Commission also proposed the exclusion of Sberbank and two other Russian banks (Agricultural Bank and Moscow Credit Bank) from the Swift system. Finally, the president announced that the EU is working on an important aid plan for Ukraine.
Oil and gas soar
The announcements on sanctions from Brussels have caused a surge the price of oil, with Brent advancing by 3,2% to 108,36 dollars a barrel. Also up sharply are i gas prices which in Amsterdam rise by 4,9% to 104,3 euros per MWh.
The spread is up
On the other hand, the expectation for the Fed affects the spread. In the middle of the day, the differential between ten-year BTPs and the Bund stands at 191 basis points, up 1,2% from yesterday's close. Salt also the yield of the ten-year BTP benchmark which stands at 2,95%, up by 2,72%, reaching the highest since the end of 2018.
European stock exchanges are cautious, the ruble flies
The European stock exchanges, for the moment, have taken the path of caution. Frankfurt and Madrid lost 0,2% and 0,3% respectively, while Paris dropped by 0,5%. London was also down by half a percentage point, while Piazza Affari, at 12.50, marks -0,3% to 24.167 points.
Fluctuating trend for the Moscow Stock Exchange, where the Moex index denominated in rubles drops 2,3%, while the Rts index travels up by 1%. Sberbank drops by 2,6% after the announcement of sanctions. Also in the red were Gazprom (-2,5%) and Lukoil (-3%).
Sul currency market, the ruble it reached a 2-year high against the euro, at 71,91, and the dollar, at 68,37.
Piazza Affari: the best and the worst
In Milan it continues quarterly seasonthe. Attention is now concentrated on Enel (-0,7%), Ferrari (-1,4%), Moncler (-1,38%), Telecom Italia (+0,3%) and Unicredit (in parity). Waiting for the accounts of the parent company, it has arrived the quarterly of Tim Brasil which in the first three months of 2022 achieved profits up by 46,4% to 405 million reais (about 77,5 million euros) and revenues up by 8,9% to 4,72 billion reais.
Back to the Stock Exchange, instead A2a (+2,8%) is driving the increases, closely followed by Saipem (+1,99%), Leonardo (+1,15%) and Pirelli (+0,74%). Between the worst titles on the other hand, Campari (-3,4%), Amplifon (-2,6%), Diasorin (-2,12%) and Cnh (-1,8%) are included.
