The week of European stock markets closed down, amidst geopolitical tensions in Ukraine, mixed macro data and some unconvincing quarterly reports. In Italy the Quirinale also remains unknown.
The ending is in any case better than the lows of the day, thanks to the performance of Wall Street, positive after an uncertain start.
Business Square loses 1,18%, to stop at 26.565 basis points; Frankfurt -1,31%; Paris -0,82%; Amsterdam -1,26%; Madrid -1,07%; London -1,09%. Red is brightest for auto stocks, looking for the plunge of Volvo (-3,54%), after below-expected core earnings and a lower-than-expected dividend. In luxury it shines instead lvmh (+3,7%), after showing aacceleration of sales in the fourth quarter.
Overseas Wall Street seems to have found the right intonation, after an initial shaky path on the thin line traced by the Fed (ready to move more decisively on the path of monetary tightening should inflation make it necessary). In the US, data relating to labor costs are confirmed, increased by 4% in the last 12 months and the PCE index, +5,8% compared to 12 months ago, the highest for almost forty years. On the other hand, consumer spending fell in December by more than the consensus. Among the most prominent stocks are on the rise Apple and Visa, after quarterly.
The dollar is declining slightly; yields on T-bonds decline moderately; oil travels sustained.
Milan in red with banks, oil and Stellantis
In Piazza Affari, after yesterday's gains, oil stocks and banks are retreating. Sales are also back on some titles from the Agnelli galaxy.
They then stop at the bottom of the list: Saipem, -5,05%; Bper -3,81%; Cnh -3,3%; A2a -2,93%; stellantis -2,7%; Bpm bank -2,56%. Limit the damage Unicredit, -0,19%, which beat guidance with the 2021 results and confirmed the commitment to a "significant" shareholder remuneration with the proposed distribution of 3,75 billion lire in dividends and buybacks. The Financial Times also writes that the institution led by Orcel has backtracked on the offer for the Russian bank Otkritie due to tensions in Ukraine, after talks between Vladimir Putin and the managers of some large Italian companies.
It is against the trend in the sector Mediobanca +0,35%, among the few blue chips up along with Inwit +1,66%; Ivy +1,14%; Leonardo +0,97%; General Bank +0,29%. Colorless Ferrari, + 0,05%.
Out of the main basket he stumbles Ferragamo, -4,27%, after reporting yesterday after the market was closed, results on 2021 revenues in line with the consensus.
Brake the German locomotive
The slowdown of the main economy of the euro area contributed today to freezing the European lists. In the fourth quarter, German GDP contracted more than expected, -0,7% compared to the previous quarter, due to the restrictions from Covid-19 which slowed economic activity.
In the same period, however, France rose by 0,7%, achieving record growth in 2021 of +7%, the highest for 50 years.
Spain also shines +2% in the last part of the year compared to the previous three months, beyond analysts' forecasts.
In Italy, both the business confidence index fell in January, which fell to the lowest value in the last nine months, and that of consumer confidence, again due to problems related to Covid and energy prices.
Industry production prices also recorded the highest growth since 2021 in 2000. According to data released this morning by Istat, average growth last year was 10,7%, from -3,4% in 2020.
The problem of energy prices remains on the table, especially in this context of high tension with Russia. According to the FT, the EU intends to ask Azerbaijan for emergency gas supplies to be used in the event that a Russian invasion of Ukraine jeopardizes its supplies.
Oil at a seven-year high
Speaking of energy costs, oil is on the run, trading in a seven-year high, after hitting a top of $91,04 yesterday. The Brent it currently marks an increase of 1,45% and a price of 90,64 dollars a barrel; WTI +1,35%, 87,78 dollars a barrel.
At the moment, black gold seems to be heading to close the sixth week higher.
Crude oil prices are leveraging fears of an impact from the crisis in Eastern Europe, even as Russian Foreign Minister Sergei Lavrov said Moscow does not want a war with Ukraine.
The upside is limited slightly by the recovery of the US dollar, which is about to end its best week in seven months on expectations of higher interest rates.
The greenback index is currently down slightly. The euro took advantage of this, climbing back to around 1,16.
Auction yields are up
In the euro area, yields are rising government bonds. In particular, the 0,08-year Bund closed at -1,28%. On the other hand, the Italian 137-year bond remains more or less stable, at +0,77%, for a spread of XNUMX basis points, slightly down on yesterday's close (-XNUMX%).
On the other hand, the rates of Italian bonds in auctions for medium-long term bonds increased sharply.
In detail, the Treasury issued the eleventh tranche of the 5-year BTP expiring on 01/08/2026 for 3 billion against a request of 4,603 billion (1,53 the coverage ratio). The yield was up 31 cents to 0,50%.
The fifth tranche of the 10-year BTP maturing on 01/06/2032 was also placed: against requests for 4,842 billion, the amount issued was 3,5 billion (1,38 the coverage ratio) while the yield, growing by 36 cents on last month's auction, it settled at 1,39%. Finally, the eleventh tranche of the CcTeu expiring on 15/04/2029, assigned for 1,5 billion against a total demand of 2,443 billion (1,63 the coverage ratio), achieved a gross yield of 0,08 %, (+6 cents on the previous auction). The auction regulation falls on February 1st.
