Le European stock exchanges, mid-session, move higher but remain very cautious. Yesterday the data on US inflation in decline did not particularly warm the markets, but the ECB survey in March according to which expectations of inflation for the next 12 months they are uphill, yes. Today's focus is on Bank of England which aligned itself with the Fed and the ECB and raised the Bank rate by 0,25 points as expected to 4,5%. Other indications on prices will come from the USA, with producer prices. But in the rest of Europe they are still the masters quarterly.
The best bags are those of Paris (+ 0,54%) and Amsterdam (+0,84%), thanks to Ing Groep +2,30% after better-than-expected accounts and the announcement of a buyback program of up to 1,5 billion euro. It follows Madrid up by 0,35%. In a nervous climate, up 0,2% Frankfurt, weighed down by the thud of Bayer (-6,68%) after the group published the accounts for the first three months and cooled expectations for 2023. Behind the Ftse Mib +0,08% Milano, weighed down by the negative performances of Iveco and Telecom Italia after the publication of the accounts for the first quarter of 2023. Negative London (-0,07%).
Inflation expectations pick up
They "significantly" increase the inflation expectations in the eurozone in March. This is what emerges from the ECB survey according to which in the next 12 months expectations are for inflation to rise to 5% from the 4,6% of the February survey. This is the highest level since the survey began in April 2020.
Furthermore, expectations are also expected to rise for the next three years: rising to 2,9% from 2,4% in the previous survey and far from the ECB's target of 2%. When asked if rates will rise again in September, Joachim Nagel, president of the Bundsbank, replied (in an interview with Bloomberg TV) that “nothing can be ruled out. Inflation is still very sticky, the increase in prices is a very stubborn phenomenon”, suggesting that new increases are to be taken into account.
This is a prospect that could push the ECB to continue with the monetary tightening, according to analysts. Just a week ago the ECB slowed the pace of its rate hikes to 25 basis points, with several Governing Council members saying the institution's hard line will end soon (by the summer). Others, however, are starting to suggest that the tightening may need to continue for longer with further hikes in the coming months.
Little move Piazza Affari, held back by Iveco, Pirelli and Tim
Spotlights on the quarterly reports again today: a Business Square well the banks with the exception of Mediobanca (-0,47%) waiting for the bills. Top of the list Banca Monte Paschi Siena +3,24%, they are also good nexi (+1,99%) after the quarter above expectations, Interpump (+ 2,8%), Ivy (+1,74%)e Moncler (+ 1,62%).
In red Iveco Group -3,53% , started well but slipped to the bottom of the list, e Pirelli (-1,43%). There quarterly di Tim does not support the stock which loses 0,90% after +4% on the eve.
Out of the main list, sales rained on From Nora, after the quarter which saw profits (-5,8%) and margins (-15,5%) down despite the increase in revenues (+8,4%) and the confirmation of the 2023 guidance. The net financial position shows net availability of 10,1 million compared to 51,3 million as at 31 December 2022. The sharp decline, explains the hydrogen company owned by Snam (+0,39% thanks to to the accounts for the first quarter of 2023) derives from investments for 21,5 million and from an increase in net working capital due to the absorption of advances received from customers following the progress of projects in the portfolio, and to the increase in receivables from customers due to the growth in invoiced revenues in the last month of the quarter.
In the meantime, the CFO Matteo Lodrini has communicated his intention to leave his positions in the group starting from 30 June 2023, "to devote himself to a new phase of his professional and personal career".
The spread is stable
The spread narrows slightly, reaching +191 basis points, with a slight drop (-0,07), while the yield on the 10-year BTP stands at 4,16%.
