Heavy setback for the stock markets and for the Btp, held back by the interventions of the central bankers. After the disappointment of US producer prices, the data from Germany (+17,8%) gave new strength to the hawk party. Isabel Schnabel, a German member of the ECB, said this morning that markets are underestimating the risk of inflation. We are still far from being able to claim victory ”, she said in an interview with Bloomberg adding that“ we may have to act more forcefully ”.
Has a reduced impact the news of the new decline in natural gas, which fell in Europe below the threshold of 49 euro/mWh for the first time since December 2021. -37% since the beginning of the year.
This is how cyclical stocks, protagonists of the rally of recent days, retreat. The banks bounce, supported by the prospect of further rate hikes. At 13 pm Milan leaves three quarters of a point just above 27.600 points on the ground. Similar reductions for other European markets, including Germany but with the important exception of Mercedes +2,5% after the good results of the quarter and the launch of a buyback for 4 billion euro. Down even Paris despite the recovery of Air France Klm.
Stock market latest news: bond yields up, spread rises to 188
The Italian paper on the bond market is under fire. In particular, in the 2-year segment, the most sensitive to rate hike expectations, the BTP yield reached 3,56%, a new high since the beginning of August 2012 (yesterday at 3,43%). The 4,43-year BTP rate trades it is at 4,48% after a peak of 4,34% - the highest since the beginning of January - compared to XNUMX% at the last closing. The spread it stood at 188 basis points after widening to 191 from 183 in yesterday's session finale.
The thirtieth anniversary after yesterday's placement is also in tension: the yield on the 30-year segment it is at the highest levels since the beginning of the year at 4,47%, with a peak at 4,54% close to the opening, from 4,40% yesterday at the closing.
The banks rebound in Piazza Affari
The banking sector is doing well in Piazza Affari, at its highest level in two years. Lead the race B for Bank +3,3% ahead of Bpm +1,6%. The rise of Unicredit and Intesa was more contained. Mps leap +6%.
According to the Scope rating analysis, the increase in interest rates, from which Italian banks expect a 10%-20% boost to net interest income in 2023, makes the prospects for the year that has just begun positive, despite the risks relating to the cost of credit and funding.
In the fourth quarter of 2022, the average roe stood at 9,3%. Less brilliant Mediobanca which saw an increase in the variable part of salaries and higher costs for business growth.
Tim in the spotlight: waiting for the CDP offer
In the spotlight Tim awaiting the council of CDP which will formalize the offer for the network in the next few days, together with Macquarie.
Instead, energy stocks were sold as the price of crude oil falls. The most affected is Tenaris which loses 4% due to the effect of the realizations after yesterday's leap (+8%).
It deflates Pirelli -2% after the denial of an exit plan by the main shareholder, the Chinese Sinochem. Skeptical of Equita's denial: “We remain of the opinion – reads the daily report – that the movements in the shareholder base in recent days indicate that at least there are evaluations in progress. In the event of Sinochem's exit, we believe that the basic scenario could be that of forming a hard core with an Italian majority around Camfin".
Among the minuses, Recordati stands out -3,7 after the downgrade of Barclays to 'underweight' from 'equal weight'. Also declining are luxury, Stm and utilities.
Of note on the Euronext Growth Milan the collapse of Sciuker Frames 10%% penalized by the government's decision to suspend the invoice discount and the transfer of tax credits relating to tax incentives on building bonuses.
Wall Street starts a bearish opening in the last suta of the week. Nasdaq futures signal a 1% decline.
