After a negative opening, the European stock exchanges took the road of recovery for a while and then fluctuated around parity. All eyes are focused on the roundup of macro data released in the morning: the Zew indices from Germany which indicate the fear by German entrepreneurs of a slight recession due to the expected rate hikes by the ECB, the Eurozone quarterly GDP which is stagnant. Unemployment figures in the United Kingdom are also disappointing, while in Italy theinflation it grew less than expected, but is up on March. The picture therefore remains to be monitored: this afternoon the speeches by the president of the ECB Christine Lagarde and some members of the Fed's Fomc.
This climate explains the weakness of the main European stock exchanges, starting with Milano (Ftse Mib +0,06%), which raises its head thanks to the rally of Mps. Frankfurt (+0,13%) is the best followed by Madrid (+ 0,10%) and London (+0,07%) which was weighed down by Vodafone's slide (-4%) after the announcement of rather disappointing revenues (+0,3%) and the dismissal of 11 employees in the next three years. Basically unchanged Paris.
Germany: the sentiment of German entrepreneurs plummets
THEZEW index in German economic conditions recorded a decline of 34,8%. The survey of economic sentiment reached its lowest level in the last five months: -10,7 in May, against the previous 4,1% and decidedly worse than expectations (-5,3%).
Stock exchanges latest news: Eurozone GDP and inflation
According to new Eurostat data, in the first quarter of 2023 the GDP of the Eurozone it increased by 0,1% and in the EU by 0,2% compared to the fourth quarter when it was stable in the first and down by 0,1% in the second. Data indicating a phase of economic stagnation. The number of people in employment increased by 0,6% in both the euro area and the EU in the first quarter of 2023, on a quarterly basis, when it had increased in both zones by 0,3%. Eurostat indicates this.
In particular, in Italy GDP growth in the first quarter was 0,5% after -0,1% in the last quarter of 2022; Germany 0% after -0,5%; France 0,2% after 0%; Spain 0,5% after 0,4%.
Inflation rises less than expected, but rises to 8,2%
THEIstat corrects slightly downwards inflation estimates in April. In April, prices grew by 0,4% on a monthly basis and by 8,2% on an annual basis, from +7,6% in March and against +8,3% in the preliminary estimate. The institute underlines the interruption of the "inflation recovery phase", mainly due to a new acceleration in the trend dynamics of prices of energy goods. On the other hand, the prices of food products are slowing down. Therefore, the growth of prices for the well-known "shopping cart" slows down, which fell to +11,6%, from +12,6%.
slow downunderlying inflation. The Institute adds that core inflation, net of energy and fresh food, records a small slowdown from +6,3% to +6,2%, as does that net of energy goods alone, which goes from + 6,4% to +6,3%.
Piazza Affari runs with Mps, but sales rain on Tim
A Business Square utilities are doing well, all up, but banks weak except for Ps (+4,85%) on top of Ftse Mib, followed by Erg (+ 2,59%), Interpump (+ 2,02%) and Terna (+ 1,71%).
Sales click on Tim which leaves 1,86% on the ground at 0,2633 euros while following Bloomberg's indiscretion on a possible renunciation by Cdp of the offer for the fixed network.
Also in red Moncler (-1,31%), stellantis (-1,09%) despite the acquisition of 33,3% of Symbio, Tenaris (-0,90%) And Cnh (-0,89%).
The session is enlivened by the freshman Lottomatica (+1,21% to €8,55 per share). Recently landed on the Euronext Milan segment, the Italian holding company has today announced the financial accounts for the first quarter of 2023 and the launch of a bond for a total nominal amount of €1,12 billion, consisting of senior secured notes maturing in 2028 and senior secured floating rate notes maturing in 2028.
White Bridge launches a total takeover bid on Reevo with a double-digit prize
The offer is aimed at Reevo delisting, an Italian provider that offers cloud and cybersecurity services. Nebula Aurea BidCo (vehicle controlled by private equity fund White Bridge) promoted atotalitarian takeover bid on the group's shares at a unit price of 17,6 euros, which incorporates a premium of 20,8% compared to the official price at the close of 15 May 2023, 14,57 euros. The maximum consideration is 86,7 million euros.
The spread is stable
On the bond front, little moved lo spread BTP-Bund. The differential between the ten-year German BTPs and Bunds is stable at 187 basis points (down by 0,12%) while the Italian annual yield rises to 4,16% and the German one to 2,29%.
Oil up, gas down again
The price of Petroleum it regained enough altitude to return above 70 dollars a barrel again, so as to avoid further falls towards the lows. WTI crude oil marks 71,4 dollars a barrel (+0,41%), while Brent at 75,55 dollars marks an increase of 0,43%. Instead, continue the descent of the natural gas in Amsterdam (-1,03% to 31,97 euros per MWh). while looking at the level of inventories, higher than the average of previous years.
