The market sky turns blue again. To underline it, surprisingly, is the economic bulletin of the ECB, generally stingy with good news. The central bank expects theretreating inflation by the end of the year “below 3 per cent”. The data on consumer prices in Spain this morning contributes to confirming this judgment: they increased by 3,3% on a year-on-year basis in March, the lowest annual pace since August 2021 and below analysts' expectations. The decline in inflation in Germany's North Rhine Westphalia to 6,9% in March from 8,5% in February also helped European equities. The Federal Statistical Office will publish a flash estimate of nationwide inflation at 14,00. Finally, the ECB has revised upwards the estimates on the GDP of the Eurozone (+0,5%), which in 2023 should drop to 1% from +3,6% in 2022. The unknown factor of the war and the recent turbulence remain on the markets, but the picture improves.
European stock exchanges: the ECB improves estimates and pushes the bull
In the wake of these numbers and the good recovery of the US markets (futures on the rise again today, Nasdaq +0,3%), Business Square scores an increase of more than 1% by overtaking it again quota 27 thousand points. The performance of the other price lists is in line: lo STOXX 600 gains 0,97%, reaching the highest since March 10th. The European banking index +1,99% reaches the maximum of the week. The real estate index +2,96% does even better, greatly reducing worries about a European real estate crisis, evoked by the sharp decline of the Luxembourg bank Aroundtown (active in Germany and the Netherlands) whose prices have more than halved from mid-January.
The signals from retail are also positive: H&M is flying
The incoming signals from retail are also positive. After the American boom of Lululemon (+13% for the creator of yoga and leisure suits), flies this morning H&M +13,87%: The world's second-largest fashion retailer after Zara reported unexpected operating profit for the December-February period but warned that overall sales for the spring season were delayed by cold weather. The broader retail sales index climbed 3,22%.
Btp at auction: yields at minimum
Yields on 5- and 10-year BTPs assigned today at auction together with two CCTEUs maturing in 2029 and 2030 have returned to their lows since autumn. The sixth tranche of the April 2028 BTP was placed for 3 billion at a rate of 3,59% – lowest since October – compared to 3,84% at the end of February; the ninth reopening of the ten-year auction in May 2033, assigned for 3,5 billion, at a yield of 4,12% – the lowest since November – compared to 4,34% in the last auction. Also allocated 1,25 billion each of the Ccteu April 2029 and October 2030.
At the start, the BTPs benefited from the preliminary data from Spain and then gradually reset the gains due to the mixed picture offered by those of the German laender. The ten-year BTP trades at 4,14%. The spread goes back to 181 points.
The banks are running again while the trend of bank CDSs is also calming down throughout Europe. The most tonic is Monte Paschi +4% ahead of. Bank BPM +2%. And to Entente +2%. UniCredit +1,3%.
In great evidence Saipem +2,5% ahead of Hera and Interpump. Both with increases of more than 2%.
Cnh Industrial +1.95% has acquired for $175 million control of Hemisphere GNSS, a global leader in high-performance satellite positioning technology, "a key step" in the development of automated and autonomous solutions for the Agriculture and Construction segments.
Among the negative voices Italian post office -0.8% after The bills. According to analysts, EBIT in the fourth quarter was lower than consensus expectations due to extraordinary items mainly related to tax credit provisions. CEO Matteo del Fante in the conference call noted that deposits grew by almost 4 billion in the first quarter. "Poste - he said - has historically always been seen as a safe haven by Italian retailers if we look back over the last 20 years, during all the crises".
Worth noting is the return to the Stock Exchange on 3 April of Olidata, which went off the list seven years ago.
In light Reply, among the best shares of Piazza Affari with an increase of 4% after the start of hedging with Berenberg's 'buy'.
