The European financial week is off to a good start, though the absence of Wall Street, closed for the 'Juneteenth holiday', held to commemorate the liberation of African-American slaves.
Toned banks in the Eurozone with Lagarde
It is above all the banks that set the tone for the price lists in the euro area, on the day when Christine Lagarde confirmed the rate hikes, one in July and the other in September and perhaps later with a gradual path. Inflation, on the other hand, is running fast, as evidenced by the higher-than-expected surge in producer prices in Germany, which reached 33,6% on an annual basis. However, the president of the ECB also reaffirmed her determination to act against any risk of fragmentation of monetary policy with the anti-spread shield.
In this period the focus of investors remains on central banks and Fed Chairman Jerome Powell will address the US Senate on Wednesday. Expectations are high after the stars and stripes central bank number one last week promised an "unconditional" commitment to contain inflation.
Holds the euro, despite the French elections and the downsizing of the coalition in support of President Emmanuel Macron.
Milan grabs 22 thousand points, the spread goes down
Piazza Affari closes with an increase of 0,99% and regains 22 thousand basis points, despite the coupon detachment by seven blue chips, which weighs 0,29% on the index.
It is the spread is stable, but yields rose: +3,65% (from +3,58% on Friday) for the ten-year BTP and +1,73% (from 1,66%) for the Bund, with a differential of 192 basis points (+ 0,2%).
In the meantime, today the placement of the new BTP Italy by 2030, with a minimum guaranteed return of 1,6%. The demand, at 14,30 pm, was close to 2,5 billion.
Banks stand out in the stock marketaffected by the recent tensions on government bonds. The podium of the Ftse Mib is all for Unicredit +4,42%, Banco Bpm +4,31%, Intesa +3,83%. Bper is slightly behind +1,79%. Among the financials, Finecobank +3,28%, Generali +1,83% shine.
Moving on to other sectors we appreciate Telecom, +2,62%. To explain the good performance, Reuters quotes a source close to the Parisian company according to which Vivendi aims to obtain a valuation of 31 billion for Tim's network with the separation of the infrastructure from the services.
Well the automotive with Ferrari +2,81% and Iveco +2,41%. The oil companies are divided: Tenaris +1,89%; Saipem -1,63% after last Friday's positive leap. Eni shares are up a prudent 0,28% after the oil major was selected by Qatar Energy as the new international partner for the expansion of the North Field East project, considered the largest LNG project in the world. HSBC has raised Eni's recommendation to "Buy" from "Restricted".
The lower part of the list is mostly occupied by the shares of companies that today detached the coupon, such as Hera -5,61%, Snam -2,89%, Terna -2,58%, Poste -2,24%, Stm -0,6%. Positive instead Exor, +0,39%, Leonardo +0,37%. Among the stocks in decline A2a -5,48%, Nexi -2,24%.
Paris more sad after the elections
In the rest of Europe the shyest is Paris, which appreciates by 0,64%, thanks to the leap of Renault (+9,54%), galvanized by the buy recommendation of Jefferies analysts, who raised the target price to 40 euros. It makes itself felt on the mood of investors and above all on the French secondary, which closes in the red, the outcome of the French legislative elections from which they emerge weakened President Emmanuel Macron and his project of a “truly European France”. The yield on the ten-year Oat rises to 2,29%, for a spread with the Bund of the same duration growing to 56 basis points (+4,38%).
Madrid +1,72%, Frankfurt +1,06% and Amsterdam +0,89% are more toned.
Outside the euro area, London shines, +1,5%.
He holds the euro, the bitcoin rears its head
On the foreign exchange market the euro moves in fractional progress against the dollar in the 1,054 area, despite the setback of the Ensamble coalition which supports Macron in France and which only obtained a relative parliamentary majority.
Over the weekend bitcoin reared its head, which ended up under $20 last week. Currently, the digital currency is up about 7% to $20.839.
Among the raw materials is little moved the oil, recently held back in its maximum exuberance by fears of recession induced by the change in monetary policy by the main central banks. Brent is up 0,38% to 113,56 dollars a barrel.
Resta focus on gas, which in the morning rose by 7% (126,25 euros) in Amsterdam due to the effect of Russian cuts which put at risk the filling of stocks in view of the winter.
Speaking of Russia, today various newspapers report that Chinese imports of crude oil from Moscow increased by 55% compared to a year ago and reached a record in May, with Russia becoming the Celestial Empire's top supplier at the place of Saudi Arabia.
Lagarde confirms ECB orientation
Expensive energy is holding back growth, warned Lagarde, in a hearing before the Economic Commission of the European Parliament. The economic activity of the bloc "is held back by high energy costs, the intensification of supply chain disruptions and greater uncertainty". However, the ECB must act to stem the race of inflation and the president of the European central bank confirms an initial cut on rates of a quarter of a percentage point in July and a new increase in September, not quantified, which will depend on the trend in inflation.
The rate hike will have to be accompanied by the famous spread shield. “Anyone who doubts our determination” against any risk of fragmentation of monetary policy “is making a big mistake,” Lagarde said. “We have demonstrated time and again in the past that we can act with flexibility and creativity and we will do it again,” she added.
