Rising rates and fears of terrorist attacks are conditioning global market sentiment. In Europe, Piazza Affari closes down by 0,95%, weighed down by luxury and energy, Paris loses 0,85%, Frankfurt 1,48% and London 1,82%. The Btp-Bund spread rises by 2,33% to around 140 basis points and a yield of 1,58%.
Throughout Europe, airline stocks are in the spotlight, weighted by the disappearance of Egypt Air's Airbus 320, in flight from Paris to Cairo and whose wreck was found off the Greek island of Karpathos, in Egyptian territorial waters. It is not excluded that it could be terrorism. Oil companies are paying for the fall in crude oil: after falls of around 2%, WTI drops 0,6% to 47,9 dollars a barrel and Brent drops 0,76% to 48,56 dollars a barrel.
Markets are also affected by the expectation of a rate hike in June. For Governor Dudley, Brexit complicates the Fed's decisions on a possible rate hike. At the same time, a June or July rate hike is possible if data confirm a positive outlook. Overall, macro data supports the possibility of a rate hike in June. In April, the super-index of the economy rose by 0,6% and US national economic activity regained its level in April, thanks to a recovery in industrial production. The index that measures the performance of the Federal Reserve of Chicago rose to 0,10 points in April, marking the first increase in three months, after -0,55 points in March. Manufacturing conditions in the Philadelphia area, which had already contracted in April, worsened in May. In the seven days ended May 14, initial claims for unemployment benefits were higher than expected but marked a decline after three consecutive increases and after reaching a maximum in 15 months in the previous eighth. Initial jobless claims fell by 16.000 to 278.000. against expectations for 272.000 units. On the other hand, the delicate situation of the manufacturing sector in the Philadelphia area, already contracting in April, was confirmed by the Philadelphia Federal Reserve index for May, which stood at -1,8 after -1,6 in the previous month, against expectations for a rebound at 3.
Wall Street is also in sharp decline with the Dow Jones falling 1% and the S&P500 0.8%. Bank and oil sales. Buying on Wall Mart and Cisco after better-than-expected quarterly results. Monsanto flies after the German pharmaceutical chemical group Bayer has announced that it has started talks with the American biotechnology group for a possible merger. Monsanto also confirmed that it had received an unsolicited offer from the German giant. The euro-dollar exchange rate stands at 1,121.
In Piazza Affari the worst stock is Bper -4,68%. Standard Ethics has downgraded the Rating attributed to Banca Popolare Emilia Romagna (Bper) to "EE-"2 from the previous "EE". However, the sales affect various stocks in the sector: Banco Popolare: -1,11%, Bmps -1,15 .1,48%, Unicredit -2,41%. But the financial sector moves at two speeds: Intesa +0,47%, the best of the blue chips, Ubi +0,54%, Unipolsai +4,13%. At the bottom of the Ftse Mib are Yoox -3,55% followed by oil companies Saipem -3,28% despite the push for a possible consolidation of the sector that came with the announcement of the maxi-merger between the French Technip and the American FMC technologies. Tenaris -3,11%. Ferrari also down -XNUMX%.
Also highlighted on the Ftse Mib are Mediaset +1,15% and Buzzi Unicem +0,23%. Outside the Ftse Mib, Visibilia collapses -19,48%, after the launch of investigations by the Milan Public Prosecutor's Office while Zucchi (+29,09%) celebrates the effectiveness of the debt restructuring agreement.
