Piazza Affari improves its position above 25 thousand points and closes the week up, with a daily increase of 0,45% in a positive European context and with Wall Street in progress, the latter thanks to an economy in great recovery and with Joe Biden's 6.000 trillion dollar plan for 2022 on the table. For the New York Stock Exchange, this is the last session of May, as the lists will be closed next Monday for Memorial Day.
In the next few hours, the president should present the budget for his mandate to Congress and with all this liquidity at stake stars and stripes inflation seems to remain in the shadows, despite April's jump to a 13-year high. The Federal Reserve's preferred measure for calculating price tensions, namely the PCE (personal consumption expenditures price index) data, grew by 0,6% on the previous month and by 3,6% on last year. The "core" component, excluding volatile elements, rose by 0,7% compared to March and by 3,1% compared to a year earlier, against expectations for increases of 0,6% and 2,9%. Personal incomes fell by 13,1%, less than estimated, once the effect of aid to families ended, while consumer spending increased by 0,5%, as expected.
The assurances given by the Fed on its monetary policy, even in the face of any flare-up in prices, appear to convince the market, although other institutions this week opened the possibility of a tightening of their policies, in New Zealand and the United Kingdom. The T-Bond market remains stable, indeed the 1,59-year Treasury rate, after a start with falling prices and rising rates, is currently in retreat with a yield around 1,218. On the foreign exchange market, the dollar, which was appreciating against a panel of currencies, is slowing down. The euro trades at the levels seen on the eve, around XNUMX. The raw materials are not moved.
European equities jumped off to record highs again today, led by UK financials, while the gradual easing of pandemic restrictions across the continent boosted travel and leisure stocks.
Optimism in the future of the European Union is also consolidating, with the Commission index measuring the confidence of businesses and consumers on the rise and Ursula von der Leyen confirming the issue of common anti-crisis bonds as part of the Recovery fund. Meanwhile, the Italian premier, Mario Draghi, speaking in a debate with the chancellor Angela, Merkel promoted by the Global Solution forum, calls for a greater sharing of sovereignty among the EU states: "Sharing sovereignty - he says - can also concern other sectors beyond the question of health, international events show how we need this in Europe”.
Finally, good news comes from the vaccine front, however the green light from the EMA (European Medicines Agency) to the use of Pfizer-BioNTech serum for adolescents from 12 years of age up to 15 years. The opinion will now be forwarded to the European Commission for final approval. In this picture, Frankfurt rises by 0,73%; Amsterdam +0,7%; Paris +0,75%; Madrid +0,41%; London +0,09%. Piazza Affari records the greatest increases on Nexi +2,37%; Moncler +1,83%: Leonardo +1,39%; Atlantia +1,39%.
The banking sector remains bubbly, at least for some. Unicredit stands out among the big ones +1,35%, which could participate in the hypothesised stew of the Mps network (+3,33%), in a perspective relaunched today by Il Sole 24 ore. Investors appreciate and in the session the stock of the oldest bank was suspended due to an excessive increase, while it touched +8,20%, 1,29 euros per share, with over 11 million shares changed hands from a 30-day average of 4,3 million. According to the newspaper, among the various dossiers involved, the hypothesis of a stew is gaining ground. In addition to Unicredit, which has long been indicated as the main candidate to take over Montepaschi, the operation could expand to Mediocredito Centrale, Banco Bpm (+0,1%) , Bper Banca (-0,63%) up to Poste Italiane (+0,13. XNUMX%).
According to Intesa Sanpaolo analysts, “the break-up could make the integration of MPS more attractive, reducing the volume of assets to be acquired and solving some issues related to antitrust”. On the other hand, the broker does not see any industrial sense "in the purchase of bank assets by Poste Italiane".
In favor of the Bestinver stew, “what we don't understand is how badwill and DTAs can be attributed and last but not least where the legal risks would go,” the broker points out. Profit-taking penalizes Tenaris -1,06% and Saipem -0,97%, Cnh -0,74%, while Telecom loses 0,47%, with analysts cautious on the single network project after the appointment of new top management of Cdp.
Out of the main basket stands out Cattolica Assicurazioni (+14,9%), after i first quarter results closed with a net profit of 45 million euro, more than tripled compared to the previous year, benefiting from the growth in income and profitability in the Non-Life business. Intesa Sanpaolo analysts expected a net of 43 million before the minorities. Generali, Cattolica's main shareholder with a stake of approximately 24%, rose by 0,84%%.
Ovs leaps 5,46% in the wake of the filing of supplementary information attached to today's meeting on the 2021-23 plan with expectations of a strong post-pandemic sales rebound this year, as a broker points out. In green the bond. The spread between Italian and German ten-year bonds closed at 105 basis points, down by 1,77% and the BTP rate was +0,86%.
As for auctions, the Treasury allocated 8,5 billion this morning with mixed yields for medium-long term securities. In particular, the MEF assigned the seventh tranche of the five-year BTP expiring on 1 April 2026 for 3 billion, the maximum expected offer, with a gross yield of 0,17% (unchanged compared to last month's auction); 3,5 billion of the sixth tranche of the ten-year TTP expiring on 1 August 2031, the maximum offer, with a gross yield of 0,94% (+6 basis points). CcTeu maturing on 15 April 2026 for €2 billion were also placed with a gross yield of -0,07 per cent (-1 bps). Demand was 3,027 billion (1,51 coverage ratio).
