Old world, goodbye. The markets have already entered a new dimension; much less beautiful and comfortable, unfortunately. Jerome Powell, president of the Fed, chose Sintra, site of the annual meeting of the European Central Bank, to solemnly reiterate what the US Bank is practicing in practice: the fight against inflation comes before growth. Hence a robust cure of high rates destined to last quite a while. “Are we running too much? – added the banker – Yes, there is a risk. But let's put it this way: price stability is what matters most".
He nods beside her Christine Lagarde: the ECB will do its part, even if, to avoid fragmentation among the countries of the euro, it will be necessary to proceed on sight, gradually, but above all with a firm hand. Because of this the anti-spread shield to be applied from 21 July onwards remains top secret: there is no need to lend a hand to the bond vigilantes who are ready to unleash themselves on the markets.
In short, on the day when the stock exchanges archive the worst semester of the last decades, central banks deliver another blow to the Bull. “Let's not delude ourselves that we can return to ultra-low rates – explains Lagarde – inflation will remain at higher levels than in the recent past despite our interventions”.
"It may be that the peak has already been reached - comments Philip Hildebrandt, number two of BlackRock - but with these choices the central banks assume the risk of causing a violent recession".
Futures down in Europe, Asia weak
The Stock Exchanges, resigned, do not react much to the new look of bankers: The future of the EuroStoxx50 index is down by 0,5%. US futures fluctuate around parity.
Asian stock exchanges are also weak: Nikkei of Tokyo -1,3%, -8% in the semester. Japan's industrial production fell 7% yoy in May, worse than economists' forecast, mainly as the auto industry was hit by component shortages due to the pandemic
Kospi of Seoul -1,3%, -21% for the semester. South Korea's industrial production remained at the previous month's level in May. The services sector was up 1%.
BSE sensex of Mumbai +0,4%, -8,5% per semester.
China wakes up: PMI above 50
The exception is China. The CSI300 the Shanghai and Shenzen lists gain 1,5%: the quarter, at these prices, closes with an increase of 6,4%, while the six-month period shows a loss of -9%.
The price lists are driven by the signs of a recovery in activity after the anti-Covid closures. The PMI index of services companies jumped up to 54,7 points. The manufacturing PMI enters the expansion area at 50,2, from 49,6 last month.
dish theHang Seng of Hong Kong, which ends the second three months of the year with the same balance, the first with a decrease of 6%. The city is preparing to receive Xi Jingping.
The rules on the car hold back the Exor group
Not only Sintra. Yesterday the geopolitical news was marked by the NATO summit in Madrid. According to NATO's new Strategic Concept 2022, i.e. the guidelines of the military alliance for the next ten years, Russia is "the most significant and most direct threat" to the peace and security of member countries. The document also accuses China of wanting to form a "strategic partnership" with Russia. The leaders of NATO member countries have formally invited Sweden and Finland to join the military alliance, after the removal of the veto placed by Turkey.
Meeting in Luxembourg, the environment ministers of the European Union member countries reached agreement on the climate measure, the Fit for 55, which among other things provides for the stop the sale of cars with combustion engines.
The news, at least those arriving from the ECB, did not please the stock exchanges. Frankfurt loses ground (yesterday -1,7%) despite a fractional improvement in inflation. In Madrid (-1,57%) the cost of living has again exceeded the double-digit threshold. In Milan (-1,21%) the black jersey goes to the car titles.
Bond purchases are back. The spread between the Italian and German 188-year bonds falls to 16 basis points. The yield of the BTP fell by XNUMX basis points.
Wall Street flat, OPEC+ today
Flat closing yesterday on Wall Street: Dow Jones + 0,27% S & P 500 . Nasdaq -0,07%. 3,10-year Treasury notes trade at 3,14% yield, up from XNUMX% yesterday
WTI oil around 110 dollars a barrel, little moved. OPEC+ meets today. Few news in sight: Saudi Arabia and the UAE have declared that they are already close to the peaks of production.
Euro dollar at 1,045. Yesterday and the day before, the cross recorded losses of more than 0,6%.
Bitcoin in the fourth consecutive session of decline, at 20.030 dollars.
De Nora lands on the list, Unicredit sells credits to Illimity
Title today From Nora makes its debut on Euronext in Milan. Barclays raised its target price by Tim at 0,19 euro. Unicredit announced that it has sold a 1,3 billion euro portfolio of problem loans to Illimity.
Edison signed a modification of the agreement for the sale of the stake in the Reggane Nord license in Algeria, following the exercise of the pre-emption right by Repsol. The investment will now be sold in part to Repsol (6,75%) and in part to Wintershall Dea (4,50%).
