The European stock exchanges archive another mixed session and little movement, in line with the slow performance of Wall Street (where the S&P 500 moves in a record zone) on the eve of the ECB meeting and the data on consumer prices (Cpi) in the US, one of the most monitored for assessing inflation. Government bond yields are down. Meanwhile, US President Joe Biden takes off for his first trip to Europe and packs a plan to vaccinate the world against Covid-19.
Piazza Affari loses 0,26% and closes at 25.741 points. The calm does not stop Nexi, which once again achieved a 2,74% increase today, driven by the optimism associated with the recovery and the foreseeable increase in digital payments. Utilities stand out on the main list: A2a rises by 1,76%, after the announcement of a preliminary agreement with Ardian in the renewables sector, for the generation and supply of energy in Italy. The partnership would follow agreements signed in November 2020, to explore business opportunities related to green hydrogen. In tune Hera, +1,8%. Among the biggest increases of the day also Campari +1,69%; Inwit +1,26%; Stm +1,24%. The banks are shy: Bper +0,84%.
Enel finished flat, after announcing the launch of a multi-tranche "Sustainability-Linked bond" aimed at institutional investors for a total of 3,25 billion euros, on the Eurobond market, by Enel Finance International (financial subsidiary of Dutch law). The bond, guaranteed by Enel, received total orders for around 11,3 billion. The issue is structured in three tranches with maturities in 2027, 2030 and 2036. In addition, Enel Finance International announced the launch of an offer aimed at repurchasing, and then canceling, four series of outstanding conventional bonds, for an overall target amount maximum of one billion euros.
Suffers Ferrari, which loses 2,65% and closes in the black jersey after the news that Benedetto Vigna will be the new CEO starting September 26 and despite the promotion of analysts. The ingenious manager, whose portrait can be read in another First article, has a degree in physics and has spent the last 24 years in the semiconductor company STMicroelectronics. The company of the redheads of Maranello, according to rumors from the Sole 0,37 ore, would also be part of a luxury project with Giorgio Armani spa, presented by some investment banks to Exor (-15%). As reported by the newspaper, the project provides for the transfer of Giorgio Armani to Ferrari and a subsequent capital increase of the Prancing Horse reserved for the designer with a stake between 20% and XNUMX%. However, Exor declined the proposal and both the Agnelli family holding company and Re Giorgio ruled out that this project could take shape.
Male Stellantis -1,4%. In fashion, Moncler loses, -2,24%. A quick look at the rest of Europe shows that Frankfurt is down 0,39%; London -0,22%; Amsterdam +0,46%; Paris +0,19%; Madrid +0,07%, where Inditex (Zara) fell by 1,889% despite the return to profit in the first quarter. In New York, the three main indices move just beyond parity. Small retail investors continue to focus on so-called "meme" stocks. Clover Health hit all-time highs during the session, but then reversed and lost up to 6%. Tech giants edged slightly, especially the 'Faang' group, supporting the Nasdaq index.
In short, markets float in the maximum area, trying to smell the air that blows in the rooms of the central banks. “Inflation is creating uncertainty about what central banks will do or say in the future,” says Emmanuel Cau, European equity strategist at Barclays. “We think central banks will be patient, but we also believe an adjustment in reporting on inflation and policy changes will start in the summer.” For Reuters “next week's Fed meeting should highlight the bank's tapering plans. Even though inflation has spiked in recent months, the fragile labor market is expected to prompt the central bank to maintain accommodative policy.
Meanwhile, today the Bank of Canada left interest rates at 0,25% and announced that it will maintain current levels until inflation targets are met and that it will continue quantitative easing at a rate of CAD 3 billion per week; in the previous meeting, he had decided to slow down the pace of bond purchases from 4 to 3 billion Canadian dollars, given the improvement in the economic outlook. Here: although the recovery continues, it is necessary that the extraordinary support to the economy continue.
In the US and in Europe, the government bond thermometer would say that prudence will still dictate the law even in the awaited meetings. The prevailing reading is that price tensions are temporary and do not tend to accelerate, despite China today showing a 9% annual increase in producer prices in May, up sharply from 6,8% in April and at pace fastest since 2008. The 1,5-year Treasury rate briefly fell below XNUMX% for the first time since May 7.
The closing is positive on the Italian secondary market: the spread between 10-year BTPs and Bunds of the same duration drops to 102 basis points (-1,94%) and the yield of the Italian benchmark falls to +0,77%. After yesterday's success of the syndicated BTP with demand above 60 billion, rates fell in today's one-year BTP auction. The Treasury placed 7,5 billion euros of securities, with the yield falling to -0,49% from -0,443% in May's placement.
On the foreign exchange market, the euro-dollar is in the 1,218 area. Oil slows down, but Brent trades above $72 a barrel.
