The end of the game was markedly up for the European stock exchanges, despite the inflation in April in the United States, higher than expected, which sent the continental markets into a tailspin for a short time and led to an uncertain start on Wall Street. However, the inconstancy is now the constant of the period and after a heeling the European lists have started running again without paying too much attention to overseas volatility. The main indices in New York are still looking for a precise direction. The Dow Jones rises, the Nasdaq falls, weighed down by sales on big tech.
Piazza Affari queen in Europe
Piabusiness square closes queen in Europe, with a leap of 2,84% and climbs back to 23.724 basis points, thanks to the financial sector, quivering after the buyback announced by Unicredit (+10,79%) and following the rumors about the future of Generali (+0,28%), which rekindles speculation on banking risk.
They appreciate each other decisively too Paris + 2,5% Frankfurt + 2,15% Amsterdam + 1,94% Madrid +2,15% and London +1,44%. The mining, automotive, travel and leisure sectors set the tone for the other price lists. Highlights include Swedish Match (+8,95%), a Swedish tobacco company, with the announcement of a recommended cash offer by Philip Morris (+3,96%) for around 161,2 billion crowns ( equal to 16 billion dollars).
Calm on government bonds in the euro area
Let's start with the data on consumer prices in the US in April, which increased by 0,3% compared to March (expected +0,2%) and by 8,3% on an annual basis from +8,5% in March. A slowdown can therefore be noted, which may suggest that the peak has been reached, but the figure is higher than the expectations of analysts who estimated growth of 8,1%.
The fact that inflation is confirmed at its 40-year high and that it could lead the Fed to accelerate towards a more restrictive policy hasn't shaken bonds too much, however. The 2,97-year Treasury is yielding XNUMX%, down slightly since yesterday's close.
Even in the euro area rates have fallen slightly, although Christine Lagarde confirmed a probable intervention by the ECB in July: the central bank - said the president - will probably end the bond purchase stimulus program at the beginning of the third quarter of 2022 and a few weeks later it may possibly increase rates.
In this context it recedes beyond imagination spread between the Italian and German ten-year period which closes at 190 basis points, with a drop of 5,72%. The yield of the BTP returns below 3% to +2,08%, while that of the Bund stops at 1%.
The rate on the one-year BOT is also positive on the primary for the first time since June 2020. In today's Treasury auction, the yield on the 12-month Italian bond rose to 0,121% from -0,105% on the April placement. The maximum pre-established amount of 6,5 billion has been assigned against a demand that has exceeded 9,73 billion euros.
Euro recovers slightly against the dollar, but Amundi expects parity within six months
Today the euro takes some timid steps forward against the dollar, but the exchange rate is not far from where it has stalled in recent weeks, namely 1,05. The Financial Times reports that, according to Amundi, the single currency is destined to parity against the greenback within six months. To say it is Vincent Mortier, head of investments of the French giant, according to which the priority of the ECB will remain that of keeping sovereign yields under control, rather than inflation. Otherwise, the Fed will accelerate its move forward in a restrictive direction and it will be this gap that will produce a devaluation effect on the euro against the dollar.
Oil runs, pushed by China
Purchases on futures of the Petroleum (Brent +5%, 107,6 dollars a barrel) waiting for the EU to establish the embargo against Russian supplies, but above all thanks to positive news from China, which also helped Asian stock markets.
Notably, Shanghai officials said half of the city had achieved "COVID-zero" status, while US President Joe Biden said he was considering eliminating Trump-era tariffs.
Also, inflation doesn't bite in the Celestial Empire, as it does in the rest of the world, and this, according to Oanda senior market analyst Jeffrey Halley, gives the Chinese government room to unleash some juicy stimulus.
In Milan boom of exchanges on Unicredit
Everyone is crazy about Unicredit in Piazza Affari, where there has been a trading boom (over 40 million shares, against an average of 23 million per session in the last 30 days). The bank's shares started to rise in the morning, driven by the announcement of a treasury share buyback plan for a maximum amount of 1,58 billion euro and, in any case, no more than 215 million shares, equal to the 9,84% of the capital at current stock market prices.
However, the rumors relating to Mediobanca (+0,43%) also contributed to giving the stock a boost, stimulating for the entire financial sector. According to Il Sole 24 ore, Piazzetta Cuccia has a dossier on the table that foresees the exit from Generali, in favor of an asset management operation with three potential targets: Banca Mediolanum (+ 4,51%), General Bank +(+6,32%) and Azimuth (+3,43%). A plan which, according to the newspaper, would restore peace among the shareholders after the battle that took place over the Lion of Trieste. Meanwhile, Mediobanca presented the quarterly report with a net profit in the 9 months of 716 million, beyond expectations, while the CEO Alberto Nagel threw water on the fire of the news: Generali, he said “performs an important task for Mediobanca because it is a risk uncorrelated to the banking one. We are very satisfied with this type of exhibition also in the scenario to come”. But he added: "This does not mean that we do not always monitor whether there are opportunities" for consolidation, to finance which it would also be conceivable to reduce the stake in Generali. “There are no ongoing talks today and there are no open dossiers. We are happy and satisfied with Generali's contribution” and therefore to change the status quo we must have concrete and equally valid options to take a different decision”.
The purchases also spread to other bank stocks, such as Understanding, +4,21%; Bper + 3,6% Bpm bank + 3,48%.
Dusting Cnh, +4,54%, while news from China lent a hand to luxury: Moncler +4,39% and, out of the main basket, it has taken its revenge Ferragamo (+10,08%) in the wake of the ambitious recovery plan announced yesterday by the new CEO and which positively impressed analysts, "although - observes Reuters - there is no shortage of doubts about the effective implementation".
Among the few blue chips in decline is Recordati, -0,94%, following a quarterly report in line with expectations.
