With a final snap the European Stock Exchanges closed slightly higher, in the wake of Wall Street's gains, in turn driven by big tech and the Nasdaq (+1,3%). For all it closes (in Europe) or is closing (in New York) best week since november, above all thanks to the leap made by the price lists on Monday, following news of a possible peace plan in Ukraine which, at the moment, has not yet made great strides.
A little optimism was instilled today, in the middle of the day, by the news relating to the video call lasting about two hours between Chinese leader Xi Jinping and US President Joe Biden. The words reported by the Chinese press seem to be a sentence from the Ching, the famous classic of the Celestial Empire, considered by Confucius as a book of wisdom and popularly used for divination purposes, but that is enough to rekindle hope on the markets.
Xi allegedly told Biden that conflicts and clashes like the one taking place in Ukraine I'm not in anyone's interest. “Peace and security are the most precious treasures of the international community”. The United States and China must not only "lead the development of bilateral relations on the right track, but also assume due international responsibilities to carry out efforts for peace and tranquility in the world". Biden reportedly asked his Chinese counterpart about use his influence on Vladimir Putin to end the war.
The conversation fell on the 23rd day of the war and on the anniversary of the annexation of Crimea to Russia, celebrated with some solemnity by Moscow.
Volatility therefore remains lurking and today could reappear overseas as it is also the day of the three witches, when investors close positions in futures and options contracts before they expire, which often leads to large and unexpected market movements.
Between Raw materials oil futures are little moved. After yesterday's large rise, Brent gains a further 0,5%, 107,91 dollars a barrel; Wti, +0,91%, 103,98 dollars a barrel.
In the currency the dollar strengthens: the euro loses about 0,5%, with the cross around 1,102.
European stock exchanges uncertain
So this session closes well under the banner of uncertainty on the European markets. The final figure is moderately positive for Piazza Affari, +0,41%, to 24.222 basis points, Paris +0,12%, Frankfurt +0,15%, London +0,29%. Madrid is flat, while Amsterdam is much more convinced, +1,26% thanks to technology stocks.
Moscow has not yet reopened its doors, but central bank governor Elvira Nabiullina today announced that trading of OFZ government bonds in rubles will resume on Monday.
The governor, proposed by Putin for a third term, also decided to keep the reference rate unchanged at 20%.
The fact that Russia paid the 117 million in interest on two sovereign dollar bonds also brought some relief to the markets, easing doubts about its ability to service its external debt after the harsh sanctions imposed by the West.
However, S&P cut the country's rating from "CCC-" to "CC", two levels above default.
Atlantia queen in Piazza Affari, Eni and Iveco do badly
It stands out among the worst blue chips in Milan today Eni, -2,91%, a dry loss after presentation of the 2022-25 plan. Evidently the announced industrial strategies and financial targets did not convince much, since from these the quotations of the share began to fall. The plan envisages cash flow generation of 14 billion, the distribution of an annual dividend of 0,88 euro per share, a treasury share buyback program of 1,1 billion and average annual investments of 7 billion with a focus on new energy and sustainable mobility. They are at the bottom of the list Iveco -2,96%; Azimuth -1,17%; A2a -0,83%; Unicredit -0,79%.
Atlantia leads the rises, +3,61%, after yesterday the Court of Auditors gave the green light to the preparatory acts for the sale of Autostrade per l'Italia to the consortium led by CDP. Among the best stocks Inwit +3,01; Stm +2,94%; Mediobanca +2,22%.
Enel rises by 0,7%, in the light of 2021 results announced yesterday. Equita confirms the positive view on the stock and claims that Enel's profile is "attractive" after "good indications for 2022".
Poste Italiane loses 0,3%, on the day a binding agreement is signed with Opus, wholly owned by the Marconi family, and the private equity firm Siparex for the acquisition of a majority stake in the healthcare logistics company Plurima.
Stable spreads
The spread is little moved: 151 basis points (+0,19%) with a ten-year Italian rate of +1,87% and +0,36% for the Bund with the same duration.
The picture calls for caution also on bonds. In the US i T-Bond prices are mixed and the yield curve flattens. It should be remembered that an inversion of the curve is read as an omen of an imminent recession. The 2,192-year yield is down from 2,169% yesterday to 2% this morning; five weeks ago, it had exceeded 2019% for the first time since August 2021; 1,51 closed at around 0,401%. The three-month US bond yield is up to XNUMX%.
Meanwhile, the Fed bankers are expressing their opinion on Jerome Powell's choice to contain the rate hike to 25 basis, while announcing a massive series of subsequent interventions. According to Saint Louis Fed President James Bullard, this is not enough: the aim should be to bring the key rate above 3% this year, for a total of 12 rate hikes in 2022. For Bullard, “the Committee will need to act quickly to address this situation or risk losing credibility on its inflation target.
