The new inflation record in the euro area (+8,1% in May) casts despair on the bloc's stock exchanges, which closed negatively with the exception of Amsterdam (+0,64%). The price race in the EU also affects theWall Street's out of tune boot, who also looks with cautious concern at today's meeting between US President Joe Biden and Fed Chairman Jerome Powell, in the presence of Treasury Secretary Janet Yellen.
To worsen the picture contributes poi oil which is moving sharply higher (Brent +1,23%, 123,17 dollars a barrel), after the surprise agreement found overnight by the European Council on the embargo on Russian crude oil.
In general, for Italy today the risks are high, observes the governor Ignazio Visco in his annual report and "the war has radically accentuated the uncertainty".
In this situation Piazza Affari loses 1,22% and falls back to 24.505 basis points, while the fear of a hawkish ECB causes the yield on government bonds to soar. The 3-year BTP largely exceeds 3,13% and closes at +1,12%; the Bund with the same duration rises to XNUMX%, per a spread of 200 basis points (+ 3,35%).
The euro takes a breather and retreats by 0,5% against the dollar, for an exchange rate around 1,072.
European price lists broken down
In the rest of Europe Paris is in black jersey with a drop of 1,43%; Frankfurt -1,3%; Madrid -0,85%. Outside the single currency area, London floats on parity, favored by the good tone of oil stocks. The Ftse 100 also benefits from the leap by Unilver (+9,43%), which also tops the main Amsterdam listing following the appointment of activist investor Nelson Peltz to the group's board of directors.
In Piazza Affari Tim shines, Ferrari badly
In the business square the blue chip queen of the day is Telecom (Tim), +2,91% with the market continuing to reward the single network project with Open Fiber.
The banking sector is mixed. Among the best blue chips of the day is Bper, +1,7%, after Exane analysts who raised the target price to 3,2 euros and confirmed the "Outperform" judgment (it will do better than the market); Banco Bpm appreciates slightly +0,19%, while Intesa loses 1,41%.
The session is weak for oil stocks: Eni saves itself, but Tenaris loses 3,67%. Among the utilities, Italgas revives +0,25%, while Enel does badly -1,91%.
Il red today is particularly flaming for Ferrari, which falls by 4,3%. The prancing horse has completed the sixth tranche of its treasury share purchase programme, while Citigroup analysts have cut the target price to 140 euros and confirmed the indication to sell. In the slipstream, Exor loses ground, -2,53%. Prysmian -2,69% and Recordati -2,59% are also negative.
Generali limits bad mood to -0,53%. The Ceo of the Lion, Philippe Donnet, heard in the parliamentary commission, said that an aggregation of Generali with Unicredit (-0,15%) would not make sense and dismissed the hypotheses of French aims as fantasy. Donnet then observed that “Generali they must not be the property of some entrepreneurs”. The Trieste company is so important as to be "a good for everyone, a common good and therefore we need a governance like a public company", as happened in the last meeting.
Among the minor titles Tinexta stands out +9,32%, which entered into binding agreements for the sale of the Credit Information and Management division to CRIF for an enterprise value of 237,5 million.
Giorgio Fedon Figli spa, listed on Euronext Growth Milan, rose by 1,2%. Luxottica (-1,58% in Paris) has announced that with today's purchase of more than 90% of the company's capital, the conditions have been met for a total takeover bid, launched at a price of 17,03 euros per action and aimed at the delisting.
Unbridled inflation in May
Il topic of the day is inflation. According to Eurostat's flash estimate, the trend in consumer prices in the euro area recorded in May an annual increase of 8,1%, the all-time high since these surveys took place. The data is higher than expected and challenges the ECB again.
For the Italian premier Mario Draghi, in reality, we need to move with caution, because the price race in the EU is very different from that in the US. Excluding energy and food growth is not so high, according to the former president of Eurotower, this is why future expectations are different. A more rapid tightening is needed in the US, while gradualness is justified in Europe.
The member of the Governing Council of the ECB, Peter Kazimir, does not think so, who is ready to talk about a hike of 50 basis points starting from the month of July. In any case, "I expect it to reach 25 points in July, while in September it could reach 50 basis points," he said in an interview with Reuters.
The inflationary cyclone is also hitting Italy, where Istat reveals that in May the figure was +6,9%, a level not seen since 1986 and which is higher than market expectations. Core inflation, net of energy and fresh food, is at 3,3% from 2,4% in April and that net of energy goods alone is +3,7% from +2,9%.
