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Stock market July 3: Europe runs with Powell, Nasdaq and desistance, the spread also collapses. In Milan, Unipol reignites the banking risk

The trio of news arriving from the United States (Nasdaq record), Sintra (Powell) and France (desistance) drives purchases on European stock exchanges. Milan among the best driven by banking risk, by Leonardo and by Stm

Stock market July 3: Europe runs with Powell, Nasdaq and desistance, the spread also collapses. In Milan, Unipol reignites the banking risk

Le European stock exchanges they are celebrating the new record of the Nasdaq, which for the first time exceeded 18 thousand basis points, while in Milan they are also looking carefully at Unipol's move on Bper and the news coming from Leonardo. The rise in price lists was therefore useful, while the success of the French desistance causes European spreads to fall.

The markets like Powell "satisfied".

The purchases on European stock exchanges were also pushed by words pronounced by the head of the Federal Reserve, Jerome Powell, at the ECB Forum in Sintra, Portugal. The Fed president reiterated the caution about the next cuts of rates, but said he was satisfied with how inflation has started to fall again after the rebound at the beginning of the year. And the markets liked this second part of the speech a lot, with analysts believing that "the president's satisfaction" could be the sign of a Fed ready to intervene on rates, perhaps as early as September.

Stock market July 3: Europe is driven by tech stocks

The trio of news arriving from the United States (Nasdaq record), Sintra (Powell) and France (desistance) drags the European stock markets upwards with the Stoxx 600 up 0,89% driven by tech subindex (+ 2%).

Among the price lists, Paris plays the leading role (+1,5%) while Marine Le Pen's party moves further and further away from the absolute majority in view of the run-off on 7 July. Follows closely Milan, which in the middle of the day rose by 1,31%, approaching 34 thousand points again (it is at 33.921 points) driven by banks, Unipol (+ 3%) and Leonardo (+2,4%). Toned too Madrid (+ 1,1%), Amsterdam (+ 1,05%) and Frankfurt (+0,99%), while outside the EU London advances by more than half a percentage point less than 24 hours later early elections on July 4th

In Milan, Unipol reignites the risk and the banks run

The news came like a bolt from the blue just before the markets opened: Unipol rose to 24,62% of the capital of Bper Banca with a further 4,77% stake through a "share swap" contract with expires on February 25, 2028. An announcement that immediately rekindled the bank risk, encouraging purchases across the entire sector. And so, halfway through the session, Ps, suspected of a possible merger with Bper, is at the top of the Ftse Mib with an increase of 5,56%. B for Bank in turn marks +5,16%, followed by Bpm bank (+3%), another possible protagonist of the risk. Among the best titles too Pop Sondrio (+ 2,74%) and Unicredit (+ 2,31%).

But there are also other issues in the works in Milan. Also worth mentioning is the performance of stmicroelectronics, which shines on Piazza Affari (+2,7%) in the wake of the new records of the Nasdaq Composite (+0,8%) which yesterday exceeded 18.000 points for the first time, and the enthusiasm of the European tech sector. Also rising sharply Ferrari (+2,83%) which benefits from the boom in Tesla (+10,2% to 231,26 dollars). The automotive giant announced that in the 2nd quarter of 2024 it produced almost 411 thousand cars and delivered approximately 444 thousand cars with a decrease of 4,8% compared to the same period in 2023.  

Eyes up too Leonardo (+2,32%). According to the German newspaper Handelsblatt, the Italian government is planning to purchase Panther tanks and Lynx armored fighting vehicles from the German Rheinmetall group for around 20 billion euros. Italy, continues the newspaper, intends to purchase at least 350 Lynx armored vehicles and over 200 Panther tanks over 15 years. In the meantime, according to Il Sole 24 Ore, the negotiations between Leonardo and Rheinmetall to create an alliance on land armaments are "very advanced" and the signing of a preliminary agreement could also arrive in the next few hours.

The French desistance pushes EU spreads lower, yields also down

The success of the desistance which put the republican front back on its feet and removed the absolute majority for the Rassemblement National of Marine Le Pen and Jordan Bardella pushes the spread Europeans. The differential between the 142-year BTP and the German Bund has in fact fallen to 147 basis points from 160 on Friday (it had exceeded 10 in recent weeks), while that between the French 65-year Oat and the Bund has fallen to 79 basis points, moving away from the highs of XNUMX points touched close to the vote. Yields also fell sharply: the one on ten-year BTP benchmark is at 4,02% from 4,07% yesterday, the one on Waist is at 2,59%, the one onOat 10 is at 3,23%. 

The other markets

On the currency, theeuro strengthens and rises to 1,076 dollars, from 1,073 yesterday. The price continues to rise Petroleum with Brent at 86,36 dollars a barrel and WTI at 82,83 dollars. It drops by almost one percentage point natural gas in Amsterdam, standing at 33,3 euros per megawatt hour.

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