The cautious progress in relations between Beijing and Washington (after the meeting of Chinese President Xi Jinping with US Secretary of State Antony Blinken) did not shake the European lists which, in the wake of Asian losses, close down the first session of the week. What made today's climate stagnant was theabsence of Wall Street, stopped for the Juneteenth Independence Day holiday which commemorates the liberation of African American slaves, while some company forecasts clearly disappointed the market. Finally, the absence of signs of new stimulus at theChinese economy, while Goldman Sachs cut the celestial empire's growth forecasts. After the mid-month meetings of the Fed and the ECB, the choices of the British and Swiss central banks are finally expected this Thursday.
In this context Business Square loses 0,39% and is the best, despite the coupon detachment for four blue chips which weighs 0,23% on the index. The banks are mainly supporting the list, but it also shines Telecom (+1,39%) on the day in which the board began examining the new offers of Kkr and the Cpd-Macquarie consortium on the network. When asked about the role of the telephone giant's main shareholder, Minister Giorgetti replied that “Vivendi is a market player. Let's see, there are some proposals on the table. The board of directors will decide”.
The black jersey of the day goes to Paris, -1,01%, with luxury weighed down by Chinese prospects. It follows Frankfurt, -0,96%, back from its new highs updated in recent days. Ballasting the Dax is laboratory equipment maker Sartorius (-15,74%), which last Friday cut its revenue and margin forecasts for 2023. They are at a fractional loss Zurich -0,72% London -0,7% Madrid -0,69% and Amsterdam -0,48%.
Cautious pound waiting for the BoE
On the foreign exchange market moves in tune with the dollar, while the pound is cautious, remaining around 14-month highs against the greenback in anticipation of a further rate hike by the BoE. Money markets see a 75% chance that the British bank will opt for a 25bp hike and a 25% chance of a 50bp hike.
THEeuro-dollar however, it changes around 1,092.
From the front ECB i toni they rather remain aggressive and Isabel Schnabel, a member of the Eurotower board of directors argues that when it comes to monetary policy, it is better to do too much than to do too little. “The risks of a de-anchoring of inflation expectations and a weaker monetary policy transmission suggest that there is a limit to how long inflation can still remain above our 2% target. We must therefore continue to raise interest rates until we have convincing evidence that developments in underlying inflation are consistent with a return of headline inflation to our medium-term target of 2% in a sustained and timely manner”.
Oil falls on forecasts for China
Among raw materials, the Petroleum, probably alarmed by Goldman Sachs' forecasts on China. The bank's analysts have in fact cut Beijing's GDP estimates for this year from 6% to 5,4%, and for 2024 from 4,6% to 4,5%. However, it is true that output from Chinese refineries increased in May to a second-highest level on record and helped bolster last week's gains. In addition, US energy firms reduced the number of oil and natural gas rigs for the seventh consecutive week, for the first time since July 2020.
In any case, Brent is currently losing 0,8% and is trading at around 76 dollars a barrel.
Piazza Affari lively banks, down Pirelli
Utilities are weak on the Ftse Mib today, even if three of the four blue chips that paid the dividend belong to the sector: they are Hera -2,01% Snam E-2,03 Terna -0,71. The fourth is instead Post .
In the rest of the list there was lively interest in banks, in the never dormant possibility of new mergers in the sector. Thus they mark considerable progress Bper +3%, UniCredit +2,27%, Monte paschi + 1,53% Understanding + 0,91% Bpm bank + 0,7%.
Among the biggest declines of the day are Recordati -1,9% Interpump -1,98% Diasorin -1,78%.
It is weak Pirelli, -1,06%, after the exercise of golden power by the government which established a series of limitations on the possible influence of the main Chinese partner, Sinochem, on Bicocca.
Spreads and rates on the rise
The secondary market for government bonds closes in the red. The spread between 153-year BTPs and Bunds with the same duration, it rises to 2,95 basis points (+4,04%) with rates rising to +2,51% and +XNUMX% respectively.
