The price of eggs has finally dropped below $3, gasoline is also under control but a Jerome Powell not enough: theinflation, the Fed chairman tells lawmakers in Washington, is still too high. And it will take further interventions, probably more than one, to reach the level desired by the vast majority of Fed members by the end of the year. The determination of the US central bank has dealt a severe blow to the most bought securities in recent weeks, from Tesla a Nvidia. Precisely the effect desired by the central bank, worried about the euphoria around tech stocks. Get air of rate increase just about everywhere: today the discounted increase in British rates is scheduled, perhaps even half a point, while the rise from the Swiss franc anticipates the analogous choice of the Swiss gnomes. Surprisingly, Lula's Brazil did not cut the cost of borrowing today to 13,75%. Finally, Turkey is expected to proceed with a sharp hike, the first after two years.
The attitude of central banks largely explains the cautiousness of the markets. The bags of Europe open low: Milan (-1,14%), as well as Frankfurt (-1,02%), Paris (-1,31%), Madrid (-1,59%) And London (-1,25%).
IERI (Yesterday) il FtseMib it closed just above parity, the best performance of the Old Continent, thanks to the boost from the banking sector. The testimonies of the various CEOs, from Andrea Orcel of Unicredit to Giuseppe Castagna of Bpm at the meetings promoted by Mediobanca, have favored the shopping spree.
Great mess of the majority on the Mes
The great mess of the ratification of the Mes. In a letter sent to the Foreign Affairs Committee of the Chamber, the head of the Economy Minister's Cabinet wrote that there are no risks in ratification of the Treaty. On the contrary. Italy would benefit from the evaluation of rating agencies and international reputation. Thus the minister Giancarlo Giorgetti has finally broken the diktat of the sovereign right (but also of the Five Stars) which paralyzes the approval of the treaty. But it immediately clicked Giorgia Meloni's reaction and Matteo Salvini.
The governor of the German central bank, Joachim Nagel, said that inflation is "like a greedy beast" and also "stubborn". To bring it back down will require a "long and stubborn struggle".
In the Eurozone. Bunds at 2,43%. BTPs at 4,05%, spread 162 basis points. A rate hike in September by the ECB, after the expected tightening in July, is uncertain and will depend on a new assessment of economic developments, said Peter Kazimir, member of the Governing Council of the ECB. The euro reached a month-and-a-half high, cross at 1,099.
On Wall Street, Tesla and Nvidia are holding back
The US markets closed in the red for the third consecutive session after Powell's words. Who expected the closing speech of the Federal Reserve chairman from the House hearing restrictive monetary policy, was disappointed. The Nasdaq lost 1,2%, theS & P 500 0,5%.
In sharp decline Tesla -5,5% after the rating cut by Barclays. Sales too Nvidia -3%.
According to Goldman Sachs, investors should seriously consider the idea of consolidating the rally of the S&P 500 (+16% in the last three months) to protect themselves from the risks related to the probable recession. He cited several indicators in this regard, including an excess of bullish positions on options, the strong rally seen in a very short period of time, high fundamental valuations, overly optimistic growth expectations.
The 3,72-year Treasury Note trades at XNUMX%, little moved since yesterday.
In red the Asian stock exchanges. Closed China
The markets of China and Taiwan are closed today. The stock market of Japan is little move, the Nikkei marks a slight decline. The index goes up Kospi of Seoul, +0,5%.
falls theS & P ASX 200 of Sydney, -1,5%. The Australian Parliament is expected to decide next month, on a proposal from the Treasury Secretary, on the leadership of the central bank. Current Governor Philip Lowe's term ends at the end of the summer.
The Fed's rigor led to the ninth drop in ten sessions and the price of gold, to its lowest since March at 1929 dollars an ounce.
The big names return to betting on Bitcoin
Bitcoin opens up 1,5% from yesterday's +6% to $33. Price on the highs since mid-April. The initiatives of big names in global finance are restoring credibility to the crypto world, after the many scandals involving characters practically unknown before the boom (eg Sam Bankman-Fried). BlackRock applied for its own spot Bitcoin ETF on June 15 and Blackrock is the world's largest asset manager with over 10 trillion assets. WisdomTree, another asset management giant, has asked the SEC (again) for authorization to list its "WisdomTree Bitcoin Trust" on the US stock exchange.
Gas, the China/Qatar axis is born
Weak the Petroleum at $76,80 a barrel. Powell's hearing had little effect on yesterday's movement. It is always China, with its weak recovery, that holds the scene. Meanwhile, the American Petroleum Institute said oil inventories fell by about 1,2 million barrels in the week ending June 16.
Price of very volatile gas: nine of the last ten sessions ended with daily variations of more than 3% in one direction or the other. On the subject, it should be noted that Qatar is expected to sign an agreement with a Chinese state-owned company for a 27-year contract that will allow Beijing to purchase 4 million metric tons of liquefied natural gas (LNG) a year, Reuters reported.
Banco Bpm/ Nexi, it's about money. D day for Tim
Bpm bank (-1%) is looking for a partner for its e-money business but excludes a sale, said group CEO Giuseppe Castagna on the sidelines of the Mediobanca event. nexi (-0,62%) should be in pole position in the tender for the acquisition of a share in the merchant acquiring area of Banco Bpm. Also in the running are the F2i fund and Worldonline.
The Board of Team (-1,46%) today should decide to open an exclusive negotiation of about six weeks with the Kkr fund. The parties will try to find a compromise on the valuations of the telephone group's fixed network. Reuters spoke about it last night. Bloomberg also reports that the telephony company has restarted the search process for a person interested in taking over a minority stake in the division that offers services to companies.
Thyssenkrupp Nucera, joint venture for hydrogen technologies between Industries From Nora (-1,26%) and the German Thyssenkrupp, should be valued at over 3 billion euros in the IPO.
