European stock exchanges fractionally rising in the last session of the week, while the UK elections, overwhelmingly defeated by Labour, dominate the scene. But investors won't have time to catch their breath, because the electoral events don't end here. In fact, the run-off of the legislative elections in France, a crucial vote for the future of the country and for European stability. As a natural consequence, the spotlight is on the stock exchanges of the countries called to the polls: London, awaiting Keir Starmer's first speech as prime minister, gains 0,14%, while Paris rises by 0,38%, despite the pre-election controversies. It gets even better Frankfurt (+0,85%), while Amsterdam it is up 0,4%. The only price list that goes against the trend is Madrid (-0,1%), with Milano which adds to the general mood and at mid-day it marks +0,3% at 34.208 basis points.
On the macro front, the data on retail sales which, according to Eurostat, increased by 0,1% in May in the euro area and in the EU. In April they had fallen by 0,2% in both areas. Compared to May 2023, the increase is +0,3% for the euro area and +0,6% for the EU. Copycat trend in Italy, where according to Istat, retail sales rose by 0,1% compared to a year earlier. Meanwhile, the data of the German production which in May marked a decline of 2,5% and 6,7% on an annual basis. While in France industrial production in April it was revised to +0,5% from the previous +0,4%. The numbers on the dynamics of the are expected in the afternoon US labor market, among the main indicators that the Federal Reserve looks at to adjust the cost of money. Wall Street analysts are betting on the creation of 190.000 new jobs last month, down sharply from 272.000 in May, with an unemployment rate stable at 4%.
Construction sector stocks are growing in London: here's why
On the London Stock Exchange, the stocks of the companies stand out companies active in the construction sector. The house buildersIn fact, they gain thanks to Labor's victory in the elections. This happens because investors focus on projects of the party led by Starmer in favor ofpublic housing. The main beneficiary of the purchases, therefore, is the title Persimonn which in the morning rose by 4,1% to 1.491 pence and is in first place among the components of the Ftse 100 index, closely followed by Vistry (+ 3,8%) and Barratt Developments (+2,8%), as well as from Taylor Wimpey (+2,4%). Analysts say these are the companies that will benefit most from Labour's plans for an increase in affordable housing and urban planning reform.
St runs along Piazza Affari, Amplifon collapses
At the top of the Ftse Mib there is stmicroelectronics, which gained 2,9% after Samsung Electronics forecast a more than 15-fold increase in second-quarter operating profit as a recovery in semiconductor prices driven by the artificial intelligence boom improved results from low level from a year ago. Energetics are positive with Saipem (+1,33%) ed Enel (+ 0,66%).
Purchases also reward Finecobank (+1,33%) and fashion: Brunello Cucinelli (+ 1,24%), Moncler (+ 1,06%).
However, the rally in the banking sector, which began after Unipol's move up, stops Bper (-0,78%). Profit-taking affects the stocks that have gained the most in previous sessions: Pop Sondrio (-1,65%) Ps (-1,64%), Bpm bank (-0,51%). Bucking Unicredit (+0,23%). In an interview given to La Sicilia, CEO Andrea Orcel said that the bank is willing to evaluate possible M&A opportunities, at favorable economic conditions, but it is not an obligatory choice. “If there are shareholders willing to sell at favorable economic conditions, we will evaluate the opportunities. Conversely, if we do not find targets in line with our strategic objectives, we will continue to buy back our shares", added the manager.
Instead, it is placed at the bottom of the blue chip list Amplifon, which fell by 5,08% with investors selling the stock en masse ahead of the July 30 results. Equita, in light of an expected second quarter that is not brilliant for the European market, has cut its organic estimates for the quarter and the entire 2024 financial year. “We think that Amplifon may have recorded organic growth similar to that of the first quarter and we have therefore reduced our estimate from +7,9% to +5,5%. For the year, we reduce the revenue estimate by 1,2% to 2.444 billion,” writes the broker who confirms the target of 34 euros per share.
Spreads and yields fall
Continue to go down spread between BTP and Bund which stands at 138 basis points from 142 on Thursday. The spread between Oat and the German ten-year bond is also decreasing, currently at 63 basis points.
On the secondary however, the return of the benchmark 3,94-year BTP falls to 4% compared to 10% at the previous closing, that of the 3,19-year Oat is down to 2,55%, that of the Bund is at XNUMX%.
The other markets
The exchange rate on the currency euro/dollar it is substantially stable at 1,08, while it seems not to care about the electoral result GBP which stands at 1,18 euros. Also stable Petroleum, with Brent and WTI at 87,38 and 83,92 dollars per barrel respectively.
but where is the stock exchange in Milan???