La volatility which characterized the current week of financial markets it reared its head again today in Europe, which closed a session that started with great sprint in contrast, thanks to decreasing inflation in Germany and France. What slowed enthusiasm was the negative start of Wall Street, which is currently moving downwards (Dj -0,8%) after the publication of the first quarter results of giants such as Jp Morgan (which dropped more than 5%), Wells Fargo, Citi, BlackRock, despite the results going beyond analysts' expectations.
On the other hand, raw materials and the dollar are flying.
Eurozone in no particular order, London toned with the oil majors
Business Square it appreciated by 0,15% to 33.764 basis points, with the banks closing mixed, after an attempted rebound. Instead, energy stocks such as Saipem + 3,92% Enel +2,91% ed Eni + 2,69%.
The picture is mixed in the rest of the eurozone: Madrid + 0,35% Amsterdam -0,06% Paris -0,24% Frankfurt -0,1%.
Off the block it stands out London +0,94%, also thanks to the growth of the oil majors.
Furthermore, the tepid British economy may be close to emerging from recession as output grew for the second consecutive month in February, and the January figure was revised upwards. GDP rose 0,1% in monthly terms in February, while the January reading was revised to 0,3%, from 0,2% previously.
Raw materials and the dollar in orbit
Even today, they act as a magnet for purchases raw material and the dollar.gold travels above 2400 dollars an ounce for the first time, silver does not want to be outdone and is approaching 30 dollars, the Petroleum it turbocharges and gains around 3%, with Brent above 92 dollars, also because there is always a Middle East alarm. He also rears up gas, with prices in Amsterdam approaching 31 euros per megawatt hour. The super dollar shows no signs of deflating: the euro loses almost 1% due to an exchange rate around 1,062 and is not doing much better GBP, while the yen recovers slightly from the new lows reached in recent days. According to the FT, the greenback is set to close the strongest week in two years.
What drives the US currency are the expectations of a postponement of a rate cut until September by the Federal Reserve, due to inflation that is still too strong. The geopolitical framework and the trend in oil prices do the rest.
The central banking hub
What keeps investors on their toes, it must be remembered, is largely the attitude of the companies banks stations, with the Fed and the ECB appearing destined to separate agendas after yesterday Frankfurt, leaving rates unchanged, made it clear that it is ready to move independently from Washington.
To strengthen the odds that Christine Lagarde monetary policy is already easing in the month of June according to the data released today on March inflation in some important countries. In Germany the final reading sees prices slowing to +2,2% per year, from +2,5% in February; in France it went to 2,3% from 3% the month before.
In Spain However, the rise in prices starts again, at 3,2%, but the cause could be attributed to the increase in VAT on energy.
According to Bloomberg, market bets now indicate the prospect of a European cut of a quarter of a point in June, while for the Fed the horizons have moved to September and for the Bank of England to August.
Piazza Affari holds up thanks to energetics and Amplifon
Amplifon, +3,42%, is among the best blue chips of Business Square today, after losses in recent days following an Antitrust investigation. The stock finds support in an analysis by Equita which raised the target price to 33 from 29 euros thanks to the good growth rates expected for the first quarter and those to come and possible M&A opportunities.
The energetic ones take the lion's share and together with Saipem, Enel ed Eni, are gaining ground again A2a + 2,52% Snam + 2,17% Erg + 2,02% Terna +1,3%. Find your charm again Leonardo +1,89% in a world that doesn't seem to have any desire to silence the guns.
The loss count starts from Interpump, -5,63%, which had moved higher in recent sessions.
They retreat stellantis -3,27% stm -1,05%.
Banks are mixed, after yesterday's losses.
Notably, they are still in the red Mount Paschi -0,97% and Bpm bank -1,2%. The big Entente e Unicredit they grabbed a rebound, but limited their gains to 0,24% and 0,22% respectively. The bank led by Andrea Orcel yesterday obtained the green light from the ECB for the 3,1 billion buyback tranche. The CEO, who was mandate renewed, set out to help the bank reach new records.
Declining spreads and rates
Purchases of eurozone government bonds are back, in the greater belief that the ECB is approaching monetary easing. The spread between 139-year BTPs and Bunds of the same duration it narrows slightly to 3,73 basis points and the yields fall to 2,34% and XNUMX% respectively.
