Taurus is struggling to free itself from the reins of inflation and political uncertainty, and so it is today too bags europee they close moderately fall e Wall Street proceed to mista, awaiting the PCE data on US consumer prices, the measure preferred by the Federal Reserve.
The news that prices have recovered in Canada and Australia does not help optimism, while in Europe the first round of the French elections is approaching, with the right still having a large lead in the polls. A scenario to which the words of the governor of Bank of Italy Fabio Panetta, which warns: among the main risks of the blockade is “increasing political uncertainty within countries”.
Meanwhile, top-level appointments in the EU make Italy nervous, which has remained out of the games which now seem to be over. It should be added, for the record, that for the euro zone, Bulgaria and Romania have failed the economic tests to join the single currency.
On the currency market it is yen falls to its lowest level since 1986.
Nervous Europe; Fedex flies to Wall Street, Nvidia in the red
European markets express their nervousness with fractional losses, a sign that investors prefer to raise cash ahead of the end of the month.
Business Square it retreats by 0,49% to 33.541 basis points, with sales and purchases spread across all sectors.
Paris loses 0,69%, Madrid 0,8%, Amsterdam 0,38%. Frankfurt is flat, while London loses 0,27%.
Wall Street (which Europe always looks at in the second part of the session), even today it moves mixed in the middle of the day. The Nasdaq rises by 0,13% thanks to purchases on some mega tech companies, but Nvidia, after yesterday's strong recovery it is once again in the red and is currently losing 2,1%. The technology index soars Rivian, with a gain close to 30%, after the decision to Volkswagen (-2,11% in Frankfurt) by invest up to five billion dollars as part of a joint venture with the electric vehicle manufacturer.
on the S & P 500 Fedex stands out, +16%, which showed solid quarterly results.
Currency, yen at 38 year low, Australian dollar rises
Of particular interest today is the currency market, where the Australian dollar gain positions on the american dollar in the prospect of a possible increase in rates due to the acceleration of inflation, which in May reached 4%, a six-month high. The news has given a boost to the currency, which is currently trading slightly ahead of the greenback.
This is despite the dollar index rising about 0,4% against the major currencies. A trend that primarily penalizes the yen, which trades above the Piave threshold of 160, a limit beyond which the Japanese authorities could intervene. The Japanese currency slipped to 160,63, its highest level since December 1986.
The single currency is also falling against the dollar and is trading around 1,067, after statements from some European bankers, which seemed accommodating. The chief economist of the ECB Philip Lane, told Finnish broadcaster MTV that Frankfurt will continue to cut interest rates if price pressures ease as expected. However, the pace of monetary policy easing could slow down in the event of unpleasant surprises.
For the Italian governor, Panetta, "the current macroeconomic framework is consistent with a normalization of the monetary orientation".
“The ECB duly started this process a few weeks ago and, in the baseline scenario, will continue it gradually and smoothly.”
Pressure on government bonds
The session does not appear particularly favorable to government bonds on both sides of the Atlantic.
In Use T-Bonds they see prices falling and yields rising, in a week full of primary issues.
Italian bonds are also under pressure and the 4-year is close to 3,98% (XNUMX%), for one spread with the 10-year Bund rising at 153 basis points. The Bund yield also rose (+2,45%), while French bonds closed a positive session with a spread below 70 points.
Piazza Affari, price list between Saipem's gains and Tenaris' losses
The main list of Business Square also opens today with the positive performance of Saipem +2,37% (on which Jefferies raised the target price to 3 euros from 2,75 euros) and the negative one of another oil stock such as Tenaris -2,22%.
This contrasting ending also characterizes the banks: they go up Bper +1,12% and Understanding +0,28%, move back Monte paschi -2,18%.
Among the biggest increases of the day there are also Recordati +0,45% ed Erg +0,42%; among the biggest declines Ferrari -1,79% and Interpump -1,44%.
Among the minor titles it stands out Racing Force +5,14% (to 4,09 euros per share) after the company completed the capital increase operation, placing new shares for a total of 7,5 million euros at the price of 4,43 euros per share. The stock thus moved towards the placement price, while Midcap raised the target price to 6,4 euros from 6,2 with a "Buy" rating.