Political uncertainty curbs risk appetite in Europe and most Bags today closes the third consecutive session in decline, while Moody's warns: a period of instability in Paris could damage French banks. A perspective that makes you tremble cac 40 -1,03%; Milan it aligns by losing 1,06% (for a closing at 33.186 basis points). Among other things, both main indices are affected by the collapse of stellantis (-4,13%) and the jump in the spread.
In the rest of the continent they are negative Madrid -0,73% and London -0,55%, while they closed slightly against the trend Frankfurt +0,25% and Amsterdam + 0,21%.
Volatile Wall Street
The western winds today did not sweep away the dark thoughts about the upcoming electoral deadlines and the start of the wall street, who also looked for timid hints of optimism, in the day's macroeconomic data in line with expectations (+1,4% on GDP for the first quarter; PCE 'core' inflation in the quarter revised to 3,7%). Tomorrow we will focus on the monthly PCE data.
In the stock market, however, it is still a letter for chip companies linked to artificial intelligence. Goes down Nvidia (-2%) while Micron drops by more than 6%, after disappointing quarterly data for those expecting a new industrial revolution. Other mega caps are doing well. Also noteworthy is the collapse of Levi Strauss (-16,5%) which published its second quarter accounts, which closed with revenues of 1,4 billion dollars, up 8% on an annual basis, but below analysts' expectations.
In the political sphere, tonight there will be the first face-to-face meeting between the candidates for the White House in the November elections, President Joe Biden and former President Donald Trump.
Euro slightly recovering
On the currency market it is yen it remains at its lowest level for almost 40 years against the dollar, for an exchange rate above 160.
THEeuro recovers ground slightly and finds a cross around 1,07 and also the GBP appears more toned, but the volatility is destined to last with the French called to vote on Sunday for the first round (second round on 7 July) and the British who will have to express their opinion on Thursday. The uncertain outcome is holding investors back from making big bets.
Piazza Affari skids with Campari
In the varied European picture, Piazza Affari occupies one of the lowest positions, while in the last two hours of trading there was the first strike on the Italian stock exchange, which does not appear to have created any disruption.
The leader of the reductions is stellantis, downgraded by Equita to 'hold' due to the "cutting of estimates below consensus and the weak news flow that we expect shortly".
Skid campari, -3,66%, due to the news that the Milan prosecutor's office has opened an investigation for failure to return tax returns against the company Lagfin, a holding and safe based in Luxembourg. The risk is a fine of more than one billion, although last night the queen of liquor company announced that none of the companies in the group are being investigated and that therefore no impact is expected for the listed company.
Lose altitude Recordati -2,54%.
Banks are negative, in particular Understanding -1,76% and Mount Paschi -2,07%.
Luxury is contrasted: it stands out on the Ftse Mib Brunello Cucinelli +3,91%, a stock on which Stifel suggests “Buy” from “Hold”. Instead, step back Moncler -2,16% and, outside the main basket, it plummets Ferragamo (-12,66%), after UBS cut its target price to 9 euros from 9,5 euros previously.
Spread rising; BTP yield over 4%
Risk aversion penalizes the Italian paper. It goes up today spread between 10-year BTPs and Bunds of the same duration, reaching 157 basis points. Yields are also growing, in particular those of the Italian stock which goes above 4% (4,02%).
The session is one to forget even for the French titles, with the spread rising to 71 basis points (+6,16% compared to yesterday's closing) and the ten-year Oat rate at 3,16%.