I European stock markets close in deep red, with investors preferring to cash out again after theoutcome of the European elections and the advance of the right which fuels many political and geopolitical uncertainties.
L'avvio sluggish on Wall Street did not provide great support to the squares of the Old Continent, while waiting for the Jerome Powell press conference, tomorrow at the end of the Federal Reserve meeting and the release of new inflation data. However, stock markets are trading at very high levels and yesterday, despite the volatility, S&P 500 and Nasdaq closed at historic highs. We will see in the next few hours whether the guilty verdict for Hunter Biden, "first son", who risks up to 25 years in prison for purchasing a gun despite drug addiction, will have an effect on the US market.
Among the individual Stars and Stripes titles he flies Apple , +5,35%, after a quiet start and yesterday's presentation of theintegration of artificial intelligence in new products.
Black Wednesday in Europe, Milan is below 34 thousand points
European stock markets end another difficult session: Business Square, with its third consecutive decline, is the worst with a drop of 1,93% which brings the Ftse Mib below 34 thousand basis points (33.874), especially due to sales on banks and utilities.
The losses of financial securities are also felt at Madrid -1,56%, while the damage is more limited to Frankfurt -0,7% and Amsterdam -0,37%.
London drops 1,01%, looking above all at the increase in unemployment, combined with higher-than-expected wage growth.
Paris retreats with the elections, while the spread widens further
Paris it also loses more than one percentage point today (-1,33%), while the political picture is becoming more complicated after President Emmanuel Macron dissolved parliament and called national elections. Surprisingly today, Le Figaro revealed that the Républicains, heirs of the Gaullists, have made an agreement with the party of Marine Le Pen and Jordan Bardella.
Macron has said he will not resign in the face of any verdict from the citizens, called to vote on June 30 and July 7.
The effects of uncertainty affect government bonds in any case, with the spread between Oat and ten-year Bund, which rises for the second day by almost 8% (to 61 basis points) and the yield of the French bond at 3,21%.
Btp-Bund spread at 150 points, then lowered
The Italian paper is not doing any better and is the first to pay the penalty in a less cohesive European context due to the enormous weight of public debt.
Lo spread between 10-year BTPs and Bunds of the same duration today widens further beyond 140 basis points (after having almost reached 150) and the rate consolidates above 4% (to 4,02%), against 2,6% for the bond German.
From the ECB front, there is the "hawkish" attitude of Eurotower's chief economist, according to whom inflationary pressures in the euro area remain strong enough to induce the Central Bank to keep interest rates high for longer than expected to limit growth economical.
The dollar strengthens on the eve of the Fed
Many market hopes for rapid monetary easing on both sides of the Atlantic have been dashed in recent months. The ECB implemented a "cut" of 25 basis points last week, while the American central bank will almost certainly communicate an unchanged cost of money tomorrow. The market mood will rather depend on the updated economic projections, the “dot plot”, together with the trend in consumer prices in the month of May.
At the moment the dollar awaits the outcome of the meeting with a tonic trend and is further appreciated against theeuro in area 1,072.
The greenback also strengthens against the yen (157,37), taking into account that the central bank of Japan will also define its monetary policy on Friday.
Piazza Affari, storm of sales on the banks
A firestorm of selling hit Italian banks today, with investors turning to realizations following large gains in stocks in the recent past, supported by high interest rates.
On the Ftse Mib they are therefore in deep red Ps, -4,93% and Banco bpm -4,35%, on which Morgan Stanley reduced the recommendation to “Equal-weight” from “Overweight”, but raised the target price to 7,7 euros from 7,1 euros.
The session was also difficult for Unicredit -3,75% Bper -3,61% Understanding -2,56%.
In the industry it stands out negatively Leonardo -4,47%. In the oil sector the worst stock is Saipem -4,13%. The utilities go back starting from Hera, -3,27%, after the good performance on the eve.
At the end of the day there were only two positive stocks on the main list: Brunello Cucinelli (+ 0,92%) and Amplifon (+ 0,6%).
