In the middle of the session the European stock markets are mixed, with that of Milan rising above 34.000 points. It's a typical session."wait and see” for European stock exchanges but also for the USA: in the Old Continent the special surveillance is naturally the France e Investors are awaiting developments on the composition of a government that is able to meet fiscal and economic commitments. Overseas, however, we wait Jerome Powell who in the afternoon will speak to the US Senate (tomorrow in the House) about how the economy is moving and consequently how monetary policy could be moved.
So the morning diary at Piazza Affari is a see-saw: an uncertain start, some profit-taking and then upwards again, with the Fitse Mib returning above 34.000 points halfway through the session. At 12.00 it was at 34.103, up by 0,17%. At the same time the FTSE Italia All Share was up 0,19%. A plus sign also for the FTSE Italia Mid Cap (+0,12%) and for the FTSE Italia Star (+0,01%).
This is not the case in the other European stock exchanges, with Frankfurt losing 0,39%, Madrid where the Ibex 35 is at -0,41% and the specially monitored Cac 40 in Paris losing 0,39%. The Amsterdam stock market was also positive (+0,39%), while outside the EU London recorded +0,22%.
Spreads under control: Btp/bund remains around 137 bps
In an uncertain situation like that of the French government, the spotlight is on the trend of spreads and government yields because these could be the indicator of investor disaffection with that state. Yet this morning the situation is still under control. The spread BTP/Bund it remains around 137 with the yield of the 10-year BTP at 3,91%, the yield of the French Oat is at 3,15% and its differential with the German analogue is stuck at 61 basis points.
The euro is stable against the dollar and after the statements of the governor of the Bank of Italy and member of the ECB, Fabio Panetta, according to which Frankfurt can continue to gradually reduce interest rates by adapting their level to the disinflation path, but will have to be ready to respond to any new shocks. “From here on, disinflation can be completed by gradually adjusting the level of official rates to the decline in actual and expected inflation, if macroeconomic developments confirm the current forecasting framework,” said Panetta. “But we will have to be ready to respond quickly to new shocks that could move us away, up or down, from that trajectory,” she added. The governor of the Bank of Italy, at the ABI annual meeting, also underlined that the solidity of the banks is an element of strength of the production system. Now we need to accompany the recovery in demand because the Italian and European economy is growing at a moderate pace. The president of the Abi Antonio Patuelli instead, he underlined the importance of cutting the tax burden on savings and asked for a simplification of the rules, recalling that in 2023 there were several thousand regulations addressed to banks.
In Milan the best is Prysmian. Leonardo and luxury stocks also did well
Worth noting in Piazza Affari was the excellent performance of Prysmian need Leonardo, but they are also on the rise thanks to the progress of Iveco and luxury stocks such as Moncler and Brunello Cucinelli. On the other hand, Generali, Fineco Bank (-1,13%) and Azimut (-0,57%) fell
Prysmian: The stock jumped by 4,85% to 60,52 euros in the middle of the session on Piazza Affari at the session highs, approaching the absolute record of May at 61,06 euros. Citi has opened a 30-day positive catalyst watch on Prysmian stock and Jefferies promotes the action. With the publication of the second quarter of 2024 results on August 1st, Citi sees the concrete possibility of an upward revision of the guidance for 2024.
Leonardo +1% Italy aims to spend around 7,5 billion euros over the next 11 years on 24 new Eurofighter jets, according to a Defense Ministry document seen by Reuters. The purchase will lead to the renewal of the Italian air force fleet, given the necessary dismantling of the old Eurofighter and Tornado jets, at a time when NATO members are increasing defense spending in light of growing geopolitical uncertainty. The Eurofighter Typhoon supersonic twin-engine jets are built by a German, British, Italian and Spanish consortium, made up of Airbus, BAE Systems and Leonardo. Since the order will be placed by the Italian Air Force, Leonardo will have the role of prime contractor.
In decline, however, Generali (-1,21% to 23,64 euros). Jefferies analysts have reduced the target price on the insurance company to 22 euros; the experts confirmed the indication to keep the shares in the portfolio. Yesterday, when the markets were open, rumors circulated from Insurance Insider about a potential interest in the Hiscox company by Generali and Sampo. Hiscox is an insurance and reinsurance group with operational headquarters in Bermuda and is listed on the London Stock Exchange. Hiscox focuses on non-life insurance in the commercial and retail branches with a focus on SMEs and a geographical presence mainly in North America and the UK and overall operates in 14 countries including Europe and Asia with over 3k employees. In 2023, Hiscox reported premium income of around US$4.5bn, a solvency ratio of 212%.
Eni recorded a decline of 0,41% to 14,244 euros. The oil giant has announced a new discovery in the Yopaat-1 EXP exploration well, in Mexico. Preliminary estimates indicate a potential discovery of approximately 300-400 million barrels equivalent of oil and associated gas in place.
stellantis It will expand its lineup of affordable hybrid vehicles in Europe to 2026 models by 36 to meet growing demand for this type of engine as an alternative to gasoline-powered cars and electric vehicles. The Italian-French carmaker, born from the 2021 merger between PSA and Fiat Chrysler, said in a statement that this year it will offer 30 hybrid models for nine of its 14 brands, including Fiat, Peugeot, Jeep and Alfa Romeo, and will launch six more over the next two years. Stellantis, which did not say how many hybrid models are already on sale, said it is responding to the rapid increase in hybrid orders from customers in Europe. The company added that sales of this type of vehicle in the region rose by 41% in the first six months of this year.
