I European lists closed today's session lower, with investors fumbling this week due to the unknown factor on the agreement to raise the US debt ceiling, after yesterday the meeting between President Joe Biden and the speaker of the House, Kevin McCarthy, did not produce great results even if the negotiations continue. He's also declining optimism about a Fed rate cut later this year.
The May flash estimate on manufacturing and services also contributes to fueling the uncertainty today, with the former disappointing on both sides of the Atlantic. The boot weak di Wall Street complete the picture.
Business Square closes the session with a loss of 0,5%, at 27.174 basis points, weighed down by the shares of the luxury after a report by Deutsche Bank which recommends reducing exposure to securities in this area. It doesn't help that people are starting to talk about Covid again in China.
Sales in the sector are especially striking Paris, -1,33%, where the red of the big names stands out. The French square also suffers from the drop in Vivendi, -3,26%, drowned by the news that the controlling shareholder Vincent Bolloré has sold shares in the group.
Losses are more modest a Frankfurt -0,46% Madrid -0,39% Amsterdam -0,21% London -0,11%.
Euros in retreat
Sul foreign exchange market the retreat of the euro against the dollar continues, fueled today by the signs of weakness in European industry that arrived with the flash estimate of the PMI indices in May. The manufacturing PMI drops to 44,6 points and that of services to 55,9. The composite index continues to expand, above 50 points, but drops to 53,3 from 54,1.
The US manufacturing PMI also disappoints in the preliminary reading, at 48,5 points from 50,2 points in April (and expected at 50). Services, on the other hand, confirmed their expansion to 55,1 points from 53,6 in April (expected 52,6).
In this context theeuro it fell against the greenback by 0,34%, to 1,076.
Oil on the rise and gas below 30 euros. Gazprom profit down more than 40%
Among the raw materials, the Petroleum, with Brent up 1,4% above $77 a barrel and WTI up 1,6% to $73,22 a barrel.
Il gas on the Amsterdam square it drops by 1,64 to 29,225 euros per Mwh, while the effects of the war are felt on the 2022 budget of Gazprom. The Russian energy giant reported a net profit down 41,4% from a year ago to 14,2 billion euros, feeling the brunt of Western-imposed sanctions over its invasion of Ukraine, resulting in a decline of supplies. Gazprom's board has not recommended the distribution of dividends for 2022.
Piazza Affari, Saipem and Mps do well
Indifferent to the stagnant general climate Monte Paschi Bank these days it is experiencing an effervescent season and it appreciates again today by 3,15%, in a banking sector that was quite neglected in this session.
At the bottom of the list are the luxury titles: Moncler sinks -5,41 followed by Ferrari -3,34% and among the mid caps they are losing ground cucinelli -3,92% Ferragamo -1,99% Tod’s -1,4%.
On the Ftse Mib red is on for Interpump -2,59% Amplifon -2,62% Leonardo -1,61%.
The money poured into oil stocks instead: Saipem + 3,59% Eni + 0,71% Tenaris + 1,44% Saras +2,92% the latter thanks to the return of growth in the oil refining margin in May after the decline in April, as highlighted by Bestinver in the daily.
Among the football titles we appreciate the Juventus, +2,52%, after the penalty of 10 points, which two days before the end of the championship establishes a probable exclusion of the Turin club from the Champions League. Well there too Lazio, +2,73% which will be instead of the match.
Balanced spreads
Lo spread between 186-year BTPs and Bunds of equal duration continues to move within a narrow range and closes at 0,34 basis points (+4,31%). However, the expectation of further rate hikes by the ECB (two are expected by the summer) are weighing on yields, which rise today to +2,46% and +XNUMX% respectively.
Meanwhile, the issuance of Italian paper continues and the Ministry of the Economy and Finance has communicated the results of the issue of the first tranche of the new 15-year BTP-i – indexed to inflation in the euro area, with the exclusion of tobacco base. The bond matures on May 15, 2039, with dividend entitlement on May 15, 2023 and an annual rate of 2,4%, paid in two six-monthly coupons. The settlement of the operation is set for May 30th. The bond was placed at a price of 99,674, corresponding to a gross annual yield on issue of 2,439%.