The European stock exchanges are confident about the negotiations between Ukraine and Russia. The talks between the delegations via video conference ended in the early afternoon and will resume tomorrow, after a "technical break". However, what gives hope to the price lists are the words of the deputy head of President Zelensky's office, Ihor Zhovkva, according to whom Moscow's position is more constructive than it was previously. "Instead of giving us an ultimatum or red lines or asking Ukraine to capitulate, they now seem to be starting constructive negotiations," Zhovkva told Radio 4's Today, according to BBC reports.
Meanwhile in Rome, the meeting between the US national security adviser, Jake Sullivan, and the head of the Foreign Affairs Committee of the Politburo of the Communist Party of China, Yang Jechi, is still underway. It should be noted that both China and Russia have denied the news published by the Financial Times of a request for "military assistance" made by Moscow to Beijing.
The European stock exchanges are running
In this context, the European stock exchanges start the week as they closed it: under the banner of increases. The best is Frankfurt, which closes the session with a +2,3%. Paris (+1,9%) and Madrid (+1,2%) are also in the running, while outside the EU London gained 0,6%.
The general good humor is also contagious Business Square which, after +0.68% on Friday, closed the first weekly session with an increase of 1,67%, reaching 23.426 points.
The Moscow Stock Exchange will remain closed for the whole week. Finance Minister Anton Siluanov said today: Russia is ready to pay its public debt in rubles at the exchange rate of the country's central bank.
Wall Street is mixed
On Wall Street the Dow Jones is on the rise (+1%). On the other hand, the S&P 500 (-0,1%) and the Nasdaq (-0,4%), weighed down by Apple's decline (-1,3%) which pays for the forced decision of some suppliers, including Foxconn, to suspend production after China has decided to lock down the cities of Shenzhen and Shanghai (partially) in an attempt to contain the infections from COVID-19.
In New York, attention is focused on the Federal Reserve which it will officially announce on Wednesday the first interest rate hike since 2018. It is expected to be 25 basis points lower than previously expected due to the uncertainties brought about by the Russian invasion.
At Piazza Affari Tim rallying, eyes on Generali
In Milan Tim is the protagonist of the session (4,95%) following the board meeting which decided to give a mandate to the top management to open a dialogue with Kkr and, at the same time, moving forward with CEO Pietro Labriola's plan, which envisages the reorganization of the group, also with a view to possible integration with Open Fiber. And speaking of Open Fiber, the board of the company led by Mario Rossetti met to approve the accounts. According to Radiocor, the topics being examined by the board of directors do not include the finalization of the agreement with Tim on the white areas, an important element in view of the thawing of relations between the two competitors. The agreement is in its final stages but will be dealt with in a future Open Fiber board, yet to be convened.
Eyes also focused on Generali (+2,77%), whose outgoing directors should release today the list of candidates for the next board of directors, confirming Philippe Donnet at the helm of the group. On Tuesday, instead, it will be Francesco Gaetano Caltagirone's turn to announce his list of names. Based on expectations, the list should include Claudio Costamagna as president, a technician as a possible CEO and Caltagirone himself.
Among the best stocks of the day are Interpump (+4,39%) and Buzzi (+5%). The banks are positive: Bper (+4,1%), Mediobanca (+4,12%), Intesa Sanpaolo (+3,69%), Unicredit (+3,32%). The car also runs with Iveco (+4,27%) and Stellantis (+3,73%).
The worst performances in Milan
Among the worst stocks of the Ftse Mib is Leonardo (-1,62%), affected by profit-taking after last weeks run. The utilities were negative: Snam (-1%), Hera (-0,86), A2a (-1,11%).
Closing down also for oil companies with Teneris and Eni which lost 2,48% and 0,44% respectively. The company led by Claudio Descalzi announced today the sale of 49% of Enipower at Sixth Street. Rothschild & Co. acted as advisor to Sixth Street. Saipem -0,76%.
Oil and gas down
Oil prices continue to fall in the hope of successful negotiations between Russia and Ukraine. The Brent contract in May dropped by 7,2% to 104.48 dollars a barrel, while that of the WTI in April dropped by 7,6% to 100.97 dollars.
Gas prices are also falling, with the contract in April coming in at 114 euros per megawatt hour, down 12%.
Moving into the secondary, it is stable at 159 basis points the spread (-0,6%), with the yield on the Italian ten-year bond rising by 2,6% to 1,927%.
Visco: "Acute uncertainty about the world economy"
“Today's meeting comes at a tragic moment: this week's events have thrown a shadow of acute uncertainty about the world economy”, said the governor of the Bank of Italy, Ignazio Visco, speaking at the Bank of Italy-Maeci Conference on “Energy transition, finance and climate: challenges and opportunities”. “Today – warned Visco – peace on our continent is in jeopardy: it is a question of a profound as well as dramatic caesura which can only lead to different balances, even if now difficult to define”.
“Recent developments on the energy markets, aggravated by the aggression against Ukraine” make “the overall balance more precarious. It is evident today that there are no simple and shared answers, but postponing the climate challenge is certainly not a solution: it would only mean being forced in a few years to take stronger and more sudden measures to avoid catastrophic environmental scenarios”, concluded the governor.
