Cautious European stock exchanges, banks are holding back in Milan. Spread back above 200 points

(Il Sole 24 Ore Radiocor) – European stock exchanges move cautiously in the first session of the week, after trying to start higher in the wake of the positive closing of Wall Street on Friday and Tokyo this morning. The slowdown in banking is limiting earnings with the CAC 40 of Paris which does better than FTSE MIB of Milan and of DAX40 of Frankfurt. Today in the United States we celebrate Independence Day and Wall Street will be closed and no macro indications will arrive, while in Europe in the morning the production price index for May for the euro zone and the entire EU is expected to be published. On the geopolitical front, after yesterday the pro-Russians announced that they had conquered the city of Lysychansk and the entire Lugansk region, in eastern Ukraine, today in Lugano, Switzerland, the Conference for the reconstruction of Ukraine opens. Representatives of 41 countries and 19 international organizations, including representatives of the World Bank and the United Nations, will gather, however, no head of state will be present. As for Italy, on the domestic front, eyes focused on the meeting between the Prime Minister, Mario Draghi, and and the leader of the 5 Stars, Antonio Conte. The week will be dominated by the publication of the minutes of the meeting of the FOMC, the monetary policy committee of the Federal Reserve, and the data of the June labor market. The minutes should confirm the Fed’s determination to curb inflation at any cost and the employment report should still show sustained growth in non-farm payrolls. The minutes of the ECB will also be published on 7 July.

FTSE Mib stock market trend

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Among the stocks, oil stocks rose in Milan with Eni And Tenaris, while Saipem, after a positive start, it is once again losing ground. Opposite sign for banks:Intesa Sanpaolo, Unicredit, Bank Pop Er And Banco Bpm with the BTp / bund spread back to above 200 basis points and when, according to the Financial Timesthe European Central Bank would be looking for ways to prevent lenders from making excessive extra profits as interest rates rise.

Spread BTp / Bund back above 200, yield at 3.27%

The spread between BTp and Bund rises above the threshold of 200 basis points at the beginning of the first session of the week. The yield differential between the benchmark ten-year BTp (Isin IT0005436693) and the same German maturity moves at the start of trading at 204 basis points, six points more than at Friday’s closing. The yield of the Italian 10-year is also growing, to 3.27% compared to 3.22% with which it closed on Friday.

BTP / Bund spread trend

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Euro recovers, oil and gas up

On the currency market, the euro changes hands at $ 1.0429 (1.0405 on Friday, after hitting its lows since January 2017), and 141.171 yen (140.69), when the dollar is worth 135.355 yen (135 , 23). The price of oil is slightly up: the September delivery contract on Brent rises by 0.27% to 111.93 dollars a barrel and the August one on the WTI marks a + 0.34% to 108.8 dollars. The price of gas in Amsterdam is up by 1.7% to 150 euros per megawatt hour, after a new alarm on supplies was raised in Germany.

Nikkei closed at + 0.8% driven by energy and automotive

Beginning of the week on the rise for the Tokyo Stock Exchange. The Nikkei index closed trading at 26,153.81 points (+ 0.8%), driven by energy and automotive stocks. The progression of the broader Topix index was even more marked, reaching +1.3 per cent at the end.

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Cautious European stock exchanges, banks are holding back in Milan. Spread back above 200 points


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