EU stock exchanges still in red, Milan black shirt awaiting the elections

(Il Sole 24 Ore Radiocor) – Piazza Affari is black jersey in Europe with a drop of more than one point in the last session before Sunday’s elections, while the European stock exchanges they continue to deal with fears of an imminent recession and the monetary tightening of central banks, from the Federal Reserve to the ECB, to try to curb the record run of inflation. This week, among others, Sweden, Norway and the United Kingdom also revise interest rates upwards, moves that have sent the main markets of the Old Continent into distress on the prospect of a series of faster-than-expected increases ( starting with the Federal Reserve). Thus, slowed down in particular by the auto and energy sectors, the CAC 40 of Paris, on DAX 40 of Frankfurt, pending the review of the rating by S&P, theIBEX 35 of Madrid, theAEX of Amsterdam and the FT-SE 100 from London. Eve of sales also on Wall Street, where the S&P 500 finally closed in the red and on the lows since July. Asian prices are weak, with Tokyo closed for holidays.

Milan cautiously awaiting the vote on Sunday

For Piazza Affari it is thelast session before the political elections and the FTSE MIB moves with caution. The observers who are waiting at the gate for the outcome of the polls to understand the possible composition of the new government after the early fall of Prime Minister Mario Draghi, with the many “hot” dossiers on the table, from the PNRR to the single network.
In the meantime, the day is rich in macroeconomic data starting with the SME indices in September in France (down to 47.8 points, below the 50 point threshold), Germany (down in September, to a minimum in 28 months), Eurozone (the services index fell to 48 , 9, manufacturing at 48.5) and Great Britain, while from the United States we look at the preliminary Markit Pmi Servizi index for September. Meanwhile, remaining on the macro front, the decline in registrations of commercial vehicles in Europe (EU, UK and EFTA) continues. In fact, last July, compared to the same month in 2021, the decline was 17.7%, down to 149,420 new registrations.

Amplifon is on the rise, eyes on Tim with negotiations with CDP

Eyes on Piazza Affari in the run up to the appointment with the ballot boxes. On the main Milanese list they go up Amplifon, Inwit And Telecom Italia, grappling with the negotiation with CDP on the single network, whose offer should arrive, in fact, after the vote. Weak Banco Bpm, Leonardo – Finmeccanica And Saipem.

Fears of inflation, central banks and the Ukraine conflict remain

The markets are however influenced by fears about the effects of the restrictive policies of the central banks impacting on European lists. The increase in the cost of money, to fight inflation, continues to worry investors, now frightened by the risk of recession. The main European stock exchanges fell after the moves by the Federal Reserve and the Bank of England which both decided to raise the cost of money. These moves, moreover, have also pushed up the interest on government bonds (the ten-year Treasury in the US stands at 3.69%, that on the Italian BTP to 4.2%). Furthermore, the markets are concerned about the scenario of military escalation in Ukraine, following the threats of the Russian president, Vladimir Putin, on the possible use of nuclear weapons.

BTP / Bund spread trend

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Spread slightly moved in the area 220 points before the vote

Little movement for the BTp-Bund spread in the last session before the elections. The yield differential between the ten-year benchmark BTp (Isin IT0005494239) and the same German maturity is indicated at 220 basis points, one less than the last reference. There was also a slight decline in the ten-year BTp yield which marked a first position at 4.17% from 4.19% at the previous closing.

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EU stock exchanges still in red, Milan black shirt awaiting the elections

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