Stocks bounce with eyes on Fed. 10-year BTp to top from 2019, Bund above 1%

(Il Sole 24 Ore Radiocor) – In the aftermath of a down session, marked in the morning from a “flash crash” then reabsorbed, the European stock exchanges the hikes rebound and gradually consolidate, always with eyes on central banks and above all on the Federal Reserve, which on May 4th should announce the largest rate hike since 2000 with a 50 basis point adjustment. In a mixed session for Asian stock exchanges, with Japan and China closed for holidays, the Australian Central Bank announced a higher-than-expected rate hike (25 basis points to 0.35%, against expectations of 15 basis points), promising further hikes of the cost of money in the coming months. Also the Bank of England will meet this week and investors are focused on whether tightening monetary conditions to control inflation will weigh on the economic recovery.

While banking, energy and cars are running, they are all up FTSE MIB of Milan, which back above 24,000 pointsthe CAC 40 of Paris, on DAX 40 in Frankfurt, theAEX of Amsterdam andIBEX 35 of Madrid. Lags further behind the FT-SE 100 in London, despite the support of the giant BP (+ 2.6%) after record profits, weighed down by miners. pressure on bondswith 10-year US Treasury yields remaining at 3%, those on the German Bund above 1% and those on the BTp at 2.89%.

However, attention remains high on the war and sanctions front: the European Commission should propose a new round of restrictions against Russia, which will then be discussed on Wednesday. In the sixth package, the gradual reduction of Russian oil imports and new sanctions for Russian banks, as confirmed by the High Representative of the Union for Foreign Affairs, Josep Borrell. On equities, the quarterly season continues with oil giant BP which has recorded record profits for 10 years, net, however, of writedowns in Russia of 25.5 billion dollars.

In Milan, eyes on Campari and Cnh on the day of the board of directors

On the stock market, the board of directors of Davide Campari And Cnh Industrialwhile among the banks the devaluation of Russian assets of Unicreditaccording to what he writes The sun 24 hours. To follow too Stellantis who announced the purchase of Share Now and after the 41% slump in April sales. Also good Ferrari And Iveco Group. Finally, the government announced an increase in the tax on extra-profits from 10% to 25% for energy companies: little moved anyway Is in the, Iren, A2a. In the queue the energetics, while on the opposite front they accelerate Prysmian, Stmicroelectronics And Diasorin.

Spread still rising, ten-year yield at the top from 2019

The rise in rates does not stop and at the start of the session on the electronic secondary MTS the ten-year BTp marks a yield of 2.88% after closing at 2.85% on the vigil, updating the new high for three years. The spread with Bunds widens further: the yield differential between the ten-year Italian benchmark (Isin IT0005436693) and the same German maturity is 189 points higher than the indication of the final on the eve of 185 basis points.

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Stocks bounce with eyes on Fed. 10-year BTp to top from 2019, Bund above 1%

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