European stock markets are expected to rise (+0.16% Eurostoxx50) after an agreement on US debt is finally reached. The agreement provides for the suspension of the maximum government debt, currently set at $31.4 trillion and now reached, for a period of two years, that is, beyond the deadline for the 2024 presidential elections, thus avoiding serious crises in the electoral climate.
Wall Street and London are closed today due to holidays
In contrast, the agreement effectively froze federal spending, preventing any increase. In fact, in some cases it even reduces them, except for the increases related to defense and veterans », underlines Antonio Tognoli of Cfo Sim. “According to an analysis by The New York Times, the effect over ten years of the main provisions included in the agreement could be spending cuts equivalent to $650 billion, a result that is generally considered rather modest,” the expert specifies. . As a result, futures rose on Wall Street (+0.20% on the Dow Jones and +0.31% on the S&P500), and the yield on US Treasury notes fell to 3.81%. US markets are closed today for Memorial Day and UK markets for spring break with thin volumes.
The euro rose against the dollar and Brent crude above $77 a barrel
While the dollar is losing ground against the euro, which is equal to 1.073 (+0.31%), waiting for some macro data: at 10 am the money supply in the eurozone on an annual basis in April, whose growth rate is expected to slow down to 2.1% ( from 2.5% in March), in line with monetary policy guidance. However, at 4pm, US Consumer Confidence for May will be released (estimated 100 points m/m vs. 101.3 in April). Among raw materials, WTI (+0.65% to $73.15 per barrel) and Brent (+0.53% to $77.39 per barrel) were higher. The price of gold settled at 1964 dollars an ounce.
In Milan, pay attention to Prysmian, Tim, Autogrill and Juventus
On Milan’s roster, pay attention to Prismian with Valerio Batista who will step down as CEO starting at the next shareholder meeting in 2024 after nearly two decades at the helm of the group. He will be replaced by Massimo Battini, the current COO and member of the Board of Directors. Instead, Intesa Sanpaolo has signed an agreement with all trade union organisations, which consolidates and expands the measures of the new organizational model in place since January 1, which provides for a short week of 4 days in exchange for a working time of 9 hours per day. , equaling a reduction from 37.5 to 36 hours, on a voluntary basis. Also set to be monitored is Tim, who has an extraordinary board of directors. As for Autogrill, Dufry CEO Xavier Roscinyol said in an interview with Milano Finanza on Saturday that he’s confident the 90% threshold (from about 87%) needed to delist Autogrill has been reached. The Swiss group has reopened its public exchange offer until June 1. Finally, watch out for Juventus, who lost to Milan in the 37th round of the tournament, while Lazio beat Cremonese in return. (All rights reserved)
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