Spreads rose and stock exchanges fell on this fiscal week’s reopening, which coincides with Vladimir Putin’s speech celebrating Russia’s victory over the Nazis in World War II, but also with recklessness about potential interest rate increases in July. from the European Central Bank. s.I unify the upward trend in European government bond yields with peripheral bonds selling more than core European bonds: a dynamic that leads to a significant widening of spreads. In the Italian case, the yield differential between the ten-year BTp benchmark and the German term itself is indicated at the end of the session at 203 basis points compared to 200 points in Friday’s final. The benchmark 10-year BTp yield is down slightly, but remains above the 3% threshold, which finished at 3.14% from 3.15% overnight.
Milan closed at -2.74%, back below 23,000 points and back to last March’s levels, with Paris losing 2.75%, Frankfurt 2.15%, London 2.32%, Madrid 2.08% and Amsterdam 2.35%. In Piazza Affari, only two stocks are on the rise: Atlantia (+0.18%), slightly above average, while Leonardo (+1.39%) has emerged, following positive analyst assessments on the accounts and despite today’s chiaroscuro for Europe’s defense sector. Small drops for Bper (-0.78%%), pending accounts, arriving after close. At the bottom of the main index are Amplifon (-5.27%) and Diasorin (-5.39%), among the worst on a negative day for the pharmaceutical health sector.
Oil market and foreign exchange
The oil sector is also bad, with the price of crude oil crashing, after Saudi Arabia decided to cut official sales prices in Asia and Europe: the July delivery contract for Brent crude lost 5.48% to $106 and $33 a barrel. which expires in June on WTI 5.71% at $103.62 a barrel. In the foreign exchange market, the single currency is trading at $1.0527 (1.0511 at the beginning and 1.0597 at the end of Friday) and 137,447 yen (137.906 and 137.39), when the dollar is equal to 130.54 yen. (131.186 and 130.24).
Wall Street is ramping up its losses with the Nasdaq and S&P 500 under heavy pressure. The Dow Jones lost 1.65% to 32.359.62 points, the Nasdaq lost 3.32% at 11,741.07 points and the S&P 500 leaves 2.46% on the ground at 4,021.98 points.
Energy, banks and cars are declining
Behind the decline in the general index of the Italian Stock Exchange today, in particular, the decline of banks and energy companies . At the end of the morning Banco recorded Bpm -2.4%, Intesa -1.5%, Mps -1%, Unicredit -0.8% and Bper -0.4%. While Eni sold 0.6%, Saipem 1%, Erg 1.5%, and Enel 2%. The auto sector was also down with Iveco at -1%, Ferrari at -0.6%, Pirelli at -0.7%, and CNH at -0.4%. Among the rising stocks are Leonardo Per la Divesa (+2%) and Cellularline at 4.14% due to a takeover offer by Esprinet.
Olli Renj’s statement
In the morning, Olli Rehn, Governor of the Finnish Central Bank and above all the former European Commissioner for Economic Affairs, in an interview with some newspapers including Italy’s La Stampa, revealed the strategies of the European Central Bank. Rehn said the ECB would be prepared to raise interest rates and continue reducing bond purchases, but would also be ready to introduce new tools for intervention in the event of an increase in margins. “Ren said it is reasonable to expect a rate hike in July In line with the normalization of our monetary policy. I expect a reset in the fall, provided that there are no repercussions from the situation in Ukraine such as impeding the developments of the European economy.”
gas and bonds
Ren also said a blanket gas ban would not be disastrous for Europe Economically, but we must respond to the trend of inflation. In essence, he advocated a joint plan to combat price increases. For this reason, the European Central Bank will be prepared to intervene on the prices and purchases of securities. Following the statements of former Commissioner Yu, yields on other 10-year government bonds, as well as BTPs, rose: in Spain to 2.28% and in Greece to 3.63%.
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