European Union stock exchanges are in decline, inflation and growth fears are at the fore

European Union stock exchanges are in decline, inflation and growth fears are at the fore

(Il Sole 24 Ore Radiocor) – Another difficult session for European stock exchangeswhich is still moving in a sign of risk aversion, After the eve discounts: Investors are convinced that Rebound in price lists on Tuesday Rely on over-optimistic assessments of the economy’s resilience in the face of surging inflation and the correction began on Wednesday. Thus, rising consumer prices, the consequent tightening of monetary policy, the tight zero policy of Covid in China, and the consequences of the war in Ukraine, continue to weigh on the mood of operators.
Moreover, the declining quarterly reports of large-scale distribution giants, starting with Target (a 25% drop on the eve), which fueled concerns about consumption dynamics, do not help. Thus, the Asian markets witnessed a bearish session in general, as happened in FTSE MIB Milan, dated CAC 40 Paris, dated DAX 40 in Frankfurt FT-SE 100 London, andIBEX 35 Madrid andAEX Amsterdam.

In Milan, eyes are on my general after the calculations, and I come down on luxury

Among the main stocks in Milan, most of them fell, public Hold up, reverse trend thanks to first quarter accounts. Moreover, shareholder Fondazione Crt on Wednesday ruled out an intention to sell his stake. The Milan List is backed in part by the big names in the industry, with Leonardo – Finmeccanica At the top, while sales hit cars, with IVECO Group And Stilants Among the worst, and above all luxury, with Moncler Significantly down.

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The spread goes back to 200, even on a ten-year yield

Upside trend of the spread between BTp and Bund in the MTS secondary market for European government bonds. The yield differential between the ten-year BTp benchmark (Isin IT0005436693) and the same German maturity is indicated at 195 basis points from the 192 points recorded in the previous close. The benchmark 10-year BTp yield also rose to 2.96% after hitting last place at 2.94% at the end of the night.

The euro is below $1.05, and oil is on the rise

In the foreign exchange market, the euro is still below $1.05 and is indicated at 1.0483 from 1.0494 yesterday’s close. The price of oil is raising its head after two days of declines: Brent crude futures in July rose 1.23% to $110.45 a barrel, while West Texas Intermediate crude with June delivery rose 0.68% to 110.34. Natural gas in Europe is slightly below average: on the Dutch platform Ttf the price is -0.6% at 94 euros per MWh.

Tokyo closes its doors to scare off inflation

The Tokyo Stock Exchange closes the session sharply lower after the collapse of Wall Street, which witnessed on the eve of one of the worst sessions since June 2020 amid concerns about the economic outlook in the context of rising inflation that also weighs on the quarterly numbers of many companies. After four consecutive bullish sessions, the blue-chip Nikkei left 1.89% at 26,402 points at the end of trading and the broader Topix lost 1.3% to 1860.52 points.

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