Milan – European markets are off to a cautious start but are approaching a good rally, which puts concern for the time being about monetary tightening of central banks and calming economies affecting investors’ mood into a freezer. Milan – It was affected by the effect of -0.29% by separating coupons – and the session ended with a gain of 0.99%, especially driven by the banking sector. After excluding the dividend effect, Piazza Afari is in line if not ahead of the others: Paris 0.64% salt, Frankfurt 1.08% H London by 1.58 percent. As for Piazza Avari? Price fork is recorded for public subscription of de Nora industriesGreen Hydrogen Company: range between 13.5 and 16.5 euros, valued at approximately 2.7 to 3.28 billion.
Lagarde: I sip the crumb in the cradle
The yield differential between Italian BTPs and German 10-year bonds ended the session barely moving in the 200-point region, having fallen to 190 points, with the Italian title yield increasing slightly to 3.77%. I talked about badger again Christine LagardeThe president of the European Central Bank, who spoke to the European Parliament, looked at the September meeting: “The extent of the rate hike will depend on the updated medium-term inflation expectations. If the medium-term inflation expectations persist or worsen, a larger increase would be appropriate at our meeting in September “. In July, prices will start to rise by 0.25%.
Noting the central bank’s commitment against market fragmentation, or rather the asymmetric reactions of sovereign returns to the crisis, Lagarde clearly stated that it is a risk to be “nicked in the bud” and attention to the overturning of the ECB’s mandate, precisely because it is essential to achieving price stability goals. . “Anyone who doubts our resolve” against any risks of monetary policy fragmentation “is making a big mistake,” Lagarde said. “We have shown many times in the past that we can act with flexibility and creativity and we will do it again,” he added. In a second report later in the afternoon, he also answered a question from German MEP Gennar Beck about the opinion of Prime Minister Draghi’s advisor. Francesco GiavazziRaising interest rates is the wrong tool against inflation. “Everyone has their own opinion about the right instrument and the right times, but there is only one institution responsible for monetary policy and that is the European Central Bank,” Lagarde highlighted. “We have set the path of normalization, which is absolutely legitimate and necessary,” he said, quoting my colleague from the Bank of Italy, Ignazio Visco.
Before that, he explained: “We have decided to apply flexibility in reinvesting accrued recoveries in Pepp’s portfolio, in order to keep the monetary policy transmission mechanism working, which is a prerequisite for the European Central Bank to be able to fulfill its mandate of stabilization . . of prices.” Furthermore, “we have decided to instruct the relevant Eurosystem committees together with the services of the European Central Bank to expedite the finalization of the design of a new anti-fragmentation instrument under consideration by the Governing Council.” These are decisions that “support our previous commitments to adjust all of our instruments within our mandate, while incorporating flexibility as needed, to ensure inflation stabilizes at our medium-term target of 2%.”
The words of reassurance came from the head of the Eurogroup in an interview with the Financial Times Pascal Donohue, under which the eurozone can calmly overcome recent market volatility and its economy will grow this year and next. He explained that current conditions are “totally different from the crisis environment we were in” in early 2010, as the region has “deeper foundations for our common currency.” Because of this, he explained, “we are all confident in our ability to weather the changes that are occurring.” “The initial positions of member states in terms of debt and deficit levels – make it clear that they are now very, very different from what we were before Covid hit us.” “We will still need plans to carefully reduce lending,” the Irish minister continued, adding: “The plans to do so must be credible. They will have to reflect the fact that we are in an inflationary environment.” He concluded: “We accept that there are changes in market conditions, and that is understood as monetary policy changes that reflect a changing economy” but there is still “unity of purpose in ensuring that we have plans and procedures in place to keep the euro and the eurozone resilient.”
More doubts emerged from .’s monthly newsletter Bundesbank, which considers “the fact that the system of general exception to the rules of religion has been extended until the end of 2023 is not convincing.” The extension opens up spaces for new debt financed by budget programs “which are not mentioned in today’s perspective”. The financial situation in some countries is fragile, and the existence of reliable financial rules is more important than ever for the Bundesbank.
The euro recorded positive comments from Lagarde, closing in the 1.0530 range against the dollar and around 142.10 against the yen. The exchange rate between the dollar and the Japanese currency remained stable at the level of 135.
how do you notice BloombergThe MSCI Asia index summarizing the performance of eastern markets recorded the longest series of negative sessions since February 2020, when Covid 19 exploded. At the end of the day, the eastern listings recorded contradictory trends: Tokyo It lost 0.74%, Taiwan 1.75%, Seoul 2.04% and Sydney 0.64%. jump Hong Kong (+0.2%) e Shanghai which closed flat while Shenzhen stock rose 1.3%. Price lists remain today without reference to Wall Street, closed for “June 19th Day”, which commemorates the emancipation of African American slaves. Investors are awaiting clues on the Fed’s next steps from President Jerome Powell, who will be heard next Wednesday in the Senate and Thursday in the House. Concerns remain that the US central bank’s monetary tightening could push the global economy into a recession.
Written by Flavio Bini, illustrations by Paula Simonetti, Corrado Moretti and Paola Cipriani
The Chinese yuan rose to a one-week high against the dollar, buoyed by Beijing’s decision to keep benchmark lending rates unchanged to avoid further monetary policy differences with other economies. The one-year reference rate was kept at 3.70% and the five-year rate remained unchanged at 4.45%.
Try the jump Bitcoin, is in the midst of a very difficult phase where other cryptocurrencies are increasingly tied to riskier assets and thus are subjected to monetary tightening by the Federal Reserve. The main digital asset. After reaching 18,880 points
USD, is back up and standing at $20,725, an increase of 9.59% in the last 24 hours. Good performance for Ethereum which gained 13.7% at $1,126. The concern of some observers is that a decisive break of the $20,000 threshold would trigger another forced sell-off by those who put themselves “out in the open,” putting more fuel in the drive of declines that have already led this year to a loss close to 60. % for bitcoin. The financial agency notes that it is no coincidence that the projected three-month volatility index will be at its highest in 2022.
Among the commodities, the prices petroleum They travel quite a bit in the Asian markets. Concerns about slowing global economic growth and fuel demand prevailed over concerns about rising inventories, which pushed prices higher. US West Texas Intermediate crude fell 0.17% to $109.37 a barrel, while Brent North Sea crude fell 0.02% to $113.10 a barrel.
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