Milan – European listings failed to rebound after a difficult Monday, which was marked by concerns about the health situation in China and consequent lockdowns. The central bank in Beijing has pledged to support the economy that has been tested by Covid-19 once again, ensuring that it will promote “prudent support” of monetary policy for the real economy at risk of being curbed, especially for small businesses affected by Covid-19. He said that China will “maintain ample liquidity.” reasonably well and will stimulate the healthy and stable development of financial markets.” Pboc In a note on her website, to answer a question from the newspaper financial news on fluctuations in the financial markets. In addition, the People’s Bank of China will add another 100 billion yuan ($15.3 billion) to support coal development by increasing storage capacity.
However, the news is heating up European markets somewhat, which then weaken along with Wall Street. Milan Ends down 0.95%. in the spotlight Leonardo which, through its US subsidiary Drs, announced the sale of its investment in the joint venture Advanced Acoustic Concepts to Tdsi, a subsidiary of France’s Thales. The others are also red, except for London which captures +0.207%: Paris Produces 0.54% H Frankfurt 1.2%.
Wall Street Moving lower as we mentioned: at the close of European trading, the Dow Jones lost 1.52% and the Nasdaq 2.73%. Investors’ eyes are focused on the quarterly reports of the big tech names in a market worried about rising inflation and slowing global growth. Concerns are also fueled by the increase in Covid infections in China and the risks of new lockdowns in the country. There is a waiting Google and Microsoft results Which will be published after the stock exchange closes. So far, the quarterly reports haven’t disappointed: Eight out of ten US budgets have beat expectations. But, although today’s rollout of HSBC, UBS and Santander accounts in Europe was better than expected, the scenario still features uncertainties ranging from a Chinese slowdown to the war in Ukraine. The Musk-Twitter operation remains in the center of attention, with S&P keeping it under surveillance with a negative lens while awaiting clarity on the effects of the acquisition on its financial strength. as a note BloombergThe South African businessman explained that the 44 billion operation will be financed by banks for 13 billion, with a loan obtained from the same company as Twitterers, while another 12.5 billion sees a package of Tesla shares under pledge. “But details of the rest are missing,” the financial agency says.
The spread between the 10-year BTPs and German bond equivalents ends unchanged at 174 pips with the Italian bond rate at 2.55%. The euro was slightly lower against the dollar after gains earlier today. After falling as low as 1.070 on Monday following the strength of the US currency, which is considered a safe asset in times of uncertainty, the euro now stands at $1.0687. The yen also fell to 136.35. USD/JPY fell to 127.61. In the Financial Times, we note an analysis by Moritz Kremer, an economist at the German bank Lbbw, which states that “the fear that Italy’s high debt burden is a challenge to monetary normalization cannot be dismissed but Italy’s resilience has become more solid. What many prophets attribute to it torment.”
In Asia, Tokyo It finished trading with a growth of 0.41%. On the other hand, weakness remains in the Chinese lists where Shenzhen Lost 1.6%, Shanghai 1.4% while Hong Kong Gained 0.7 percent.
Investors are looking to China, with the peak of Covid-19 cases in Beijing threatening to trigger new shutdowns with consequences for the economy and energy demand, the escalation of the war in Ukraine and price swings petroleumwhich is now moving around parity after changing sides several times during the session (June Wti +0.1% at $98.63 and June Brent +0.3% at $102.66).
Among today’s data, data Eurostat in the labor market in the euro area. In 2021, the average employment rate in the European Union recovered during 2019 to 68.4% (compared to 68.1%) but the same trend was not recorded in Italy which, compared to the pre-pandemic period, lags by 0.8 points (from 59% to 58.2%). The recovery in 2021 in Italy was 0.7 points in 2020 (from 57.5% to 58.2%) compared to 1.4 points on the EU average. (from 67% to 68.4%). Italy has the lowest employment rate in Europe after Greece, however, in 2021, it regained 1.1 points from 2019.