EU bourses cling to Wall Street and wait for the Fed, Milan closes at +0.4%. Spread at 202 pips

(Il Sole 24 Ore Radiocor) Wall Street’s pullback, which rebounded after a long weekend in a bid to recover a portion of the $2 trillion that US listings burned last week, has buoyed European stock markets. Thus, the continental stock exchanges were able to consolidate the positions they gained yesterday thanks to the assurances of the President of the European Central Bank, Christine Lagarde, on the effectiveness of the anti-proliferation shield. Investors’ attention is now turning abroad, with Federal Reserve Chairman Jerome Powell’s bi-monthly testimony due in the US Senate tomorrow, through which the market hopes to get more information about the central bank’s future moves to curb “inflation”. In Avary Arena, the FTSE MIB ended the day 0.39% higher. Among the stocks in Milan with the highest capitalization, Leonardo – Finmeccanica stood out after the announcement of the merger in the American subsidiary Drs of Rada Electronic Industries, a supplier of advanced software-defined tactical military radars, already listed on Nasdaq and Tel Aviv. Banks also performed well, led by Banco Bpm, as well as major industrial companies such as Stellantis and Stmicroelectronics (+2.57%). Recordati, on the other hand, has fallen behind after a series of positive sessions. Utilities are in red.

Rip Leonardo thanks to Rada’s merger into Drs

As for Leonardo, purchases began right from the start upon news that the US subsidiary Drs and Rada Electronic Industries had signed a binding agreement to merge Rada with Leonardo Drs. A move that analysts consider “strategic”. Rada is a supplier of advanced software-defined tactical military radars, already listed on Nasdaq and Tel Aviv, and upon completion of the deal, expected by the end of the year, Drs will also be included in both lists. In detail, Drs will acquire 100% of Rada’s share capital in exchange for the assignment to existing Rada shareholders of approximately 19.5% in Leonardo Drs which Leonardo, through its US subsidiary Leonardo Holdings, will continue to own in the ’80. , 5 percent.

FTSE Mib stock market trend

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In Milan, bankers continue to rise, utility sales

Banks remain aligned with Banco Bpm, Unicredit and Intesa Sanpaolo, among the stocks raising their heads thanks to the European Central Bank’s anti-shield premise. Investors’ purchases focus on Iveco Group, which has announced its intention to return to bus production in Italy (by ordering access to Mise “development contracts” as part of the opportunities offered by the National Recovery and Resilience Plan). Stellantis and Cnh Industrial are doing well in the automotive sector. Among carriers, Telecom Italia is struggling with the network’s valuation by French partners Vivendi at €31 billion, which analysts look “cool” as it could be an obstacle to a merger with Open Fiber. At the bottom of the list are the facilities with Terna, A2a and Italgas.

Spread stable at 202 pips, return at 3.8%

The spread between BTp and Bund ends the session at unchanged levels at the end of the introductory day for Eurobonds which recorded limited moves. The yield spread between the ten-year BTp benchmark and the same German maturity settled at 202 pips at the end of the day, unchanged from the previous session. On the other hand, the yield of the benchmark ten-year BTp rose slightly, reaching a final position of 3.80% from 3.77% at the close on the eve of the day.

Euro breaks $1.05, yen hits lowest since 1998

On the foreign exchange front, the euro is consolidating above $1.05 and is trading at 1.0558 (from 1.0531 yesterday’s close). The yen was weak, falling to 143.81 per euro (from 142.15) and 136.19 per dollar (from 135.02) after hitting a new 24-year low of 136.34. The gas rush continues due to export cuts by Russia with prices reaching €125.5 per megawatt-hour (+4%). Finally, the price of oil rebounded with WTI futures for August at $110.14 (+1.22%) and Brent crude at $115.41 (+12%).

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