(Il Sole 24 Ore Radiocor Plus) – European stock exchanges are witnessing another session in the red, affected by the possibility of a global economic recession in the coming months, while central banks are ready to attack higher than expected inflation rates. Although the dynamic performance of Chinese listings (HANG SENG; SHANGHAI STOCK EXCHANGE A SHARES INDEX) is driven by President Xi Jinping’s desire to support technology companies, while introducing better regulation of payment platforms and financial services, the major European indices are on a sharp downward trend particularly through sales For mining and energy companies while raw material prices are under more pressure.
The Federal Reserve and the European Central Bank are at the center of attention
Piazza Affari is no exception (FTSE MIB) in the wake of a sharply lower session (-1.4%) which, as across Europe, Fed Chair Powell’s comments on “surprisingly high” inflation ruled out widespread fears of a possible outbreak. Economic recession is imminent for the major economies. number one from Federal Reserve, who will speak again in the US House of Representatives, spoke of possible “more surprises” on the inflation front, underlining the Fed’s will to push it back toward the 2% target. bulletin European Central Bank It is expected that the general council meeting of the central institution will be held while the market continues to await the details of the anti-proliferation shield.
Pressing the raw materials
Commodity prices continue to rule out the possibility of an economic recession in the coming months for major countries: ahead of the weekly US oil inventories, West Texas Intermediate crude for August falls below $104 a barrel, while Brent for August falls below $110 a barrel. Three-month LME copper futures are down 2%.
The collapse of Saipem in Milan and sales to banks and industrialists
In Milan, there are still big sales on Saipem (which lost up to 11%) which lost more than 21% after the launch of the €2 billion capital increase. Dawn Ini is a shareholder in the Oil and Gas Services Group. Banks and industrial stocks are among the most sanctioned on the list. Piatta Banca Mps after the introduction of the new industrial plan that aims to reach 1 billion profits in 2024 and which emphasizes the need to move forward with a capital increase of 2.5 billion euros to be implemented during the year.
In the initial stages, the yield difference between the ten-year BTp standard (Isin IT0005436693) and the same German maturity was at 202 points, from 200 basis points for the previous cycle. The 10-year benchmark BTp yield also rose slightly, hitting the top spot at 3.67% from 3.65% at closing overnight.