European stock exchanges warned, banks are holding back in Milan. Spread above 200 pips

(Il Sole 24 Ore Radiocor) – European stock exchanges are moving cautiously in the first session of the week, after trying to start a rally following the positive closing of Wall Street on Friday and Tokyo this morning. The slowdown in bankers curbed profits with the CAC 40 in Paris outperforming the FTSE MIB in Milan and the DAX40 in Frankfurt. Today in the United States we celebrate Independence Day and Wall Street will be closed and no macro indicators will appear, while in Europe in the morning the production price index for May is expected to be published for the Eurozone and the entire European Union. On the geopolitical front, pro-Russians announced yesterday that they had occupied the city of Lyschansk and the entire Luhansk region in eastern Ukraine, today in Lugano, Switzerland, the Ukraine reconstruction conference opened. Representatives of 41 countries and 19 international organizations will meet, including representatives of the World Bank and the United Nations, but no head of state will attend. As for Italy, on the domestic front, all eyes were focused on meeting Prime Minister Mario Draghi and captain of the 5-star team Antonio Conte. The week will be dominated by the publication of the FOMC and MPC meeting minutes and labor market data for June. The minutes should underline the Fed’s determination to curb inflation at all costs, and the employment report should show sustained growth in non-farm payrolls. The minutes of the ECB meeting will also be published on July 7th.

FTSE Mib stock market trend

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Among the stocks, oil stocks jumped with Eni and Tenaris in Milan, while Saipem, after a positive start, started to fall again. The opposite signal for banks: Intesa Sanpaolo, Unicredit, Banca Pop Er, Banco Bpm, where and when BTp/bund margin rises above 200 basis points, according to financial timesThe European Central Bank will look for ways to prevent lenders from making excessive extra profits as interest rates rise.

BTp/Bund spread back above 200, yielding 3.27%

The spread between BTp and the Bund rises above the 200 basis points threshold at the start of the first session of the week. The yield spread between the ten-year BTp benchmark (Isin IT0005436693) and the same German maturity moves in early trading at 204 basis points, up six points from Friday’s close. The Italian 10-year bond yield is also growing, to 3.27% compared to the 3.22% it closed on Friday.

BTP/Bund spread trend

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The euro is recovering, oil and gas are rising

In the currency market, the euro was trading at $1.0429 (1.0405 on Friday, after hitting its lowest level since January 2017), and 141.171 yen (140.69), when the dollar equals 135,355 yen (135, 23). The price of oil rose slightly: the Brent contract for September delivery rose 0.27% to $111.93 a barrel, while the August contract for West Texas Intermediate crude rose 0.34% to $108.8. The price of gas in Amsterdam rose by 1.7% to 150 euros per megawatt-hour, after a new alarm was raised about supplies in Germany.

Nikkei closed at +0.8% led by energy and auto

The beginning of the week in the rise of the Tokyo Stock Exchange. The Nikkei closed at 26,153.81 points (+0.8%), led by energy and auto stocks. The progress of the broader Topix index was more evident, reaching +1.3 percent in the end.

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