(Il Sole 24 Ore Radiocor) – The European Stock Exchanges proceed at cautious steps after the middle of the session, after having fluctuated several times around parity. Investors, who already have their eyes on the next moves of the central banks (the decisions of the Fed and the ECB will arrive between Wednesday and Thursday and the forecast is that they will raise rates further by 25 basis points), can’t find any cues to press on the accelerator and leave behind the new perplexities about the economy triggered on the eve of the manufacturing slowdown. Moreover, the news arrived today did not help dispel the clouds: the confidence of German companies, as shown by the Ifo index, fell more than forecasts in July.
Attentiveness is therefore the watchword, which is why the indices travel slowly: the FTSE MIB of Milan, the CAC 40 of Paris, the FT-SE 100 of London are around parity. The same goes for the IBEX 35 in Madrid and the DAX 40 in Frankfurt. There was therefore little support from Asian public markets, which also closed sharply higher (+4.1% in Hong Kong and +2.1% in Shanghai) with the Chinese Politburo’s commitment to introduce new stimulus measures for the economy.
Post office shoots after the accounts, spotlight on Italgas and the banks
As for stocks, Poste Italiane takes off in Piazza Affari after the second quarter accounts above forecasts, with CEO Matteo Del Fante who spoke of “strong growth”, anticipating “a brilliant future”. Little moved after the results Italgas, which closed the first half with an adjusted net profit up by 14.9% and total revenues increased by 31.7%, with a gross operating margin of 607 million (+18.3%) and operating profit of 358.8 million (+21.2%). Among the best Stmicroelectronics, awaiting the second quarter accounts on which analysts are positive and driven by the American Nxp, which on Wall Street rises by 1.7% after the second quarter results at the top of the guidance range. The banks are also highlighted, again Pirelli & C, already among the protagonists on the eve, and Moncler. On the other hand, Recordati and Interpump Group were at the rear, while Leonardo – Finmeccanica reduced the declines after a negative start.
Trend of the Btp / Bund spread
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Spread not moved, 10-year yield on the rise
Little moved trend for the spread between BTp and Bund with yields that return to rise on the secondary market of government bonds after the previous declines. The yield differential between the 10-year benchmark BTP and the German security of the same duration is indicated at 161 basis points, a fractional increase from the 160 points of the previous closing. The yield of the ten-year benchmark BTP grew more significantly, to 4.06% from 4.02% of the previous reference.
BTp: 3.75 billion short term assigned, yield drops to 3.69%
The Treasury has auctioned short-term BTPs expiring on 09/29/2025 for 3.75 billion with a gross yield of 3.69%, down by one basis point compared to last month’s auction. Demand was just over $5.4 billion for a coverage ratio of 1.45. In today’s auction, BTPs indexed to euro area inflation maturing on 05/15/2033 were also assigned for 1.25 billion with a gross yield of 1.86 percent. Demand was just under two billion for a coverage ratio of 1.57.