(Il Sole 24 Ore Radiocor) – After the middle of the session, the weak performance of the European stock exchangeswith the FTSE MIB of Milan which does not give much weight to the fact that on Friday the rating agency S&P confirmed the rating at “Bbb” with a stable outlook. In the first session of the week, Piazza Affari was affected by the detachment of dividends by eight companies listed on the main stock exchange, which resulted in a technical decline of 1.36%. However, net of dividends, the Ftse Mib would be slightly up.
Slightly down the CAC 40 of Paris, the DAX 40 of Frankfurt, with the Ifo index on German business confidence at 93.6 points in April, below estimates, theIBEX 35 in Madrid, l’AEX of Amsterdam and the FT-SE 100 from London. Also wait for the opening of Wall Street, which promises to be sluggishaccording to major index futures.
The European indices are returning from the fifth week of consecutive rises, the American Stock Exchange has filed the weekly balance sheet in the red, feeling the effects of the disappointment for numerous quarterly reports including that of Tesla which ended up weighing on the entire auto sector. In addition, investors fear that the Federal Reserve will continue to raise the cost of money, despite the economy showing signs of a slowdown. Signals that will be revealed during the week when the first reading of the GDP for the first quarter of 2023 is released.
Coupon detachment slows down the Ftse Mib, eyes also on the banks
In the spotlight the companies that detach the coupon: it is about Bank of Milanwhich detaches 0.26 euro per share (3% gross yield compared to today’s closing), bpm bank (0.23 euro per share, 4.235% yield), which moreover remains under scrutiny, in view of possible extraordinary operations, Unicredit (0.9872 euros per share, 5%), Stellar (1.34 euros per share, 8.4%), which raises its head again after last week’s slide, Cnh Industrial (€0.36, 2.7%) and Ferrari (1.81, 0.7%). Finally they disconnect the dividends too David Campari (0.06 euro per share equal to 0.5% of dividend yield) e Prysmian (0.6 euro dividend for a yield of 1.57%).
Banks do not seem to be affected by the long wave of the accounts of the Swiss Credit Suisse, which in the first quarter of 2023 returned to profit for 12.4 billion Swiss francs, against the loss of 273 million last year. The institute, however, revealed that it had recorded a flight of deposits exceeding 61 billion Swiss francs. Furthermore, Credit Suisse also admitted that the outflow of deposits “has slowed down but has not yet reversed”. Still on the main list, Telecom Italia it has changed direction several times and after an attempted rebound it has lost altitude again, reflecting the fear that the sale of Netco is in a stalemate.
Spread slightly down, ten-year yield also down
Positive trend for government bonds traded on the Mts telematic secondary market. The entire eurozone sovereign bond sector is held in cash, with yields declining sharply and Italian ten-year bonds currently outperform the Bunds. The yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the same German maturity is 186 basis points (187 basis points at the final on Friday). The yield on Italian 10-year bonds fell again to 4.31%, from 4.35% at Friday’s closing.
Euro up, gas and oil prices down
On the currency market, the euro regained the threshold of 1.10 dollars: it changed hands at 1.1016 dollars (1.0974 dollars at Friday’s close). It is also worth 148.25 yen (147.4), while the ratio between the greenback and the Japanese currency stands at 134.57 (134.3). Natural gas stood at 39.8 euros per megawatt hour in the May contract on the TTF, down 0.8%. Finally, oil reduced its losses: the WTI, expiring in June, fell by 0.3% to 77.63 dollars a barrel.
Tokyo closes slightly higher, weak Chinese markets
The Tokyo Stock Exchange closed the first session of the week slightly up, following the closing of little changes in the US stock indexes, and waiting for more indications from the season of corporate quarterly reports, in particular from the technology sector. The Nikkei reference list marks a barely positive change of 0.10% to 28,593.52, and an increase of 29 points. Expectations of a gap in the interest rate differential between Japan and the United States affect the devaluation of the yen against the dollar, at 134.40, and at 147.50 against the euro. The Hong Kong Stock Exchange, on the other hand, opens the session slightly down: the Hang Seng index drops 0.13% in the early stages, slipping to 20,049.87 points. The Shanghai Composite index dropped 0.01% to 3,300.81 points in the first few moments, while the Shenzhen Composite index dropped by 0.08% to 2,064.43.