EU stock exchanges slowly advance, between Covid in China and inflation. Oil down

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(Il Sole 24 Ore Radiocor) – In the first session of the week, uncertainty dominates on the European stock exchanges which, starting in decline, have then sought the recovery, which has so far been successful in Milan and Paris. However, the sharp decline in Chinese markets weighs heavily, between the increase in Covid cases in China and above-expected inflation in March (1.5%), while in Europe attention goes to the outcome of the first round of the presidential elections. which will lead to a ballot between President Emmanuel Macron and the right-wing candidate and leader of the Rassemblement National, Marine Le Pen. Macron, according to data from the French Ministry of the Interior, obtained about 27.6% of the votes, about four percentage points more than Le Pen, standing at about 23.4%. Third was the leader of the far left Jean-Luc Melenchon with almost 22%. The ballot on April 24 will be decisive.

To the concern for the war in Ukraine that does not seem to find ways for the peace negotiation is added – on the financial front – the attention for the situation of the Russian economy after the S&P agency placed the Russian sovereign debt in selective default after the payment in rubles of the eurobond in dollars due April 4. Thus, while crude oil prices are in sharp decline and gas prices are slightly up, equity indices are down, starting with the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 40 in Frankfurt, the Ftse 100 in London, Madrid’s IBEX 35 and Amsterdam’s AEX, while US consumer price data are expected for mid-week, while the 10-year Treasury yield exceeds 2.7%.

In Milan Moncler and Atlantia in decline, Prysmian runs

Prysmian’s leap stands out in Piazza Affari and Unicredit rises, which will postpone the data for the first quarter to 4 May (from 27 April) in order to better manage its exposure in Russia. Dietrofront of Atlantia, among the rumors according to which the Benetton family, together with Blackstone, could launch an offer to increase the hold on the holding and the possibility that the Gip-Brookfield fund consortium will not point to a tug-of-war with the current key shareholders . The situation in China weighs on Moncler, which is exposed to the Asian country as a large part of the luxury sector. Among the industrialists, Interpump Group, Stellantis and Pirelli suffer. In Paris, Societe Generale jumped by 5%, which announced the stop of its activities in Russia and the sale of its stake in Rosbank.

Oil down with China, slightly higher for gas

Crude oil prices fell sharply due to the worsening of the situation in China due to Covid infections: Brent in June fell by 1.6% to 100.96 dollars a barrel, Wti in May by 1.9% in 96.4 dollars a barrel. Slight rise for gas prices to 104.5 euros per megawatt hour (+ 0.6%).

Spread reaches 170 points, ten-year yield rises to 2.42%

Vague trend for the spread between BTp and Bund on the MTS electronic market for European government bonds after the first round of the French presidential elections. The yield differential between the benchmark ten-year BTp (Isin IT0005436693) and the German equivalent maturity reached 170 basis points at the start, from 166 basis points at the final Friday, before settling at 165. The yield of the ten-year benchmark BTp also rises. to 2.42% from the last position to 2.37% of the closing on the eve of the day. The yield on the French ten-year is stable at 1.26 per cent.