(Il Sole 24 Ore Radiocor) – In the aftermath of a subdued session and after the run of the previous eighth, the European stock markets are traveling in a cautious upward trend, with their eyes focused on the American quarterly reports – Bank of America, Goldman Sachs and Netflix in particular are expected – to understand what the effects of restrictive monetary policies on companies. Thus the FTSE MIB of Milan, the CAC 40 of Paris, the DAX 40 of Frankfurt, the IBEX 35 of Madrid, the AEX of Amsterdam and the FT-SE 100 of London rise.
Attention is always focused on the next moves of central banks, but optimism is encouraged better than expected data on Chinese GDP (grown by 4.5% in the first quarter) after 2.9) in the previous quarter. “China is the world‘s second largest economy, with 19% of global GDP, and is the only major economy expected to grow more this year than last year. This is a great insurance policy against a global recession,” eToro analysts say. On the European macro front, pay attention to the index German Zew, which dropped to 4.1 points in April (from 13 of the previous month).
Eyes on Telecom with funds moves, focus on banks
On the Milanese stock, the increases are led by Amplifon, after Demant increased its guidance for the current year, and by Prysmian, which benefits from the positive opinion of Morgan Stanley. In line Leonardo – Finmeccanica, energy and utilities. To be monitored Telecom Italia with Kkr and Macquire ready for a new round of offers which should in any case always be lower than Vivendi’s requests. Attention also to banks, while risk hypotheses are returning to the sector with Banco Bpm which, according to rumors, could again be in Unicredit’s sights: Equita analysts believe that the operation “would have a strong industrial rationale and in addition it would push the ‘earnings per share, over 15% after synergies’. Off the main list, Illimity Bank rises after announcing an industrial collaboration agreement with Engineering. Caution on Brunello Cucinelli, who announces the numbers for the first quarter.
Slightly moved spread, slightly decreasing 10-year yield
Negative performance for the entire fixed income sector on the Mts secondary market with the consequence that the spread between Btp and Bund does not move from the levels of the final on Monday. The yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the same German maturity is indicated at 184 basis points, the same level as the previous day’s closing. The sales on sovereign fixed income in the Eurozone hit indiscriminately and are causing a slight rise in yields: the Italian 10-year yields 4.33% from 4.32% on the eve (4.28% last week).
Euro strengthens against the dollar, oil and gas prices on the rise
On the currency market, the euro rose against the dollar to 1.094 (from 1.0919 at Monday’s close). The single currency is also worth 147 yen (from 146.85), while the dollar/yen ratio is at 134.35 (134.48). The price of natural gas for May on the Amsterdam TTF platform rose slightly to 41.52 euros per MWh (+0.9%) while oil benefits from Chinese GDP: the May future on the WTI shows +0.4% to 81 16 dollars a barrel and June Brent is trading at 85.2 dollars (+0.5 percent).