At the beginning of the first session of the week, the European stock exchanges remain at the window and travel slightly down after yet another positive eighth for the lists. Once again, the issue of inflation is holding back the prices. US Treasury Secretary Janet Yellen hoped that the Biden administration would continue its massive economic recovery plan even if this were to fuel the rise in prices and added that an environment with “slightly higher” rates would represent a ” plus “.
Attention also to the possible reactions of the markets on the preliminary agreement reached within the G7 for a global minimum tax on multinationals. While the main continental markets are down, the FTSE MIB is just below parity, after reaching in the last eighth it reached new highs since October 2008: with the markets closed on Friday, the confirmation of Fitch’s opinion on Italy arrived. with the rating remaining at BBB- and stable outlook. The maintenance of the status quo by the agency was expected.
Tokyo closes higher on G7 news
Tokyo stock market in positive with the Nikkei index closing up 0.27% to 29,019 points, supported by Wall Street and job data in the States. News of the historic agreement that the finance ministers of the G7 countries have reached for the creation of a global minimum rate on companies of at least 15% has supported the markets. On the macroeconomic front, data on China’s trade balance were released, which in May recorded exports that were lower than analysts’ expectations.
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Meanwhile, equity markets finished higher last week, again thanks to a lower than expected figure on the health of the US labor market. The world‘s leading economy created 559,000 new jobs in May against the 650,000 forecast by analysts, for a rate of 5.8 per cent, thus helping to cool the tensions triggered in recent times by fears of a grand return of inflation and due to the consequent slowdown in the support action of central banks.
Piazza Affari took the opportunity to once again exceed the levels reached in the weeks immediately preceding the pandemic. The FTSE MIB index in fact finished at 25,570 points (+ 0.46%), which represents the highest value even since October 2008, the period following the Lehman Brothers crash. Green light also for the other lists of the Old Continent, with Frankfurt up by 0.39%, also at new (historical) highs, Paris at + 0.12%, London at +0.07 per cent. The only exception was Madrid, which suffered a drop of 0.56 percent.
On government bonds, the US data has translated into an almost flat calm, with yields little moved in Europe and also for BTp. Indeed, the Italian ten-year rate dropped slightly to 0.87%, with the spread against the Bund at 108 in view of Fitch’s pronouncement on public debt expected for the evening. The rating agency’s opinion on our country, which was surprisingly lowered last year in April during the hottest days of the pandemic, then remained at “Bbb-“, that is, just one step above the level junk (or garbage).