First part of the session with the minus sign for the European stock exchanges, which are losing share in the wake of the contrasting trends of the Asian markets and with weak American futures, in the aftermath of a day without direction, thanks to fears about inflation and the spread of Delta variant of Covid-19. Thus the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 30 in Frankfurt, the Ftse 100 in London, the IBEX 35 in Madrid and the AEX in Amsterdam are all in red.
Investor sentiment is weighing on directions coming from China, which signal a slowing recovery as the central bank provided additional liquidity to the system. Fed number one Jerome Powell reassured the market on Wednesday by calling rising inflation in the United States transitory (after the above-expected figure in June) and confirming support for the economy, given that the labor market is not still robust enough, but his words weren’t enough to push the markets up. In the afternoon, on the subject of work, the numbers on weekly unemployment benefits. Meanwhile, the quarterly season continues with the data of the big American banks.
In Piazza Affari petroleum under pressure, down the banks
On the Milanese stocks, oil is under observation with the drop in crude oil: in fact, Eni, Saipem and Tenaris are at the bottom of the main list. Atlantia and the banks are also bad. Utilities, however in the red, remain around parity Interpump Group, Amplifon and Recordati.
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The euro / dollar has little movement, oil is still falling
On the currency front, the euro / dollar barely moved to 1.1835 after the drop on the eve of the greenback (from 1.1825). The euro is also worth 130.01 yen (from 130.127), while the dollar / yen ratio is at 109.85 (from 110.03).
Oil still in sharp decline, after rumors of an agreement between the United Arab Emirates and Saudi Arabia on production, which should break the deadlock within the Opec + group. The drop in demand for fuel in the US also weighs heavily, which emerged from the EIA stock report, which is still falling. Brent is at $ 73.78 (-1.3%) while WTI is at $ 72.06 (-1.46%).
Spread up in the 105 points area
Upward trend for the spread between BTp and Bund. The yield differential between the ten-year Italian benchmark (IT0005436693) marks 105 basis points from 102 on the eve. The yield on ten-year Italian bonds rose to 0.72% from the previous 0.71%.
Tokyo closes down on fears of increased infections
The Tokyo Stock Exchange ends the session in decline, while fears of an increase in infections from Covid in the capital re-emerge, almost a week before the Olympics, with the highest level of positivity reached yesterday from mid-May. The Nikkei index marks a decline of 1.15% to 28,279.09, with a loss of 329 points.