The mixed signals on the possibility of an economic recovery without an overheating of inflation advise caution to the European stock exchanges, which are moving around parity in the aftermath of the new records set by Wall Street. While Federal Reserve Chairman Jerome Powell threw water on the fire over fears of excessive price growth, which would force central banks to pull back current ultra-accommodative policies sooner than expected, the latest data from China have highlighted that in March, inflation began to rise again for the first time since the beginning of the year, with producer prices having recorded the largest increase in almost three years. The Milanese FTSE MIB is up slightly, driven by purchases on Atlantia after yesterday the board of directors began examining the offer presented by Cdp, Blackstone and Macquarie for 88% of Autostrade per l’Italia. The board then announced that it will analyze the proposal made by Acs, which values Aspi between 9 and 10 billion.
Among the stocks with the largest capitalization of Piazza Affari, banks are mixed, while Pirelli & C is above par, while investors are taking a cue from the 2023 targets announced yesterday by Michelin to estimate the market prospects.
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Spread slightly up, euro / dollar little moved
On bonds, there was a slight increase due to the spread between BTp and Bund on the secondary MTS market for government bonds. The yield differential between the ten-year benchmark BTp and the same German duration is indicated at 101 basis points from the 100 points of the previous reference. The yield of the benchmark ten-year BTp, indicated at 0.69%, also increased from the 0.67% recorded at the closing on the eve of the day.
On the foreign exchange market, the euro / dollar did not move around 1.19. The single European currency is worth 1.1898 dollars from 1.1901 yesterday closing and 130.28 yen (from 130.04), while the dollar / yen ratio is at 109.49 (109.25). The price of oil is below par after new data on the spread of the pandemic in key countries such as India curb producers’ hopes to increase output in July: the May wti future marks -0.03% to 59.58 dollars a barrel, while the June delivery on brent slips by 0.17% to 63.09 dollars.
(Il Sole 24 Ore Radiocor)