Tim bounces back in Piazza Affari. Banks down
Among the main Milanese stocks, Interpump Group confirms the increases following the announcement of the better-than-expected quarterly report. Telecom Italia recovers ground after the CEO of Cdp, Dario Scannapieco, confirmed that the Cassa does not intend to withdraw the offer for the network. Stellantis is also doing well. Leonardo stands out in a lively defense and aerospace sector on all price lists, while Tenaris is benefiting from the positive reaction of the shares of the French competitor Vallourec to the quarterly results.
The banks, on the other hand, are weak, with Banca Generalii and Banco Bpm suffering, also realized on Banca Mps at the end of the main list after the rally on the eve. Diasorin is also in red.
On the other lists, a difficult day for the shares of the financial market management companies: the English London Stock Exchange is paying for the placement of almost 6% of its capital by a consortium of shareholders led by the Blackstone fund, Euronext (the group of which Borsa Italiana is a part) is discounting the downturn in quarterly results, Deutsche Boerse, which today trades ex-dividend, is still hit by sales after the announcement of the acquisition of the Danish SimCorp.
Safe haven currency dollar, euro at lowest since March
In terms of currency, the dollar remains strong which, despite the specter of an American default, benefits from its status as a safe haven currency and remains at its highest level for five weeks. The euro/dollar therefore remains below 1.09, at its lowest level since the end of March. «The standoff between Democrats and Republicans debt burden is set to continue and, if not resolved, could have serious consequences for the US and global economy,” ActivTrades analysts say. In this context, “the demand for dollars is increasing, as increasingly anxious investors seek refuge in them”. Meanwhile, officials of the Federal Reservepublicly speaking, they alluded to the persistence of inflation and refused to completely discount the possibility of further interest rate hikes this year, “further strengthening the dollar’s appeal,” they conclude.
Oil recovers despite surprise jump in US inventories
Oil prices recovered, initially slowed down first by doubts about the Chinese economic recovery after lower-than-estimates data on Chinese industrial production published the day before and then by the surge in US inventories. “The weakness of raw materials has also infected oil despite the upward revision of the estimates on global demand for 2023 by the IEA, thanks to expectations of strong Chinese demand”, comment the analysts of MPS Capital Services. «However – they add – the agency also estimated that Russia would not have cut production in April as promised (only 200,000 b/d against 500,000 targets). This indication would be consistent with the 4-week average of Russian exports by sea, which has risen to a new high,” they explain.
Last week, oil inventories in the United States increased, contrary to expectations. An increase of 5.04 million barrels was recorded to 467.624 million units, according to data released by the Department of Energy, against expectations for a decrease of 0.8 million barrels.