Strong European stock markets in the first session of June, driven by oil and commodity stocks and with the market’s attention focused on macroeconomic data, starting with that on European inflation. In Milan, the FTSE MIB reaches its highest levels since October 2008 at 25,480, exceeding the maximum of 25,478 points of 19 February 2020, before the Covid epidemic progressively broke out. Not only that, with this leap the Milan price list is back at levels it hasn’t seen since October 3, 2008, that is, two weeks after the bankruptcy of Lehman Brothers which then triggered a spiral of declines and volatility on the world markets. Meanwhile, the DAX 30 confirms its all-time highs and the CAC 40 those since 2000 (bursting of the New Economy bubble).
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Inflation up 2% in Europe in May
The annual inflation rate continues to rise in May: Eurostat’s flash estimate indicates 2% after 1.6% in April. Energy is expected to have the highest rate of increase (13.1% after 10.4% in April) followed by services (1.1% after 0.9%), non-energy industrial goods (0.7% after 0.4%), food, alcohol and tobacco (0.6%, stable compared to April). If energy is excluded, the inflation rate is 0.9%; if the prices of unprocessed food items are also excluded and alcohol and tobacco are also excluded, the inflation rate always remains at 0.9%. In Italy, the annual inflation rate in May is 1.3% after 1% in April.
European manufacturing at record levels. Also at the top in Italy
Monday, with few exchanges and weak stock exchanges, had been particularly lacking in ideas and was an “orphan” of the London and New York stock exchanges due to a holiday. The numbers of the European manufacturing SME, which rose to a record of 63.1 in May, compared to 62.9 in April, also pushed purchases in the session on Tuesday. “All three subsectors once again recorded strong improvements in operating conditions in May,” Markit reports. According to Chris Williamson, Chief Business Economist at IHS Markit, “Eurozone manufacturing continues to grow at an unprecedented rate in the nearly 24-year history of the survey, with the PMI hitting a new record for the third consecutive month. The growth in production adds signs of an economy that is returning to expand significantly during the second quarter ». In Italy too, the index rose to a record level of 62.3 in May.
The oil and Atlantia stocks run in Piazza Affari. Eyes on takeover bids
In Piazza Affari, oil is leading the increases with Tenaris, Eni and Saipem all gaining more than 1% even if the best is still Atlantia with the sale of Aspi to Cdp-Fondo, which is now close to binding agreements. Good purchases also on Unicredit. On the rest of the price list, public offerings take center stage: Cattolica Ass declines slightly but remains above the price of the Generali offer, Retelit consolidates itself above the takeover bid launched by the Asterion fund.