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(Il Sole 24 Ore Radiocor) – Positive closing for the European Stock Exchanges, which snubbed the hawkish words pronounced both by the number one of the European Central Bank, Christine Lagarde, and by the president of the Federal Reserve, Jerome Powell. The bankers, meeting in Sintra in Portugal, both said that there is still a long way to go to fight inflation and so they announced new interest rate hikes. The markets, however, have already metabolized this scenario. So Milan closed up by 0.86%, with the spread at 165.7 points (from 163 points on the eve) and the yield on ten-year BTPs at 3.97% (from 3.99%). In the rest of Europe, Frankfurt gained 0.64%, Paris 0.98%, Amsterdam 0.95% and Madrid 0.94%. Finally, London rose by 0.52%. In the city, Revolution Beauty has been readmitted to listings, suspended since last September due to doubts about the company’s accounts. The shares, although flying by 40%, stand at prices 80% lower than those of the company’s placement, which took place in July 2021.
Powell and Lagarde, continue with rate hikes
European stocks opened positive and held higher throughout the day, despite Wall Street’s weak start. The American market, however, is trying to reverse course, with the Nasdaq in positive territory. On the other hand, it is heading towards a substantial monthly gain, between 2.5% and 3%. Overseas, however, investors have embraced a more cautious attitude not so much because of Powell’s indications on new interest rate hikes, now taken for granted, but because of the news spread by the media that new bans on exports to China could be introduced of chips to be used for artificial intelligence. However, this would further exacerbate tensions between the US and China. Chip makers, from Nvidia to AMD, are paying for it. By contrast, Apple has updated new records, with the company’s capitalization now approaching 3 trillion dollars. In Europe, the indices have not been shaken after Lagarde has reaffirmed the hard line to fight inflation. A line which, as already mentioned on the eve, will involve a rise in rates in July. Lagarde, on the other hand, remained unbalanced on the moves of the Eurotower in the month of September, explaining that the decisions of the central bank will depend on the macro data. However, he reiterated that there is still a long way to go to fight inflation. A thought also shared by Powell, who also recalled that the Fomc is planning two hikes in US rates by the end of the year. The banker didn’t even rule out a recession, although he stressed that it shouldn’t be the most likely scenario.
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London FTSE 100 index
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In Milan, Tim and Prysmian run
Telecom Italia companies surged in Milan (+3.5%), with the market ready to bet on imminent news on the network dossier. Prysmian companies also stood out (+3.1%), driven by the declarations of the future CEO, Massimo Battaini. «We are leaders and we want to remain so, if the market doubles we will double: we are going from a level that was historically 250 million capex per year, dedicated to all company growth activities, to 500 million this year , and this will be necessary for the next four or five years at least, if not beyond, to follow the incremental market demand», he declared during the presentation of the group’s sustainability plan. Among other things, the manager commented that the extraordinary operations are «a distinctive factor of the new scenario and the new organic vision of the company. If in the past we had more important leadership on the ‘sizeable’ in America, as well as in Europe, the new vision envisages strong organic growth and M&As not aimed at reaping synergies from restructuring or integration, but at growing on products that we do not already have , or complementary, and on geographies in which we are not present».
St pushed by Barclays, Iveco swerves
Stmicroelectronics benefited from a favorable report from Barclays, which recommended an ‘outperform’ on shares with a target price much higher than stock market prices and equal to 65 euros (the shares closed at 44.3 euros). According to the experts of the overseas bank, the company will publish a “strong” quarterly report. Leonardo – Finmeccanica gained 1.38%, while an agreement on the new contract between the unions and the US Spirit AeroSystems (supplier, as well as the ‘ex Finmeccanica, of components for Boeing). Iveco Group (-0.5%) skidded on the day of surprise news that its chief financial officer, Francesco Tanzi, will be leaving the company, taking up a new job in another industry sector by the end of the third quarter of this year. The company is looking for a replacement. The Ferraris also stood out (+2.6%), which have now boasted an increase of around 43% since the beginning of the year. If Diasorin (+2.15%) stood out, the banks recorded a subdued performance, with Intesa Sanpaolo and Unicredit remaining in the starting blocks.
Trend of the Btp / Bund spread
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The euro maintains its level at 1.09 dollars, while oil is up sharply
On the foreign exchange market, the euro changed hands at 1.0915 dollars (from 1.0955 at yesterday’s close) and at 157.41 yen (157.793), while the dollar/yen exchange rate was at 144.22 (144.022), with the Japanese authorities ready to intervene to avoid further devaluation of the currency. Gas is worth 33.9 euros per MWh, down 1.7%. Oil has changed direction several times, to then take the upward road with conviction: the August future on the WTI gains 2.38% to 69.31 dollars a barrel.