MILANO – Volatile day with small changes, but oriented towards weakness, for Western markets. Yesterday Europe closed with a good rise and Milan, despite the ongoing government crisis, saw Piazza Affari rise and the spread fall: the wait for tomorrow dominates, decisive for the fate of Draghi, moreover Thursday will be the turn of the ECB with its anti-spread shield. Last night though Wall Street turned lower after Bloomberg reported Apple’s intention to slow hiring and investment plans – a caution linked to the economic scenario that is expected to slow for the foreseeable future.
The news is linked to that of many other Big techs, from Facebook to Google, which have adopted similar measures to slow down expenses to cope with a less favorable climate than in the past. “In the coming weeks, the stocks that will come from the companies will really guide the activity of the markets,” Anthony Saglimbene, global market strategist at Ameriprise Financial, explained to the financial agency. The focus is on understanding how labor costs and production costs in general, on the one hand, and demand on the other, are driving business results. Investors’ attention in Europe will then remain focused on Thursday, when the Eurotower board will raise rates for the first time in over 10 years and will clarify the details of the anti-spread shield. From this point of view there should be no big surprises. Also Olli Rehn last Friday reiterated that the tightening should be a quarter of a point in July and 0.50% in September, and then continue gradually until the end of the year. Also awaited for the presentation (scheduled for Wednesday) of the European plan for the gas emergency.
Among other items, theeuro changes hands stable on the dollar just above par while the Petroleum is confirmed above the $ 100 threshold.
In Asia, the Central Bank of China injected 7 billion yuan, about $ 1.04 billion, of liquidity in repurchase agreements to maintain liquidity in the banking system. The seven-day interest rate was set at 2.1%.
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Asia, Tokyo closes up 0.6%
Government, Sangalli (Confcommercio): “Economic crisis risk, Draghi continue”
“Consumption is slowing down, inflation is rising, the conflict in Ukraine continues and concerns the prospect of monetary restrictions. In this context, the political crisis risks having a heavy impact on the economic one. Instead, Draghi’s leadership and action are needed. increasingly effective government to better manage the resources of the PNRR, the budget law and the structural reforms that the country awaits “. This is what the President of Confcommercio, Carlo Sangalli, said, commenting on the economic data released this morning by the Confederation.
Oil travels positively
After yesterday’s strong rally, oil prices had weakened during the Asian session as recession fears outweighed concerns over supply shortages. But now they have reversed course and are traveling positive with Brent advancing 0.47% to $ 106.77 a barrel while WTI futures gain 0.56% and are trading at $ 103.17 a barrel. Tensions over the gas supply problems from Russia are again felt on the market, after Gazprom declared force majeure due to the stop to supplies to Germany, as confirmed by the German Rwe.
The decline in the dollar, which had exceeded parity with the euro during the week, also helps prices recover. On the other hand, there was no effect on the market from the visit of US President Biden to Saudi Arabia, who postponed the decisions on increasing production to the OPEC + meeting, and from the announcement of the resumption of production in Libya.
Edf surges up on the government takeover bid
The shares of EDF, suspended on the stock exchange since 13 July at the request of the same French energy giant, resumed their prices today and the share jumped to about 15%, close to the sale price proposed by the state in the context of its public offer. purchase (takeover bid). At around 9:15 am, the stock rose 14.87% to € 11.75, in a market down 0.55%. The French state, which already owns 84% of EDF, intends to renationalise the group by buying the remaining 15.9% at the price of 12 euros per share.
Volatile start-up for exchanges, minimal changes
Beginning of a volatile session for the stock market which, after initial prices in sharp decline, returned to near parity in a few minutes. The Ftse Mib index thus marks a -0.22% to 21,123 points, along the lines of the other European stock exchanges. After yesterday’s recovery, Piazza Affari continues at a slower pace, affected by the decline on Wall Street and the wait for the ECB meeting on Thursday. Banks remain positive on the list, with Intesa + 1.1%, Bpm + 0.8% and Bper + 1%, in addition to Unicredit + 1.1%. Little moved the other financials.
In the rest of Europe, trade is slightly down, in line with Milan. London lost 0.5%, Frankfurt 0.65% and Paris 0.7%.
Confcommercio, economy worsens. GDP July -0.6%
War, tensions on raw materials, inflation and monetary tightening translate into “a progressive reduction of GDP in economic terms” and in July a decline of 0.6% is estimated over June and zero growth in the annual comparison “. Confcommercio’s research office highlights a worrying climate of uncertainty linked to many factors, argues that “the political crisis we are experiencing at the moment in which we draw up this note does not facilitate the propensities to consume and invest.” balances, the consumption indicator stops at + 0.7% on an annual basis.
The spread between ten-year BTPs and German Bund counterparts opens slightly up to 218.1 points after closing yesterday at 216 points in a day characterized by strong volatility. The expectations are all for Thursday when the ECB will have to clarify the details of the new anti-fragmentation shield. Among the operators there is also greater optimism on the possibility that Mario Draghi will continue to lead the government and be able to avoid the crisis. The yield on Italian bonds stood at 3.357%.
Asia, Tokyo closes up 0.6%
Closing up for the Tokyo Stock Exchange: the Nikkei index closed trading gaining 0.6% to 26961.68 points. The financial center, after observing a public holiday in Japan, has delayed metabolizing the reassuring indicators on the state of health of the American economy released last Friday, despite yesterday’s Wall Street closing slightly lower. Stronger-than-expected US retail sales growth indicators and the sharp slowdown in US import prices in June therefore positively impacted Tokyo.
Oil above $ 100, gold stable
Among the raw materials, the Petroleum it is falling but still ‘strong’, above 100 euros, at the start of the day after a flare-up in prices last night in New York. The WTI is trading at 102.39 dollars a barrel (-0.20%) while the Brent is at 105.88 dollars, down 0.37%.
Oro stable at the start of trading: it is trading at $ 1,710 an ounce, up by 0.05%.
United Kingdom, stable unemployment. Wages are slowing down
The unemployment rate in Great Britain remained stable at 3.8% in the three months to May, against expectations of a slight increase of 0.1%. The number of employed persons also rises, suggesting that the squeeze on the cost of living has not yet hit the labor market: the increase of 296,000 people in employment represents the largest increase since last summer. But growth in total wages, including bonuses, slowed to 6.2% from 6.8%. Meanwhile, the UK central bank is expected to raise interest rates for the sixth time since December at the August 4 meeting, but it is still unknown how strong the squeeze will be.
Euro stable against dollar, slightly higher futures for Piazza Affari
Calm down on the European financial markets just minutes away from trading. Euro stable against the dollar. At the start of the day it is trading at 1.0148, up by 0.05%. On the yen it is at 139.96 down by 0.11%.
The session in Piazza Affari promises to be positive. Futures contracts on the month of September for the Ftse Mib index gain 0.11%. Conversely, similar contracts on other European indices, with increases for Paris (+ 0.11%), London (+ 0.12%) and Madrid (+ 0.04%), while futures on Frankfurt sell (-0, 06%). Futures on US indices were up by about 0.2%.