(Il Sole 24 Ore Radiocor Plus) – European stock exchanges are in sharp decline, after the slowdown recorded on Friday 21st and awaiting the announcements of the Federal Reserve. The two-day meeting of the FOMC, the operating arm of the Fed, scheduled for Tuesday and Wednesday will guide the week of financial markets. Analysts believe the central bank will opt for the status quo, but should provide guidance on the moves in March, when the cost of borrowing is expected to be revised up, perhaps as much as 50 points.
The director of the International Monetary Fund, Kristalina Georgieva, stressed that it is “extremely important” that the Fed clearly communicates its monetary policy plans to avoid surprises, underlining that the increase in interest rates by the US institution could “cool” the already weak economic recovery. of some countries. Meanwhile, investors prefer to lighten their positions. Last Friday Wall Street suffered a sharp decline, especially at the Nasdaq level which lost 2.7% in a single session and 7.6% over the past week. However, the indication of the World Health Organization, according to which the Omicron variant could represent the end of the pandemic in Europe, bodes well.
Milan moves back in the FTSE MIB and also suffers from the technical effect due to the distribution of dividends by two big names like Enel and Snam. Frankfurt (DAX 30), Paris (CAC 40) and Madrid (IBEX 35) also fell by half a percentage point.
In Milan, focus on telecommunications, Eni brings Var Energi to the stock exchange
In Piazza Affari, the day of detachment of the interim dividends for Enel and Snam. Enel will detach 19 cents per share (for a yield of 2.7% on the closing price of Friday 21st), Snam of 0.1048 (2.05%). Attention on Eni, after the announcement that the subsidiary Var Energi AS will be listed on the Oslo Stock Exchange. The operation is part of Eni’s strategy of enhancing its assets in order to free up new resources to be allocated for the acceleration of the energy transition strategy. Eyes also focused on Telecom Italia, after Pietro Labriola was appointed CEO in recent days and waiting for Iliad to reveal its entry into fixed and fiber. But the telecommunications sector is in the spotlight above all due to rumors relating to the possible combination of Italian activities by Iliad and of Vodafone.
BTp, spreads and stable returns looking at the Quirinale
The spread between BTp and Bund is stable, which for the moment is not affected by the uncertainty of the Italian political framework: the process for the election of the President of the Republic officially opens. The yield differential between the ten-year Italian benchmark (IT0005436693) and the same German maturity stands at 141 basis points, unchanged with respect to the previous reference. There was a slight decline in the yield of the benchmark ten-year BTp which stood at 1.35% from 1.36% at the closing on Friday 21 January.