Negative ending for the European stock exchanges and for Piazza Affari, with the Ftse Mib down by 1.1% to 26,986 points. Reductions especially for Pirelli (-3.8%), Interpump (-3.6%) and Iveco (-2.6%) while Saipem (+2%), Erg (+1.7%) and Telecom closed against the trend Italy (+1.4%). Tim’s board of directors met today and expressed his appreciation for KKR’s offer but requested an improvement to it within the new deadline of March 31st.
In the bond segment, the Btp-Bund spread is almost stable at 189 basis points with the Italian 10-year yield rising to 4.43%, in line with the other European benchmarks. The US two-year rate rises to 4.81% and the ten-year rate to 3.95%.
On Forex, the euro/dollar exchange rate drops further to 1.055 while the dollar/yen rises above 136 after the first intervention by the next governor of the BoJ, Kazuo Ueda, who confirmed the accommodating line of his predecessor Kuroda.
Among the raw materials, oil is advancing, with Brent close to 83 dollars a barrel.
Overseas Wall Street retreats, with the Nasdaq down by almost two percentage points after the worst-than-expected data on the core PCE, a measure closely monitored by the Fed to assess inflation, which showed an acceleration to 4.7% per annum, well above expectations.
Dynamics that reinforce expectations of a Fed that will remain restrictive for a long time in order to counter persistent pressure on prices. Swap rates imply a peak in the cost of money equal to 5.4% in July and the president of the Cleveland Fed, Loretta Mester, reiterated the need to continue with the tightening.
Finally, focus on geopolitical tensions. The White House will raise tariffs on more than 100 Russian metals, minerals and chemicals, while US Treasury Secretary Janet Yellen warned China and other nations against providing support to Russia, announcing “very serious consequences”.