by Paolo Paronetto and Stefania Blasioli
In Milan, the coupon detachment of Enel and Pirelli weighs 0.38%. Expectation for central banks and quarterly
2′ of reading
(Il Sole 24 Ore Radiocor) – Weak start to the week for European stock exchanges waiting for indications from central bank leaders and a new wave of quarterly accounts. The market expects new rate increases of 25 basis points from the Fed (Wednesday) and the ECB (Thursday) and will focus on the statements of the top management of both institutions to understand if it can consider the current bullish cycle over. On Friday, however, the Bank of Japan is expected to leave its ultra-accommodative policy unchanged. Madrid’s black jersey for the day (IBEX 35) weighed on by the political uncertainty following elections that did not assign clear government majorities. The downturns for Frankfurt were more contained (DAX 40), Paris (CAC 40) and Amsterdam (AEX). Il FTSE MIB of Piazza Affari is in red, but it is weighed down by the coupon detachment of Enel e Pirelli & C, which accounts for 0.3812%. Among the main Milanese titles, remember continues to benefit from the agreement with GSK announced on Friday. Well too Diasorinwhile losing altitude Banca Mps.
Also in evidence in Milan Stellarfollowing the agreement just announced with Samsung for a new gigafactory in the USA to start up in 2027 and with an initial annual production capacity of 34 GWh.
Euro below the 1.12 dollar threshold. Slight decline in oil and gas
On the foreign exchange market, the euro changed hands at 1.1127 dollars from 1.1122 at Friday’s close. The single currency is also worth 157.29 yen (from 157.51), while the dollar/yen ratio is 141.38 (from 141.65). On the energy front, the price of oil dropped slightly: the September delivery contract on Brent dropped 0.48% to 80.68 dollars a barrel and that of the same expiry on the Wti dropped 0.49% to 76.69 dollars. Lastly, the price of natural gas in Amsterdam increased by 1.4% to 28.5 euros per megawatt hour.
Spread with Bund starting at 161 basis points
Negative start to the week for the prices of sovereign government bonds traded on the Mts electronic market. There was an undifferentiated drop in prices with the spread between BTPs and Bunds confirmed at Friday’s levels. After the very first trades, the yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the German bond with the same duration is indicated at 161 basis points, the same level as the closing on 21 July. The fall in prices pushes yields upwards: the 10-year benchmark BTP yields 4.09% from 4.06% at Friday’s final. The Spanish Bonos show no particular reactions to the expected victory of the people in the political elections which, however, did not give a clear majority to the sides in the field. The 10-year Bonos benchmark (31/10/2033) yields 3.45% with a spread over the Bund of 101 basis points.
Tokyo up driven by weak yen (+1.2% Nikkei)
Positive session for the Tokyo Stock Exchange well oriented right from the start thanks to the weakening of the yen against the other major international currencies. The PMI manufacturing figure which showed a slight deterioration in activity in July did not change the course of the Japanese stock market where the large listed car groups aimed decisively upwards. In the end the index NIKKEI 225 of the 225 leading stocks it is indicated at 32,700.94 points, up by 1.2 percent. Also highlighted by the positive effect of the weak yen are the stocks of the electronics and steel sectors.
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Paolo Paronetto
Radiocor editor