Stock market, Europe still chooses caution. Piazza Affari in green with the banks

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(Il Sole 24 Ore Radiocor) – The European stock exchanges still choose caution, waiting for the decisions of central banks on monetary policy. In fact, both the FOMC, the operational arm of the Federal Reserve, and the ECB’s governing council will meet next week. If the market expects a 25 basis point hike for Frankfurt, the Fed’s moves still appear uncertain: most investors expect a pause in rate hikes, but after the labor market data, price numbers will be crucial for consumption on the calendar next Tuesday. Meanwhile, the Central Bank of Canada it unexpectedly raised the cost of money by 25 basis points, as the Australian central bank had already done, adding a further element of uncertainty on the trend of global monetary policies.

In Milan banks in no particular order, energy sources are doing well

At Piazza Affari Stmicroelectronics I lost ground after the good performance on the eve, triggered by the news that the company has launched a $3.4 billion joint venture in China with Sanan Optoelectronics on silicon carbide devices. The banks are opposed, with Banca Mps up after a weak start, with the market continuing to bet that the Sienese bank will soon be the protagonist of extraordinary operations, also to facilitate the Government’s exit from capital, in order to respect the agreements made in Europe. Also highlighted are the Cnh Industrial not Stellar, the latter thanks to the support of the 500 million buyback which started on Wednesday 8 June. They are well set Eni not Enel, both on the rise. Out of the main basket, Lottomatica Group rises after the Buy of Equita.

Crude volatile, gas up. Euros above 1.07 dollars

The volatility continues petrolium after the increases on the eve, after US government data showed a sharp increase in activity by refineries, at the fastest rate since August 2019. The price of TTF gas rose, after +5.9% on the eve on the news of a delay of at least a week in the reopening of the Norwegian plant
Hammerfest Lng. This “unforeseen event will limit supplies from Norway at a time when forecasts point to an increase in European temperatures above the average for the period, with a consequent greater use of electricity for air conditioners”, underline the analysts of MPS Capital Services.

On the currency, buying on the Canadian dollar after the surprise move by the Central Bank. Meanwhile, the euro/dollar remains above 1.07.

Japan’s GDP upward revision

On the economic front, Japanese GDP was revised upwards in the first quarter, with growth reaching 0.7% on a quarterly basis, according to government data, compared to the 0.4% initially estimated. Non-residential investment growth by private businesses was significantly higher than initially expected, suggesting that Japanese companies remain fairly bullish, despite the expected slowdown in the global economy.

Minus sign for the Tokyo Stock Exchange

The Tokyo Stock Exchange ended trading lower, following a mixed close in US stock indices, especially the debacle in the technology sector. The reference index Nikkei dropped 0.85% to 31,641.27, posting a loss of 272 points. On the foreign exchange market, the yen strengthened against the dollar to 139.70 and 149.60 against the euro. The Hong Kong Stock Exchange opened the session in negative territory: the Hang Seng index dropped 0.13%, slipping to 19,227.84 points. As for the Chinese Stock Exchanges, the opening of the session dropped slightly: the Shanghai Composite index dropped by 0.09%, to 3,194.83 points, while that of Shenzhen lost 0.04% and stood at 1,994, 49.

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