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European stock markets shy, Tokyo +2.5% after Boj’s turnaround

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(Il Sole 24 Or Radiocor) – the European stock exchanges On the rise and consolidation of pre-war highs in Ukraine, after +10% achieved since the beginning of 2023 by Euro Stoxx 50. And above par, FTSEMIB From Milan, which returns more than 26,000 points, the CAC 40 paris f Dax 40 From Frankfurt, while traveling at a faster paceIBEX 35 Madrid fAEX extension Amsterdam. carry FT-SE 100 London after inflation slowed in December (+10.5% y/y, from +10.7% in November).

In the Sitting on Tuesday Support came from rumors that the European Central Bank may slow the pace of monetary tightening after raising interest rates by 50 basis points. For this reason, eyes are focused more than ever on central banks: before the opening of European markets, it was the role of central banks The Bank of Japan, contrary to the signals given in December, decided to leave expansionary monetary policy unchanged, With the decline of the yen against the dollar, while the consolidation of decline in yields in the bond market. Investors expected the institution to widen the range of long-term bond yields further after its surprise decision last month, underlining its willingness to gradually change accommodative policy between now and the end of the current government mandate, the current governor Kuroda, which expires in early April.

FTSE Mib Stock Exchange Performance


Highlighting inflation and central banks

In recent weeks (especially in Europe) lower gas prices have significantly lowered inflation expectations. The inflation swaps estimated at the end of 2022 that European inflation in one year would have been 4.50%, while current estimates have been cut to 2.43%. This convinced the market, despite the “hawkish” statements of the ECB, that the ECB may soon reduce the pace of interest rate hikes, contrary to what it continues to say. Tuesday evening, as we mentioned, the opening half has come to change course: Bloomberg actually indicated – from anonymous sources – that the European Central Bank could slow the pace of rate hikes after the next hike of 50 basis points until February. Much will depend on inflation data.

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Landmarks in Milan’s banks and oil companies

In Piazza Avari, the banks stand out, with Bpm Bank And Bob Air Bankand oil (Tenaris And Saipem). Keep running Telecom Italia On the day when the Board of Directors will begin discussions on the update of the industrial scheme to be presented in mid-February: It will also be the first meeting of the Board of Directors after the resignation of the Board of Directors of Vivendi, the main shareholder of the telecom group. in red Pirelli and C and utilities. flat generals: According to press rumors, the company is interested in selling some assets by American Liberty Mutual in South America and Europe (Spain, Portugal and Ireland). increasing azimuthwhich announced its targets for 2023 with net inflows of 6-8 billion and profits of at least 450 million.

Btp/bund spread trend


Fixed spread at 180 pips, 10-year low yield

The unchanged trend of spreads between BTPs and Bunds, with the yield on the 10-year benchmark continuing to decline after a one-month low on the eve of rumors about a slowdown in the ECB’s rate hike. The yield differential between the 10-year benchmarks for Germany and Italy stands at 180 basis points, the same level as the previous close. The yield on the Italian 10-year bond declined, pointing to 3.87% from the previous 3.89%.

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