October 3, 2022

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Piazza Avary “Black Shirt” of the Week in Europe, FTC -2.3%

(Il Sole 24 Ore Radiocor)Milan is the worst stock exchange in the old continent in the last week of trading. In fact, the Ftse Mib, after its Easter close, lost 2.3% overall over the next four sessions (April 19-22), sliding towards the end due to the Fed’s acceleration in interest rates. Not so for the rest of the European listings which closed a week in “red” but this time capped losses. After Piazza Avary, at the bottom of the ranking is London (-1.2%) while the others record minor commitments, from Madrid (-0.5%) to Frankfurt (-0.2%), even close to parity Paris (-0.1%), awaiting the second round of The presidential election, with Emmanuel Macron leading in the opinion polls over her rival Marine Le Pen. Looking at the individual stocks of Milan’s main list, the best is Saipem (+6.9%), thanks to the quarterly report that exceeds expectations and confirms the 2022 guidance announced a month ago in the market, along with Pirelli (+4), 4%) and the Italian-French Saint Group (+3.3%). On the other hand, forget a week for Tim (-7.1%) suffering from the interest of various funds and the complex operation of off-grid hashing. Finally, also negative results for Stellantis (-6.8%) and Banca Mediolanum (-5.9%).

Powell’s powerful punch against inflation flips the lists

intention Jerome Powell Action on interest rates ‘slightly faster’ than expected sent stock markets into a tailspin, from Europe to Wall Street, in the session on Friday, April 22nd, rather than the firm fist announced by the Federal Reserve chair against inflation. The impending tightening of monetary policy, which may be the fastest in the United States since 1982, combined with uncertainty about the strength of the economic recovery, weakened by the war in Ukraine and the closure of Shanghai in China, has brought the main lists of European Union member states. The old continent closed without exception with losses between 1 and 2%: Paris -1.99%, Frankfurt -2.48%, Amsterdam -1.62%. To influence the mood of the markets also on a quarterly basis in the chiaroscuro of US companies and the continued increase in Treasury yields. in this climate, In Avary Ftse Mib At the end of the day it lost 2.12% as investors wait for the outcome of the sovereign rating review by the S&P (which will only be announced in the evening).

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Wall Street is moving in red

Wall Street is falling, following the decisive drops of yesterday’s session, Thursday, April 21st. To assess the words of Jerome Powell and the increase in yields on Treasuries. Many analysts believe that the Fed will raise interest rates by 50 basis points in the next three meetings, but some do not rule out a 75 basis point rate hike in May. At the last meeting of the Federal Reserve, interest rates were raised (by 25 basis points) for the first time since the end of 2018. Moving on to bonds, the yield on 5-year bonds rose above 3%, outpacing the bond yield. 30 years: curve inversion indicates concerns about economic growth; The 10-year note is also close to its highest since the end of 2018, with a yield of over 2.91 percent.

Strong gains on Saipem in Milan, on Banco Bpm parity

On Friday, April 22nd session, among the major stocks in Milan, the worst was Saipem (-7.54%) which pared gains after the double-digit jump on the eve (+11.8%) on a complex day for the energy sector, penalized by a drop in oil. Also on the worst podium are Tim (-4.37%) and CNH (-4.35%). Ferrari sales (-3.5%) will recall 2,222 cars in China due to potential brake problems. Among the few in contrast, Hera (+0.47%) with Banco Bpm on par (-0.03%%), after a positive session, began evaluating incoming offers for the Bancassurance business. The session was also negative for Iveco Group (-3.8%), Interpump (-3.4%), Stellantis (-3.2%) and holding company Exor (-3%). On the oil front, sales were also hit by Eni (-3%) and Tenaris (-2.7%).

Spread up to 170 basis points, 10-year yield of 2.67%

Closing of the spread between BTp and Bund. At the end of the session, the yield differential between the ten-year BTp benchmark (Isin IT0005436693) and the same German maturity was noted at 170 basis points, three points more than 167 basis points from yesterday’s close. Most sensitive was the rally in the benchmark 10-year BTp yield which closed at 2.67% after hitting the last position yesterday at 2.58%.