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(Il Sole 24 Ore Radiocor) – European stock markets at their highs for the day after the mid-session, with investors betting on a slowdown in US inflation that will strengthen expectations of less restrictive monetary policies. Consumer prices are expected to grow by 3.1% in June from +4% in May, as prices are also expected to cool down for the core data. The market is betting that the 25 basis point rise in the cost of money in July, now taken for granted, is the last of the cycle. In the evening, then, the indications of the Fed’s Beige Book will also arrive, another key element of the session.
So the FTSE MIB of Milan is the best, followed by CAC 40 of Paris, the DAX 40 of Frankfurt, theIBEX 35 in Madrid, l’AEX of Amsterdam and the FT-SE 100 from London. This, if confirmed, is the fourth consecutive session of increases for Europe. Purchases are concentrated on tech, in the wake of the performance of the sector in China and with the optimistic forecasts of a report by Jefferies analysts on semiconductors. Wall Street futures rose, while we are already looking at the start of the quarterly season, which will get underway on Friday with the big banks.
The euro / dollar exchange
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At the top of Ftse Mib St, eyes on the banks
On the Milanese share, it clicks Stmicroelectronics and collects the positive judgment of Jefferies. Well Stellarpositive the banks, with Banca Pop Er accelerated and bpm bank after granting the exclusive right to FSI for the creation of a partnership in the e-money business. Weak I connected, which was among the candidates for the partnership. salt Telecom Italia after announcing its intention to issue a new 5-year bond in euro to refinance all or part of the 2024 maturities. Back to list David Campariwith Citi cutting the rating to neutral.
Spread up to 177 points, yield down to 4.37%
Spread slightly up to 177 points Very slightly up trend for the spread between BTPs and Bunds. The yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the German bond with the same duration is indicated at 176 basis points, compared to 177 at the closing date. The yield on the ten-year Italian BTP narrows to 4.37%, after finishing the previous session up at 4.41 percent.
Overall, Eurozone sovereign bond spreads should remain close to current levels, but an early start of quantitative tightening under the European Central Bank’s Pandemic Emergency Purchase Program is a risk, say Natixis rate strategists. “There is a fairly high risk of advanced discussions for a QT PEPP, which could start in early 2024,” write Benoit Gerard and Theophile Legrand in a note.
2023-07-12 10:41:15
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