MILANO – It specter of rising inflation continues to disturb the mood of the markets. European stocks traded lower during the morning – after yesterday’s Wall Street closed in red on the back of the data onprice increase in April, higher than expected – but they recovered from the lows to close little moves, thanks to the rebound of Wall Street.
At the end of the day, Milano thus marked an increase of 0.14%, Paris rose by 0.14%, Frankfurt 0.33% e London it remained in the red by 0.59%. At the end of trading in the Old Continent, as mentioned, the US indices recovered ground after the strong sales of the eve: the Dow Jones rose by 1.3%, the Nasdaq rose by 0.65% and the S & P500 by 1%.
Investors are worried that overheating inflation could push central banks to reduce their monetary stimulus, a scenario that the market would like to avoid in every way. Fears that had already been seen in Asian exchanges, where Tokyo closed the session with a heavy -2.49%.
Other signs of recovery came from the US today, with the number of new applications for weekly unemployment benefits down to 473,000 from 566,000 the previous week (revised up from the initial 498,000). Analysts had expected a more contained decline to 490,000 units. The data on producer prices, which rose by 0.6% in April against estimates of + 0.3%, was higher than expected.
Among currencies, theeuro closed slightly below 1.21 dollars. The European currency changes hands at 1.2071 dollars and 132.25 yen. Dollar / yen rises to 109.58. The Treasury held the auction of BTP with the fifth tranche of the 3-year bond maturing 15/04/2024 for 3 billion against a request of 4.228 billion. The yield rose by 11 cents to -0.06%. The first tranche of the new 7-year BTP benchmark maturing 15/07/2028 was also placed: against requests for 6,080 billion the amount issued was equal to 4.5 billion while the yield stood at 0.69%. Finally, the fourth tranche of the 30-year BTP expiring on 01/09/2051 was assigned for 1.75 billion against a total demand of 2.269 billion and achieved a gross yield of 2.06%. The auction regulation falls on May 17th. It goes up spread between BTP and German Bund, which during the day reaches 120 basis points and then closes at 117 with the 10-year yield at 1.06%.
On the raw materials front, the Petroleum at the end of the day it fell by 3% with WTI at 64 dollars and Brent at 67.4.
– .
