MILAN – The markets are restarting in the wake of Friday evening’s positive results on Wall Street and with the prospects of intervention by the central banks – called to reverse the monetary tightening in the coming months – still dominating the scene. Middle Eastern geopolitical tensions remain in the background, with oil retracing after the latest surge. Trade in Asia was positive, while the Chinese Central Bank continues to try to stabilize the yuan after the recent depreciation and keeps the fixing band stable.
As mentioned, the focus remains on the rate reduction trajectory. Bloomberg notes that in Europe there is already discussion about the speed of the cuts by the ECB: on Thursday at the meeting of the Directorate of the European Central Bank there will be no decisions on rates, but it seems that attention is already focused on June and on the doubt whether to go forward in succession or take more time. A different panorama from that of the Fed, where the strength of the US economy has brought Treasury yields to their highest levels since November. The next event circled in red is the release of US inflation data, coming on Wednesday.
Europe is moving upwards
After an uncertain start, European stock markets are moving cautiously higher with purchases focusing on car stocks (+0.6% the Stoxx sub-index) and raw materials (+0.74%). In the business market the FTSE MIB rises by 0.22%, while in the rest of the old continent Frankfurt marks +0.45%, Paris +0.55% and Amsterdam +0.23%, while London remains behind at -0.17 %. Among the main Milanese stocks, Interpump (+2.66%), Diasorin (+2.26%) and Iveco (+1.85%) stand out, while Mps (-1.31%) and Banco lose ground. Bpm (-0.64%).
Yellen: “Overcapacity is not anti-China”
The problem of China’s productive overcapacity “is not linked to an anti-China sentiment or the desire for decoupling, but reflects the need to resolve structural issues in the economy that fuel concerns in the US and its developed or developing allies and partners. development” on a global scale. US Treasury Secretary Janet Yellen said this during the press conference in Beijing at the end of her mission in China.
Btp-Bund spread stable at 139 points
Stable opening for the spread between BTPs and Bunds. At the beginning of the day the yield differential stood at 139 basis points, the same level as the last closing. However, the yield of the benchmark ten-year BTP rose, marking a first position at 3.82%, from the 3.78% of the previous reference. The yield on the German Bund rises from 2.38 to 2.43 percent.
Initial phases slightly rising for Piazza Affari
Weak first phases in Piazza Affari with the Ftse Mib at +0.26% at 34,098 points. The financials were positive (Unicredit +0.27%, Intesa Sanpaolo +0.36%, Generali +0.14%) and the industrials with Stellantis at +0.06% and Pirelli +1.11%. Among the main energy companies, Enel was flat and Eni fell by 0.45%. Tim finally gains 0.58%.
Gold breaks records again
The rise of gold does not stop, reaching new highs, with investors looking to data on American inflation to “guess” the Federal Reserve’s next moves. Furthermore, the increase in geopolitical tensions makes the precious metal more attractive, because it is considered safer. Thus June gold futures reached a record of 2,372.45 dollars an ounce, before falling slightly (currently changing hands at 2,358 dollars). The spot contract reached a high of $2,353.95 and is currently trading at $2,335.
Tokyo closes up 0.9%
The Tokyo Stock Exchange concludes the first session of the week on the rise, following the consolidation of US stock indices with investors returning to the market after recent declines. The Nikkei reference price list increased by 0.91% to 39,347.04, with a gain of 354 points. On the currency front, the yen depreciated again against the dollar at 151.80, and against the euro at 164.40.
Tim after the interview with Paolucci: “Sustainable with network transfer”
Tim says it will be sustainable after the network is sold and the transaction is “fairly valued.” He does so by responding to Umberto Paolucci, listed as president in the Merlyn list, who was interviewed on Saturday by Republic. Tim confirms that “the transaction values envisaged in the sale of Netco are correct as confirmed by leading independent banking and strategic consultancy institutions; the financial and industrial sustainability of the company after the sale of fixed network assets is clearly expressed by the data disclosed on 6 March 2024 with leverage expected in 2026 at 1.6-1.7x, without considering the potential upside of up to 4 billion euros, deriving from the earnouts for Netco and the possible sale of Sparkle”. Furthermore, the contract signed with Optics Bidco (a subsidiary of KKR) “is binding and there are currently no delays with respect to its scheduled execution by the summer”. Tim “has already implemented all the financial initiatives (most recently with the signing of a 1.5 billion euro bridge financing contract announced last Friday) and planning to deal with any scenario. The company has given a mandate to its lawyers to report the facts set out above to the competent authorities for the consequent fulfilments”, concludes the note.
Mixed Asian bags
Asian stock markets are proceeding weak and mixed as they await Wednesday’s US inflation data. In Hong Kong, the Hang Seng index, after a falling opening, is flat at -0.09%. The Shanghai Composite Index lost 0.44%, while the Shenzhen Composite lost 0.80%. The Nikkei in Tokyo advanced by 0.58% and the Kospi in Seoul recorded +0.20%.
Oil in sharp decline in Asia
Oil prices fell sharply on Asian markets as tensions in the Middle East eased slightly after Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire in the six-month conflict . WTI crude futures fell by 1.58% to 85.53 dollars a barrel and Brent lost 1.67% to 89.65 dollars a barrel.
The euro starts off slow
Opening little moved for the euro which stands above 1.08 dollars. The single currency changes hands at 1.0834 (-0.01%) dollars. Euro/yen at 164.44 (+0.12%) and dollar/yen at 151.79 (+0.19%).
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– 2024-04-08 08:48:14
