Day dedicated to caution European stock exchanges, after the new Wall Street records and the positive session in Asia, also driven by the rally in Chinese exports (+ 32.2% trend in June), a sign of a normalization of foreign demand. Investors are watching the window, with their eyes on the start of the quarterly season in the US and on the numbers of US inflation. The price trend is closely monitored by the market for the effects it can have on monetary policies, along with the increased spread of the Delta variant of the virus, which is leading to new closings or slowdowns in reopening around the world.
Expectation for the quarterly and for US inflation
Meanwhile, the wait for the quarterly season is rising, which will begin in the States with the publication of the accounts of the big banks, from JP Morgan to Goldman Sachs. Most investors are betting that the opening quarterly season will witness an economy in full recovery, it remains to be seen whether the numbers can still support Wall Street records. Greater caution on inflation, a real litmus test to understand whether the US economy is overheating. In this case the Federal Reserve it will be forced to review its moves, after the minutes of the last FOMC meeting revealed that monetary policy should remain accommodative for a long time to come.
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FTSE Mib stock market trend
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Weak banks, Tim holds
On the Milanese shares, the sales hit first of all the banking stocks, with Bper Banca, Finecobank, Banco Bpm, Intesa Sanpaolo e Unicredit in line. Utilities, on the other hand, rose with Inwit driving the rises e A2a e Terna well in tune. Go back up Amplifon after the rises of the eve, it weakens Telecom Italia which had opened the session with a sharp rise, after the TAR canceled the fines imposed by the Antitrust in 2020 for the repricing carried out after the return to monthly invoicing. Purchases also reward Industrial Namee Buzzi Unicem. Out of the main price list, Mondadori awarded by analysts after the signing of the agreement for the purchase of De Agostini Scuola.
Good demand and mixed rates for BTp at auction
Slightly up the spread between BTp and Bund, in a market that does not seem to experience the shocks of last week. Meanwhile, on the primary, mixed returns in the auction in which the Treasury placed 3, 7 and 15-year BTp for a total amount of 9 billion. In detail, the Mef issued the first tranche of the new one BTp at 3 years for 4.5 billion against a request of € 6.041 billion for a hedging ratio of 1.34. The yield slightly increased by 2 basis points to -0.19 per cent. The fifth tranche of the BTp at 7 years: in the face of requests for 4.123 billion (1.50 the hedging ratio) the amount issued was equal to 2.75 billion while the yield, down 8 cents on last month’s auction, stood at 0 , 38 percent.
Finally, the fourth tranche of the BTp at 15 years, awarded for 1.75 billion against a total demand of 2.694 billion (1.54 the coverage ratio), achieved a gross yield of 1.19%, down by 7 basis points.
Oil still rising pending US stocks
They continue to rise the prices of crude oil, pending data on US stocks. However, caution remains high: the elements of uncertainty are given by the Delta variant which jeopardizes the recovery and, above all, by the waiting for the discussions underway within OPEC + after the stalemate on the increase in production. In this regard, the AIE said that “without such an agreement, the market will have to face the prospect of a growing supply deficit”. With the market now exhausted from the oversupply accumulated since the pandemic began, potential inflationary pressures could damage the economic recovery, according to the IEA.
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