Weak week for European stock exchanges, with the exception of Amsterdam, which rose by 0.6%. Thus the Dutch market not only continues to boast the best performance in Europe since the beginning of the year (+ 17.9%), but is clearly behind Paris (-1% weekly decline and + 16.37% in 2021), Frankfurt (-0.94% and + 13.28%) and Milan (-1% and + 11.5%). Madrid was the worst performer, with a weekly decline of 3%, which thinned earnings for the whole of 2021 to just 5.3%. The eighth was also negative for London, which left 1.6% on the parterre, bringing the increase from the beginning of the year to + 8.48%. Moreover i numbers on infections have again raised concern, causing fear of new restrictions on the way and therefore less optimistic forecasts for the economy. Moreover, at the end of the week, the Central Bank of Japan revised the shot on the prospects for the rebound, in order to take into account the resurgence of the pandemic. In the background, doubts about the moves of central banks also remain, despite the fact that in recent days both the number one, Jerome Powell, and the US Treasury secretary, Janet Yellen, have taken the field to reassure that inflation will rise, but probably only in transitory way. Translated, monetary policies should remain ultra-expansionary. But last June, the US consumer price index rose 5.4% from a year earlier. This is the largest rise in nearly 13 years. In Europe, the prospect that the delta variant could lead to the introduction of new restrictions weighed more on stocks in the oil and travel sectors: the respective sub-indices left over 4% on the parterre. The oil sector, however, also weighed on the indiscretions that an agreement between the OPEC Plus countries to raise production levels is imminent, as well as the announcements of the president of the EU Commission, Ursula von der Leyen, on the ambitious energy transition plan. Even crude oil, while remaining at high levels. left over 3% on the parterre. The plan announced by the EU Commission to combat harmful emissions has also encouraged sales in the auto sector (-2.49%). On the other hand, the more defensive stocks in Food fared better (+ 0.7%). Technology (+ 0.43%) and utilities (+ 0.22%) also did well. At Piazza Affari Amplifon canceled last Friday’s losses of 6.4% caused by news that the Biden administration will favor competition in the hearing aid industry. Titles recovered 6.57% in five sessions, also celebrating the acquisition of Bay Audio in Australia. Since the beginning of the year, Amplifon boasts an increase of 19.18%. They also did wellTerna (+ 2.8% and + 5.6% from the beginning of the year), still driven by the rich investment plan presented for the next ten years, as well as for a return of interest in the utility sector. Finally the Inwit(+ 2.16%, -0.18%). On the other hand Banca Pop Er suffered the worst performance of the Ftse Mib, falling by 7.28% (+ 10.13% from the beginning of the year). The Leonardo (-6.6% and + 7%) and the Tenaris (-5,29%, +28,71%).
As for the session on Friday 16 July, the fears caused by the numbers on infections have once again kept them in check European stock exchanges, which thus closed down, also discouraged by Wall Street, in negative after a good start. It tried to redeem itself from the sales of the previous days the sector do you travel, also benefiting from US President Joe Biden’s opening to an imminent lifting of restrictions on air flights from Europe to the United States. After several changes of direction, the FTSE MIB of Piazza Affari lost 0.33%, with the spread between BTp and Bund in area 104 points.
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July of caution between Delta variant and bets on recovery
Investors in these weeks of July are adopting a cautious attitude as while indices and stocks are trading at high levels, there is a suspicion that bad news may arrive. After all, the Delta variant is pushing the spread of infections from Covid-19 and some countries are again adopting more restrictive rules. For example, Barcelona and some Spanish municipalities have announced that the curfew will be reintroduced tomorrow. Meanwhile, the first cold shower has arrived from the East, caused by the resurgence of the pandemic: the Central Bank of Japan has revised down the estimates for the growth of the country’s GDP compared to the April forecasts, forecasting for the fiscal year 2021-22 a rebound of 3.8% and no more than 4%, after GDP fell by 4.6% last year (fiscal year 2020-21). «The indications of the Boj show that it takes little for the course of the economy to change. Japan could also have benefited from tourism linked to the Olympics and instead, due to the spread of infections, the scenario has changed in a short time », commented an analyst. In the States, however, corporate accounts testify to a thriving economy. In addition, June retail sales fared better than expected, up 18% from last year. These data, however, failed to support the indices, which after a positive start suffered the pressure of sales. «The game will be played in September or autumn, when the picture of the pandemic and the economy will be clearer. Until that date, the indices will probably record a mixed and volatile trend partly driven by bets on recovery, partly penalized by fears that the rebound of the economy could be held back by a new wave of contagions ”, commented a trader. As if that weren’t enough, there is also concern about the damage caused in Germany and Belgium by bad weather. In the background, then, the question remains about the moves of the central banks, in the event that inflation were to skyrocket. However, in the States, after Jerome Powell’s assurances that monetary policy will remain accommodative, indications have also arrived from the US Treasury Secretary, Janet Yellen, according to which even if “we will have many more months of rapid inflation”, this will then return to normal levels. Meanwhile, last June, the consumer price index increased by 5.4% compared to a year earlier. This is the largest rise in nearly 13 years.
Eurozone, inflation slows down in June: 1.9%
Consumer price growth slows in the Eurozone. In June, Eurostat reports, the annual inflation rate was 1.9% in the eurozone, down from the 2% trend recorded in May. Last year, the inflation rate was 0.3 percent. Considering the whole of the European Union, an inflation rate of 2.2% was recorded in June (2.3% in May). In the EU, the lowest annual rate was recorded in Portugal (-0.6%) while the highest in Hungary (+ 5.3%) and Poland (+ 4.1%). Compared to May, trend inflation slowed down in twelve Member States, remained stable in four and grew in eleven States. The strongest contribution to trend inflation came from energy prices (+1.16 percentage points), followed by the prices of non-energy industrial goods (+0.31 percentage points).
