Bags today April 5 | Weak Europe, gold at highs above $2,000

Start of the session under the sign of caution for the European stock market. Fears for the stability of the economy in the face of a tightening of monetary policy which is still seen as far from exhaustion, due to out-of-control inflation, are worrying the markets. Investors are betting on safe-haven assets: gold prices have exceeded 2,000 dollars an ounce. Wall Street closed lower on Tuesday April 4 after signs of a slowdown in the labor market. According to forecasts by the Cleveland Fed, consumer prices started to rise again in March. In New Zealand, the central bank raised interest rates by half a basis point, more than expected. The aftermath of the banking crisis is still worrying, which according to the CEO of Jp Morgan, Jamie Dimon, is not over yet and, even when it is behind us, will leave repercussions for years.

European stock exchanges and spreads

European stock exchanges contrasted, with Madrid and London (+0.24% both) positive, while Milan (-0.4%), Frankfurt (-0.35%) and Paris (-0.23%) lost. In Piazza Affari, the Ftse Mib dropped 0.42% to 26,912.29 points. The differential between German 10-year BTPs and Bunds rose to 187.2 points, with the Italian annual yield growing by 4.1 points to 4.14%.

Business Square

Terna (+2.03%), Italgas (+1.58%), Ferrari (+1.45%), Diasorin (+0.91%), Tim (+0.78%) and Campari do well in Piazza Affari (+0.75%). Eni slows down (+0.45%) together with crude oil, which reduces the increase (Wti +0.1% to 80.78 dollars a barrel) in view of US weekly inventories. Weak banks from Unicredit (-1.4%) to Intesa (-1.33%), from Bper (-1.25%) to Banco Bpm (-1.05%) and Mps (-1%). Snam (+2.3%) and De Nora (-4.17%) contrasted after the sale of shares of the latter at a lower price than the list price.

Sodexo +9% on the Paris Stock Exchange

Excellent reception on the Paris Stock Exchange for Sodexo’s decision to spin off the Benefts & Rewards Services (Brs) activities to list them and for the increase in the guidance for the year in the wake of a robust first half year. The share of the French collective catering group around 10 o’clock marks a rise of almost 9% to 98.35 euros and projects it to the top of the Stoxx Europe 600 index.

Gold at record levels

Gold prices reached 2,042 dollars an ounce, up 0.18%, exceeding the maximum recorded in August 2020, when it reached 2,029 dollars an ounce. Gold benefited from tensions in the banking sector and from falling US bond rates, noted Cesar Perez Ruiz, Head of Investments & CIO of Pictet Wealth Management. Gold was back above the $2,000-an-ounce mark at the end of March, a level it hadn’t seen since March 2022.

Oil and currencies

The price of oil rose moderately: the May future on Wti rose by 0.41% to 81.04 dollars a barrel, while the June delivery on Brent gained 0.48% to 85.35 dollars. The price of natural gas in Amsterdam fell by 0.9% to 46.1 euros per megawatt hour. On the currency market, the euro/dollar ratio moved little at 1.0960 from 1.0953 at the close yesterday. The single currency is also worth 143.94 yen (from 144.65), while the dollar/yen at 131.42 (132.79).