Bags today June 15 | Europe opens lower after the Fed: waiting for the ECB

European stock markets open lower on European Central Bank day. After the Federal Reserve yesterday left rates unchanged after 10 consecutive hikes, however announcing two more hikes in 2023 before cutting again in 2024, today from Frankfurt an increase in the cost of money of 25 basis points is expected. Great attention will also be paid to the press conference of the ECB president, Christine Lagarde, which will follow the announcement on rates. In Milan the Ftse Mib drops by 0.28%, in Frankfurt the Dax40 by 0.23% as the Ibex35 in Madrid and in Paris the Cac40 loses 0.3%, when the Amsterdam Aex is flat (-0.03 %). At this link the markets in real time.

Central banks

Meanwhile, a new round of macro data has arrived from China which shows a picture of caution on economic growth: industrial production slowed down to +3.5% per annum in May, moving in line with expectations, while retail sales rose by 12.7% compared to May 2022 doing worse than estimates. In this context, the Chinese central bank has cut the reference rate on medium-term loans towards financial institutions, bringing it to 2.65% from 2.75%. It is the first time since August and this intervention should lead to a cut in the reference rate on loans to households and businesses (Loan Prime Rate) on 20 June. On the macro front, there will also be plenty of guidance from the US today, from new weekly jobless claims to retail sales, as well as May industrial production and import prices.

Business Square

Returning to Piazza Affari, among the titles, Italgas was weak (-0.62%) on the day of the presentation of the new plan to 2029 which provides for 7.8 billion euro of investments, an average annual growth in turnover and Ebitda in the period of ‘8%. Tim remains in the spotlight (+0.16%), after yesterday the board co-opted Alessandro Pansa, disappointing the expectations of the French partner Vivendi who bet on another candidate. Below parity Eni (-0.31%), after that – according to press rumors – he would have intensified contacts with various interlocutors for the sale of a minority stake in Plenitide. Spread Btp-Bund stands at 166 basis points just a few minutes after the launch with Italian 10-year bonds yielding 4.15% (5 basis points more than yesterday). German bonds guarantee a yield of 2.49%. Here the trend of the spread in real time.

Energies and currencies

On the currency market, the single currency tries to stay above the 1.08 dollar threshold and changes hands at 1.0808 (1.085 at yesterday’s close), as well as being worth 152.751 yen (151.18), when the dollar/yen exchange it stands at 141.327 (139.33). On the energy front, the price of crude oil rose slightly: Brent contract for August delivery climbed 0.22% to $73.36 per barrel and that expiring in July on the WTI of 0.29% at 68.47 dollars a barrel, when in Amsterdam gas is traded at 39.2 euros per megawatt hour (+2.3%).

Asian bags

The Asian stock exchanges closed the session mixed, after the Fed meeting and with the Chinese central bank which lowered the reference rate for medium-term loans to support the economy. Attention is now focused on the decisions of the ECB arriving during the day. Tokyo moved little (-0.05%). On the foreign exchange market, the dollar rose to its highest level in 7 months against the yen, negotiating at 141.20 and 152.70 against the euro. Still negotiating Hong Kong (+1.4%), Shanghai (+0.5%) are on the rise, Shenzhen (+1.1%). Seoul (-0.4%) and Mumbai (-0.2%) are down. On the macroeconomic front, inflation in May in France, the trade balance in Europe and the meeting of the Eurogroup are expected. US Retail Sales, Jobless Claims, Industrial Production and Philadelphia Fed Manufacturing Index are expected.