Bags today May 22 | Weak Europe, attention to US debt and central banks

European stock markets begin the week under the sign of caution, which after the good rise on Friday are once again following the negotiations for raising the US debt ceiling with bated breath. President Joe Biden and Republican House Speaker Kevin McCarthy will return to meet to try to break the stalemate and prevent a default which would trigger chaos on the financial markets. The markets are focused on developments on the US debt ceiling as the hypothesis of a thaw between the United States and China is assessed. Attention remains high on the front of the central banks, while signals are awaited on the next rate hikes.

European stock exchanges and spreads

Among the main continental lists, the Ftse Mib of Piazza Affari drops 0.75%, but would score the best performance of the day net of the maxi coupon detachment by 19 big names, which weighs 1.27% on the index. In the rest of Europe, Frankfurt scores -0.12%, Paris -0.09% and Amsterdam +0.04%. The trend in real time at this link.

Business Square

In Milan, the shares of the banks stand out with Bpm +1.1%, Mediobanca +0.6%, Mps +1.5%, Bper net of the dividend +2.2%. On other financials also here net of the detachment. In energy Enel +0.7%, over Snam and Terna, A2A +1% net of the dividend. Weak in industry Cnh (-0.6%), Iveco (-1.1%), Prysmian and Iveco (-1.3%). Pirelli (-0.7%) and Cnh (-0.6%) are also bad. On the government bond front, the spread between the BTP and the Bund rose to 184 points, with the yield on the Italian 10-year bond at 4.25%. The spread in real time at this link.

Asian bags

Asian stock markets closed higher following positive signs on the US debt ceiling and speculation about a thaw between the US and China. The markets focus on the performance of the global economy while awaiting signals from central banks for the next interest rate hikes. Positive session for Tokyo (+0.9%). On the currency front the Japanese currency weakens against the dollar to 137.88, while it rises to a value of 149.21 against the euro. With negotiations still ongoing, Hong Hong (+1.4%), Shanghai and Shenzhen (+0.3%) also rose, with the central bank leaving rates unchanged, Seoul (+0.7%) and Mumbai (+0.3%). On the macroeconomic front, consumer confidence in the Eurozone is on the way. The interventions of some members of the ECB (Vujcic, Holzmann Lane and Villeroy), and of the Fed (Bullard, Bostic and Barkin) are awaited.

Currency exchange and energy

The single currency is also worth 148.89 yen (from 148.78), while the dollar/yen ratio is 137.91 (137.53). Oil is weak: the WTI future for July drops 1.19% to 70.84 dollars a barrel and the contract for the same maturity on Brent loses 1.18% to 74.69 dollars. The price of natural gas traded in Amsterdam remains below 30 euros per megawatt hour, on the levels of June 2021: the contract for June drops 2.2% to 29.5 euros.