Bags today May 9 | Europe down slightly, banks sprint in Milan

A cautious start, slightly down, for the European stock exchanges, with investors holding their breath in view of the US inflation data arriving tomorrow May 10 (consumer prices) and Thursday 11 (production prices). They will be useful for understanding whether the Federal Reserve will actually decide to pause in rate hikes, as implied at the last meeting, while there is greater optimism about the economic situation. Moreover, if on the one hand the better than expected data on the American labor market released last week at least partially allayed fears about the possibility that the American economy would fall into recession, on the other – with the increase in wages – concerns about inflation and monetary policy have strengthened, giving the Fed arguments to keep interest rates high for longer.

European stock exchanges

Thus the indices travel with the handbrake on in the first part of the session, with the Ftse Mib (-0.12%) holding up thanks to the sprint of the banks. Further back Paris (-0.45%), Frankfurt (-0.2%), Amsterdam (-0.3%), Madrid (-0.2%) and London (-0.05%). The trend of the stock exchanges in real time at this link.

Business Square

Meanwhile, on the corporate front, the season of quarterly reports continues at full speed and in Piazza Affari the protagonists are precisely the companies, banks in the lead, who have published their accounts: Banco Bpm takes off (+4.12%, but +4.8% in first few bars) after the first quarter higher than expected e the 2023-2024 guidance revised upwards, and Banca Mps (+3%, after a peak of +5%) after the profit growing to 236 million against 10 million in the first quarter of last year. Among the big names in the Ftse Mib, Bper (+3.4%), Diasorin (-0.73%) and Inwit (+0.04%) are also expected. In the queue instead Iveco Group (-1.84%), which dissolved the collaboration with Nikola, with an impact on the accounts judged limited by analysts (44 million euros in the first quarter).

Spreads

Slow start for the BTp/Bund spread. In the early stages, the yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the same German maturity stood at 192 points, up by 1 cent compared to yesterday’s closing. The yield of the 10-year benchmark BTP was stable, taking first place at 4.23%, unchanged compared to the previous day’s reference. The trend of the spread in real time at this link.

Energy and currencies

After the acceleration of the previous sessions, oil is slowing down: June WTI futures drop 0.56% to 72.75 dollars a barrel, those of Brent July 0.58% to 76.56 dollars. Natural gas prices traded in Amsterdam,after having scored a first position at 37.475 euros per megawatt hour, rising by 0.1% to 36.9 euros. On the currency side, the single currency weakens against the greenback and returns below 1.10 dollars, changing hands to 1.0997 dollars (from 1.101 yesterday). The euro is also worth 148.235 yen (from 147.8). The dollar/yen cross at 134.775. Finally, the spread opens little moved at 192 points (191 on the eve) with the 10-year yield unchanged at 4.23%.

Asian bags

Mixed opening for Asian stock exchanges. Hong Kong shares started the session lower after a strong bull run yesterday, with little inspiration from tepid guidance from Wall Street. The Hang Seng index lost 0.22% to 20,252.13 points. The Tokyo Stock Exchange continues to rise with the Nikkei at +0.75%. The Chinese stock markets closed the session in negative territory: the Shanghai Composite index dropped 1.10%, to 3,357.67 points, while that of Shenzhen lost 1.17%, slipping to 2,023.06.