Stock exchanges today 24 May: US debt scares, Piazza Affari worst in the EU

MILAN. On the financial markets, sales are back again. In Europe, the day started off in sharp decline but it is Piazza Affari that is losing the most ground with the FtseMib index falling by more than 2% in mid-morning. In strong red also the Dax of Frankfurt (-1.2%) as well as the Ibex 35 of Madrid (-1.26%), the Ftse 100 of London (-1.46%) and the Cac 40 of Paris ( -1.57%). The concerns of operators on the US debt ceiling are the leaders. The country could no longer be able to service its debt as of June 1st. The financial markets are closely monitoring the developments of the negotiations and, although a difficult negotiation is underway, they remain optimistic that the level will be raised, as already happened in 2011 and 2013, and that a US default will thus be avoided. Concerns on this front led Wall Street to close in negative yesterday. The American trend was immediately reflected on the Asian and European stock exchanges with sharp declines on the share market.

The bond market is also suffering from the return of volatility. The pledge is paid above all by the Italian Btp whose yield has returned to rise to 4.37%, on the highs of the last 30 days. The Btp-Bund spread moves around 187 basis points on the levels of the day before. Meanwhile, tomorrow the Treasury will return to placing government bonds and will be engaged in the important month-end auction appointment: with 2.75 billion in short BTPs to continue on Friday with 6 billion in six-monthly BOTs, in view of the appointment with the medium-long term next week as well as with the launch of the new Btp Valore.

In the meantime, attention remains high on the European Central Bank. In the evening, with the markets closed, all eyes will be on a public speech by Christine Lagarde for the 25th anniversary of the ECB. In recent days the market has increased its bets on the peak of ECB tightening, bringing it to 3.84%. This in light of new hawkish comments, most recently by Joachim Nagel last night.

In the spotlight remain the macro data that will provide indications to the ECB on the future moves to be implemented. In the morning, the May Ifo data on the sentiment of German companies arrived from Germany. The barometer signaled a drop to 91.7 from 93.6 in April, definitely below expectations which saw it at 93.

Earlier indications had come from consumer prices in Great Britain which recorded a slowdown in April, but to a lesser extent than expected by analysts. On this news, the yields of the Gilt, the 10-year UK debt immediately shot up by 20 basis points.

Returning to Piazza Affari, Mediobanca performed well at the start with increases above 3%, the only blue chip in positive territory. The push came from the green light of the guidelines of the 2023-2026 plan which aims, among other things, at a 70% growth in shareholder remuneration up to 3.7 billion. In red instead Leonardo, Interpump, Pirelli and CNH with losses between 2% and 4%.