Home » Business » European Stocks Gain Momentum Following Positive US House Debt Ceiling Agreement and Encouraging Chinese Data

European Stocks Gain Momentum Following Positive US House Debt Ceiling Agreement and Encouraging Chinese Data

Finance

by Stefania Arcudi and Paolo Paronetto

Green light from the US House for the agreement on raising the debt ceiling. Euro returns towards 1.07 dollars. Oil up, gas prices down. Spread remains below 180 points

4′ of reading

(Il Sole 24 Ore Radiocor) – The green light of the US House to Debt Agreementencouraging Chinese data and the words of some Federal Reserve officials on a possible pause in monetary policy tightening give impetus to the European stock indicesThat they travel at a good pace in the first session of the month of June. After the recent weaknessI’m so up the FTSE MIB of Milan, pink jersey among the continental lists also supported by the decline in unemployment (7.8% in April, with the employment rate up to 61%), the CAC 40 of Paris, the DAX 40 of Frankfurt, theIBEX 35 in Madrid, l’AEX of Amsterdam and the FT-SE 100 from London. The decline in the PMI indices on manufacturing does not weigh on the indices (down to 45.9 points in May in Italy, down to 43.2 points in Germany and 44.8 points in the Eurozone)

In China, the manufacturing activity index released by Caixin in May returned to expansionary territory for the first time since February. Indication that comes the day after the official survey, which was instead lower than expected and still in decline. In the United States, meanwhile, pending the Senate’s final approval of the debt agreement, two members of the Fed council expressed themselves in accommodating terms: Philip Jefferson admitted that the central bank is oriented towards keeping the reference unchanged in June, while the president of the Philadelphia Fed, Patrick Harker, said he was convinced that we could “take a break”. Fed Funds futures quickly adjusted and now view the status quo as 62.2% likely.

Review of the Ftse Italia indices, nothing changes in the Ftse Mib

The Ftse Italia Index Series Technical Committee has completed the June 2023 review of the Ftse Italia Index Series, effective from Monday 19 June 2023. No changes for the Ftse Mib: for the main list there are no inclusions or exclusions, while the new list of reserve is made up of Brunello Cucinelli, Buzzi, Reply and Saras. As regards the Mid Cap index, Eurogroup Laminations enters (newly listed) and Dovalue leaves (goes to Ftse Italia Small Cap), while in the All-Share (sum of the baskets of Ftse Mib, Ftse Italia Mid Cap and Ftse Italia Small Cap ) Eurogroup Laminations and Olidata enter and Eukedos, Indel B and Next Re leave. No entries in the Ftse Italia Star, while B&C Speakers, BB Biotech, Generalfinance, Irce, Ivs Group, Piovan, Revo Insurance, Saes Getters rsp leave (they failed on liquidity test which is now also applied to this index).

Recordati shoots, Mps runs after Moody’s upgrade

Returning to the Milan Stock Exchange, among the main titles remember it is the best, after being included among Equita’s “best picks”. Well too Banca Mps, which continues to benefit from the possible aggregation scenarios and is also supported by the fact that the rating agency Moody’s Investors Service has improved the outlook on long-term deposit and senior unsecured debt ratings from stable to positive. Positive too David Campariin the wake of the French rival Remy Cointreau who takes off after the counts, Unicredit e Amplifier. In an all-positive Ftse Mib it lags behind Inwitlocked to parity.

Euro climbs back towards 1.07 dollars, oil on the rise

On the currency side, the euro climbed back towards 1.07 dollars and is indicated at 1.0681 from 1.0663 at the previous close. The single currency is also worth 149.21 yen (from 148.96), while the dollar/yen ratio is 139.69 (139.71). Oil prices are on the rise: WTI, expiring in July, gains 0.62% to 68.51 dollars a barrel, while Brent for August rises by 0.56% to 73.01 dollars.

Spread remains below 180 points, slightly decreasing ten-year period

The spread between BTPs and Bunds on the MTS secondary market of European government bonds showed little movement, with yields slightly up after the sharp declines of the last few days. The yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the same German maturity is indicated at 179 basis points, down fractionally from the 180 points of Wednesday’s closing. The yield of the ten-year benchmark BTP is indicated at 4.08%, from 4.07% of the previous reference.

Gas prices falling in Amsterdam

Negative trend for gas prices at the beginning of the session after the closing up recorded on the eve. Starting off lower, futures traded in Amsterdam widened losses, only to recover ground from the lows. July contracts, after having achieved a first position at 25.75 euros (-4.46%), reached a low for the day at 25.135 euros (-6.3%), to then climb up to 25.335 euros (-5 .6%).

Tokyo closes on parity, yen continues to strengthen

The Tokyo Stock Exchange started trading cautiously, after the contraction of the US stock indexes and awaiting the final vote of the US Congress to raising the debt ceiling aimed at avoiding default. At the opening, the Nikkei reference list marks 30,889.90 (+0.01%). On the currency market, the yen continues its revaluation phase, at 139.20 against the dollar, and at 148.85 against the euro. In negative territory, however, the Hong Kong Stock Exchange, which opened the session in negative territory: the Hang Seng index lost 0.24%, slipping to 18,190.27 points. The opening of the session was also negative for the Chinese Stock Exchanges: the Shanghai Composite index dropped 0.26%, to 3,196.15 points, while that of Shenzhen lost 0.25%, slipping to 1,998.12.

At the top, manufacturing activity improves

This came as manufacturing conditions in China improved for the first time in three months in May, according to the latest PMI data from Caixin. Production expanded at the fastest pace in nearly a year, supported by a renewed increase in stronger customer demand. This in turn contributed to the increase in purchasing activity and input inventories. However, business confidence on the 12-month manufacturing outlook slipped to a seven-month low amid concerns about lingering global economic uncertainty. As a result, firms maintained a cautious approach to hiring, and employment fell further in May. The Purchasing Managers’ Index (PMI), a composite indicator designed to provide a single-digit snapshot of operating conditions in the manufacturing economy – rose from 49.5 in April to 50.9 in May. The latest reading passed the neutral 50.0 level, signaling the first improvement in the health of the manufacturing sector.

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  • Stephanie Arcudi

    Radiocor editor

  • Paolo Paronetto

    Radiocor editor

View on ilsole24ore.com

2023-06-01 08:22:50
#stock #markets #rebound #good #data #China #agreement #debt #Recordati #flies #Milan

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