MILANO – European stock exchanges proceed to mixed ends in a week that prepares to cap the worst six months for markets since 1970. The spotlight is on the central bankers forum which opens in Sintra, Portugal, this evening. From here, important indications are expected on the monetary policy strategy of the Fed and the ECB from their respective presidents Jerome Powell e Christine Lagarde. Meanwhile, as expected, the technical default of Russia on foreign debt, with Moscow not being able to pay 100 million in interest on two bonds denominated in foreign currencies, for which payment was expected last May with an additional one-month window, which expired today. Eyes also on the G7from where he expects a tough stance against Putin and probably the decisive step to introduce a price to his energy exports.
Milano it starts well but then cancels the gains and eventually drops 0.69%. London salt by 0.69%, Frankfurt 0.52% while Paris it slipped into the red by 0.43%. In Piazza Affari it is noted Saipem, on the day of the 2 billion capital increase: remains suspended for almost the entire duration of the meeting, on the day of the start of the 2 billion euro capital increase, it closes with a 43.9% rise in the share but a 26.4% drop in rights.
Some tension on government bonds with the spread between BTP and German Bund which touches 200 basis points (199 points). The Italian 10-year rate at 3.52%, an increase of 11 points. The yields of the ‘peripheral’ countries also increased with the government bond of Spain at 2.6%, up by 11 points, and that of Greece at 3.82%, up by 6 points. Upward closure foreuro after fears of slower growth weighed down investor sentiment towards the greenback. Thus the single currency closed up (+ 0.6%) at 1.0614 against the dollar and at 143.41 against the yen (+ 0.5%). Dollar also down against the yen at 135.11.
Also uncertain Wall Streetwhich had started well: at the close of the European stock exchanges, the Dow Jones advanced by 0.16%, the S&P 500 gained 0.18% while the Nasdaq lost 0.13%.
Le Asian stock exchanges they closed higher, with the tourism and consumer sectors leading the gains. Shanghai declared victory over Covid-19 after the city reported zero new local cases for the first time in two months. In Mainland China, the composite index of Shanghai ends at + 0.9% at 3,379.19 points and the index of Shenzhen up 1.1% to 2,216.98 points. To Hong Kong the Hang Seng index advanced by 2.4% to 22,229.52 points. Tokyo it closed higher with the Nikkei 225 index which posted + 1.43% at 26,871.27 points and the Topix + 1.11% at 1,887.42 points.
On the macro front, the S&P agency cuts its growth estimates for the Eurozone economy to 2.6% this year and 1.9% for the next (compared to 2.7% and 2.2%, respectively, in the provisional forecasts for May), due to a “strengthening of headwinds”. Inflationary pressures are the main factor behind this downward revision, explains the agency which expects inflation at 7% this year and 3.4% in 2023 (compared to previous estimates of 6.4% and 3 %). “Consumers are beginning to feel their purchasing power squeeze,” analysts write. The trend in durable goods orders in the United States, on the other hand, rose by 0.7% in May. The figure is better than analysts’ expectations, who were betting on a 0.1% increase.
On the commodities front, gas and oil prices are conditioned by the discussions underway at the G7, to work on the issue of energy measures. North Sea Brent contracts for August delivery remain stable at $ 113 per barrel, while Texas WTI is at $ 107.5. The gas price it is on the rise and is above 133 euros. After hitting a peak of € 137.305 at the opening, gas at the Dutch Ttf hub remains up 3.498% to € 133.
Me too’oro is directly affected by the ongoing discussions between the big names on the planet: on the table there is the hypothesis of blocking all imports of the metal from Russia. A prospect that pushes prices up.
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