Uncertainties on the geopolitical and economic fronts continue to dominate the scene for European equity markets. The developments of the war between Russia and Ukraine, which show no concrete progress in the peace negotiations, doubts about the timing of the monetary policy tightening initiated by the Fed and the sharp slowdown in oil prices thanks to the use of US strategic reserves remain at the center of investor attention. In the first session of April and the second quarter in Piazza Affari, the Ftse Mib is substantially unchanged (+ 0.57%), while in the rest of Europe Frankfurt is + 0.30%, Paris + 0.28% and London + 0.41%. Wall Street futures also rose with the Dow Jones up 0.56% and the S&P up 0.55%.
Traders remain at the window pending the resumption of negotiations between Russia and Ukraine. On the macro data front, in March the manufacturing PMI index in Italy stood at 55.8 points, down from 56.8 in February and below the consensus expectations of 56.9. Italian manufacturing companies “dealt in March with the current problems of the distribution chain and the shortage of materials that hindered the growth of the business, whose relative growth rate was the weakest since December 2020”, summarizes Cooper, economist at S&P Global.
The final Eurozone manufacturing PMI index for March, prepared by Ihs Markit, stood at 56.5 points, down from 58.2 points in February. The figure is lower than the preliminary reading and the consensus of economists at 57 points. Going into the details of the other states, France’s definitive manufacturing PMI stood at 54.7 points, down from 57.2 in February and below the preliminary at 55.5 and the consensus at 54.8 points. Germany’s result was 56.9 points, down from the 57.6 points of the previous month and below the preliminary and consensus at 57.6 points.
Furthermore, in March inflation, according to the preliminary reading, rose by 7.5% on an annual basis, more than expected by the consensus of the economists contacted by the Wall Street Journal, to + 6.9%. The figure is accelerating compared to + 5.8% in February. This was announced by Eurostat, adding that the core price index, which excludes the components of energy, food and alcohol, rose by 3% on an annual basis, an acceleration compared to + 2.7% in February and in line with the expectations of the consent. The attention is now catalyzed by the surveys on the US labor market in March, on the agenda at 2.30pm.
Oil rose after yesterday’s sharp drops with the WTI at $ 100 a barrel (+ 0.50%) and Brent at $ 105 (+ 0.93%) after the attack in Russia on an oil plant. US President Joe Biden is releasing up to 180 million barrels of oil reserves to try to reduce record fuel prices, with unprecedented government intervention in the oil markets following the Russian invasion of Ukraine. Speaking from the White House yesterday, Biden called high energy prices a wartime problem that requires a solid and wide-ranging response. The release of oil, about one million barrels a day for six months, starting in May, will be the largest ever from the country’s emergency stocks, amounting to about 568 million barrels.
Gas decreased by 1.117% to 124,500 euros per megawatt hour. Palazzo Chigi is studying a plan to defend itself against the latest unexpected move by Vladimir Putin who yesterday signed a decree that in ten days should move the Siberian gas payment currency from the euro (and from the dollar, to a lesser extent) to the ruble. Gold also fell (-0.92%) which trades at 1,932 dollars an ounce. In the currency, the euro falls from its one-month highs against the dollar at 1.10 (-0.08%), the dollar strengthens again against the yen at 121 (+ 0.66%). The ruble moved little to 83.58 for one dollar (+ 0.38%) and 91.58 for one euro (+ 4.48%).
Tim sold 3.48% to Piazza Affari: press rumors about the progress in the comparison with CDP on the subject of a single network make it less likely that the offer of the Kkr fund will materialize. Saipem (+ 3.71%) returns to the top of the list, followed by Unicredit banks (+ 2.04%), Bper (+ 2.02%), Banco Bpm (+ 1.78%), Intesa Sanpaolo (+1 , 08%). Generali continues to rise (+ 2.17%) in view of the record date of April 14 for the shareholders’ meeting of 29. Campari is also doing well (+ 2.18%), of which Citi has raised the rating from neutral to buy. (All rights reserved)
