(Il Sole 24 Ore Radiocor) – European stock exchanges await the publication of the data on American inflation for July and meanwhile remain cautious. The reading on consumer prices will provide indications on what the trajectory of US monetary policy may be, as the better-than-expected labor market data released last week seems to leave ample room for an aggressive Fed, while a survey conducted by the Federal Reserve of New York indicates that consumers believe that the high cost of living may have already been reached. In Piazza Affari the FTSE MIB scores the best performance on a continental level, registering a prudent rise. Among the Milanese blue chips, sales hit Diasorin, Banca Generali and Interpump Group. Leonardo – Finmeccanica, on the other hand, resists in positive territory. Bper rises again, confirming the positive trend following the publication of the half-yearly report.
On the macro front, consumer prices have meanwhile risen to their highest levels in two years in China, thus penalizing the performance of the Asian markets, which also continued to be affected by sales on tech stocks: yesterday in the US it was the turn of Micron Technology to warn the market on the slowdown in demand, as has also been done in recent weeks by other competitors. In Germany, consumer prices increased by 0.9% in July compared to June and by 7.5% year-on-year, slowing down from 7.6% in June and 7.9% in May, according to data released. by Destatis, confirming the estimates. However, investors’ eyes remain on the Fed: the solid July employment report, released last week, suggests that the Federal Reserve will remain aggressive to tackle inflation, but a recent survey of New York consumers suggests that the peak consumer prices may have been reached. As for the accounts, three-quarters of the more than 400 companies on the S&P 500 that published the half-year report performed better than expected, according to data from FactSet.
Istat, inflation confirmed at 7.9% in July
In Italy, meanwhile, Istat confirmed that in July inflation rose by 0.4% on a month and by 7.9% on a year (from + 8% in June). In particular, the prices of energy goods slow down (from + 48.7% in June to + 42.9%) due to regulated energy sources (from + 64.3% to + 47.9%) with the prices of non-regulated energy which grew by 39.8% (from + 39.9%). Core inflation, net of energy and fresh food, accelerates from + 3.8% to + 4.1% and inflation net of energy goods alone from + 4.2% to + 4.7%. The inflation acquired for 2022 is equal to + 6.7%.
For Bper + 15% from Thursday, Generali ok with outlook confirmation
Returning to the main Milanese stocks, Bper brings the performance from last Thursday to + 15%, the day of the publication of the half-yearly accounts and the announcement of the negotiations for the partnership with Gardant on non-performing loans. Generali also did well, on which Moody’s confirmed its stable outlook despite the cut in prospects on the Italian sovereign rating. According to the rating agency, in fact, “the strong geographical diversification of the group and the continuous improvement of its financial profile” makes it capable of “supporting a crisis scenario for Italian government bonds”.
Spread down slightly to 211 points, BTp yield to 3.02%
On bonds, the spread between BTp and Bund on the secondary MTS market for European government bonds is slightly down. The yield differential between the benchmark ten-year BTp and the same German maturity stood at 211 points at the beginning of the session from 213 basis points on the eve of the session. The yield of the benchmark ten-year BTp also fell, reaching 3.02% from 3.05% at yesterday’s close.