Looking at the Ftse Mib graph, the old saying comes to mind:Markets go up by stairs and down by elevator”. In particular, prices break downwards from the rectangle in which they have remained caged for 66 sessions (since March 12th) developed between the highs reached on May 14th at 35,474 and the lows in the 33,300 area. We therefore witness the first bearish sign of 2024which will be confirmed during the next sessions
The ones that weigh on Piazza Affari are the sales on Leonardo (-12.37%) and on banking stocks: in the last 5 days MPS (BIT:) has lost 11.68%, Bper (BIT:) 11.33%, Unicredit (BIT:) 11.03 Bpm (BIT:) -9.62%.
The sell off in Europe started after the result of the European elections, which led France towards early elections on June 30th. The advance of the most extremist forces has frightened investors with the The Paris stock exchange closed 6.2% lower, canceling out the gains made since the beginning of the year.
The market fears that some anti-European policies could take shape in the second country of the old continent, putting French stability and deficit at risk; the reaction on the Europeans was immediate, with the‘Oat-Bund at the highest since 2017 and the Italian spread jumped above 150 basis points.
Operationally On Monday we will try to increase exposure to the market by focusing on a stock that, after a violent sell-off, tests important support above which it could attempt a quick rebound.
Among the interesting titles for the next session, we highlight:
AMPLIPHONE
CAREL
LEONARDO
ILLIMITY BANK
TELECOM (BIT:)
