After closing for the weekend, the financial markets, with Milan aligning itself with the uncertainty of the rest of Europe. The Bags they are cautious waiting for the political situation to evolve France. Increases below one percentage point were recorded everywhere, with Piazza Affari driven by the excellent results of the banking sector.
It remains around altitude 150 basis points the spread between Italian and German ten-year government bonds, also in this case in line with the recent past. The shock of the European elections increased the gap by around 10 points compared to previous months, with yields still remaining below 4%.
Italian stock market up slightly: banking stocks doing well
The Milan Stock Exchange reopening after the weekend is in line with the other main European stock exchanges. An increase of just under one percentage point, above 33,630 points, mainly driven by banking stocks. They stand out to everyone Bper Banca, at +3.57%, Monte dei Paschi di Siena, +2.59%, Unicredit, +2.23% and Banca Popolare di Sondrio, +2.18%.
There are also some significant reductions, such as that of Hera, at -1.35%. The energy sector remains substantially stable or slightly rising, with Eni, Saipem and Tenaris holding just above parity. Poste, however, did poorly, losing 0.7% of the value of its shares at the start. Erg, -0.4%, and Nexi, -0.2% are also in partial difficulty.
The rest of Europe also seems to be aligned with this trend, even if most of the other price lists remain further away from the percentage point of growth compared to Milan. This is a situation of uncertainty due above all to the trend of the election campaign in France. After a critical moment, President Macron’s party has rapidly recovered consensus, while the left-wing coalition is undermining the position of the far-right Rassemblement National, winner of the European elections.
The spread remains stable: still above 150 points
Precisely following the continental vote, the spread between Italian BTPs and German Bunds it had expanded, reaching first 140 and then 150 basis points. The trend in the yields of our country’s government bonds had followed that of the main European partners, but the downward trajectory was slower. For this reason the differential remained high even weeks after the vote.
The downward trajectory of yields is however shared by Italian government bonds with the rest of European ones. The peak of over 4%, reached when the spread was lowest, at 140 points, remains in fact the highest point at which interest on Ten-year BTPsthey managed to arrive. To date they stand at 3.91%, compared to 2.4% for the German ones.
Good news for the government, which will have to find resources for 10 billion approximately in order to fall within the debt and deficit parameters required by the European Union. A reduction in the cost of public debt should help, even if the corrective measure now seems to be an almost inevitable eventuality. The savings will have to be maintained consistently for several years before Italy can complete its process of returning within the parameters negotiated with the European Union.
