Caution still prevails among the main European stock markets following the outcome of the European elections. The attempt to raise its head at the start failed, now the main indices of the old continent are moving downwards, including Piazza Affari which is the worst. In fact, the Ftse Mib index fell by more than 1%. European government bonds are under observation, with the BTP-Bund spread today moving below the threshold of 140 basis points.
There were many topics on the table today on both sides of the Atlantic. On the one hand, Europe is suffering from political uncertainty following the European parliamentary elections and the United States is awaiting data on inflation and the Fed. On the issue of elections and market reaction Gabriel Debach, market analyst at eTorospecifies:
“The reaction of the financial markets, by their nature apolitical, should not be interpreted as a judgment on the political colour. If anything, this is a typical behavior of financial markets which, by their nature, are sensitive to sudden changes and uncertainty. Significant elections introduce new and uncertain variables, prompting investors to react quickly to manage perceived risks. However, once the political landscape becomes clearer and more predictable, the market tends to stabilize and recover initial losses. Meanwhile, the banking sector, the main proxy of the bond world, suffered from the increase in yields and spreads, but it was not the only one to be affected by the context. The single currency also suffered against all major currencies, continuing Friday’s weaknesses.”
Returning to Piazza Affari, today the banking sector is in trouble after the Morgan Stanley report which it rejected Bpm benchworse than the price list.
If you want updates on Italian news enter your email in the box below:
By filling out this form I agree to receive information relating to the services on this page in accordance with the privacy policy.
Banks are struggling, black shirt for Banco after Morgan Stanley downgrade
Trades in trouble for the Italian banking sector in Piazza Affari. The worst on the list is Banco Bpm after the rejection of Morgan Stanley. Analysts at the US investment bank lowered the rating from overweight to equal weight, but revised the target price upwards from 7.1 to 7.7 euros. Experts remain constructive on the outlook related to the bank’s insurance business, on the ongoing strategic partnership with Anima, and on the joint venture in the payments sector but see a lower upside for the consensus on core revenue growth given that the cuts in rates put interest margins under pressure.
The other big banks on Piazza Affari are also under the microscope, with news in terms of target price: that of Intesa Sanpaolo rises from 4.2 to 4.7 euros, that of Mediobanca goes from 16.9 to 18.2 euros, considered Morgan Stanley’s “Italian Top Picks”. Finally, the target price of has also been revised upwards UniCredit rises to 43 from 40 euros.
Amplifon, the best on the price list
Amplifon is the best on the Milanese list. The stock is currently rising by 1.25%. The podium is then completed by DiaSorin And Prysmian which however show limited increases. Slips into red after a good start Iveco Group which is now down around 0.4%. In past sessions the stock had come to the fore following rumors of Leonardo’s interest in its Iveco Defense Vehicles division.
