More declines in Piazza Affari. Further declines for the banking sector. The script in Milan still seems to be the same as yesterday with the main Ftse Mib banks, led by Bper and UniCredit, continuing to suffer.
After the outcome of the European elections and the decision of France’s vote at the end of June, the markets continue to struggle to digest this situation of political uncertainty that has been created. A tension also highlighted by the trend of Eurozone spreads which remain under pressure in the wake of the uncertainty over the outcome of the French parliamentary elections.
On this topic, the strategists of Mps Capital Services they point out that on the “OAT-bund spread (above 70bp) the market has in mind the 80bp spread reached during the 2017 presidential elections as a possible top of the movement” and recall that “the flow of polls that we will see in the next two weeks ( first round on June 30) will guide the evolution of this spread and European assets in general. The only certain thing seems to be the persistence of an environment of high volatility.”
The question of the Fed rate cut remains at the forefront after the announcements and indications that arrived on Wednesday evening at the end of the two days of meetings of the FOMC, the operating arm of the US central bank. Rates firm at the June meeting (as expected) but the dot plots only predict one rate cut (and no longer three as the March graph indicated)
On the Ftse Mib, which is currently losing around 2.8% to 32,675.52 points, among the worst stand out Bper And UniCredit in the company of the main banks. However, it resists Amplifon.
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.
Banking, a new tumble: 4% reductions for UniCredit and MPS
Week to forget for the bankers of Piazza Affari who are preparing to close with a negative balance. The most targeted by sales at the moment is Bper in the company of UniCredit, with drops of almost 5%. Strong drops also for MPS. For the Sienese bank at the moment the weekly balance sheet shows a red of over 12%. UniCredit is also among the worst in the eighth. Bper Banca, Banco Bper and Intesa Sanpaolo also performed badly.
In addition to issues related to politics and central banks, the issue of banking risk also remains under scrutiny at a national level, touched today by the CEO of Banco Bpm, Giuseppe Castagna, during an interview with “La Stampa”. Castagna reiterated that on the M&A front, it is difficult for the sector to consider operations again before a more significant drop in rates, i.e. 18-24 months. Then he underlined once again that Banco Bpm is fully focused on pursuing its stand-alone growth strategy.
E-Toro: Italian banking sector and long-term resilience
The sector suffered yesterday too and, together with the auto sector, it was one of the most penalized in Europe. But in a recent comment Gabriel Debach, market analyst at eTorohe also pointed out how the Italian banking sector has shown remarkable long-term resilience. “In fact, the so-called Magnificent 7 Italian banks — Unicredit, Intesa Sanpaolo, Banco BPM, Mediobanca, Bper, Banca Mediolanum and Monte dei Paschi — have almost doubled the performance of the original American Magnificent 7 since the beginning of the year – reported the expert -. This trend of robust growth for Italian banks is not new in 2024, but continues throughout 2022, demonstrating that, despite the media attention often focused on advanced technologies and artificial intelligence, the Italian banking sector has been able to offer results surprisingly positive.
Certainly, he concludes, headwinds are present and corrections are justified; however, with an ECB ready to put its foot on the brake again on new rate cuts this year, in line with the Fed’s own expectations, the sector could still find fuel to run.
Amplifon goes against the grain of industry trends
Counter-current seat for Amplifon. The stock of the hearing aid group rises by almost 2%, one step away from the 35 euro threshold and is preparing to close the week among the best on the list. Banca Akros analysts focus on a recent aspect of Amplifon survey conducted by Miracle-Ear, company controlled by the Italian group, which highlights the significant concerns related to hearing loss among Generation X and Baby Boomers (between 44 and 78 years old), revealing that many are not taking measures to address their health related to hearing.
According to the survey, approximately 75% of Gen and on finances.
