European stock markets start in the red. The Ftse MIB of Piazza Affari loses almost half a percentage point, same trend as the Paris and Frankfurt stock exchanges. In Milan Leonardo (+1%) and Tim start well after the closing of the sale of the network to the Kkr fund.
FRANCE TOWARDS SECOND ROUND
European markets’ attention is still focused on France, where parties are finalising their “withdrawal” agreements ahead of Sunday’s second round. The president Macron he made it known that the priority is to stop the rise of Le Pen’s National Rallythus opening up the transfer of votes towards left-wing candidates. The New Popular Front (the left-wing alliance), albeit with some hesitation, seems intent on doing the same. Le Pen, meanwhile, is seeking a similar agreement with the Republicans. It is difficult to predict what will happen on July 7, given that the “triangulations” – or second rounds with at least three candidates in the running – are currently over 300.
A WORD TO CENTRAL BANKERS AND INFLATION
Today, focus will also be on the central bankers’ summit in Sintra. Yesterday Lagarde reiterated that the ECB is in no hurry to cut rates, even though Belgian advisor Pierre Wunsch, interviewed by Reuters, spoke of a second cut being almost certain. The preliminary data of theEurozone inflation Junewith expectations of a drop to 2.5% after the +2.6% of the previous month. Also today in Sintra, the speech of the number one of the Federal Reserve, Jerome Powell, is expected.
RECEIVE FREE NEWS PREVIEWYEN AT 38-YEAR LOW
On the Asian markets the trend continues unabated Japanese Yen Fallat a 38-year low against the U.S. dollar. Despite the slide, several analysts say it is not a given that the Tokyo government will introduce measures to support the yen. Minister Suzuki reiterated that he is closely monitoring the foreign exchange market, but declined to comment in more detail. “We would not be surprised to see further intervention by the Finance Ministry in the foreign exchange market at any time,” Masamichi Adachi and Go Kurihara said in a note from UBS, stressing that it would still be “difficult to reverse” the trend of the Japanese currency’s depreciation. Meanwhile, in Chinese record sales of electric cars by BYD. The Stock Exchange of Tokyo closed up 1.24%, also helped by the decline of the yen, while Shanghai and Hong Kong are trading around parity.
CURRENCIES AND OIL
On the currency front, the euro remains weak against the dollar with the exchange rate little changed at 1.073. The price of the petrolium with Brent September at 86.8 dollars per barrel and Wti August at 83.5 dollars. Gas also moved little, trading at 33.5 euros per megawatt hour on the TTF platform in Amsterdam.
