Reopens the Bag after the weekend break and the start for Business Square it is largely positive: the first Ftse Mib index marks an increase of1.96%the FTSE All share a growth of 1.68%. The other European stock markets also rose sharply after the outcome of the first round of the French parliamentary elections.
The spread between Italian and German ten-year government bonds remains around 151 basis points, in line with the recent past versus 157 at Friday’s close, with the BTP rate calm at 4%.
European stock markets all in positive territory after Macron’s defeat. Milan reaches 1.96%
The Milan Stock Exchange reopens after the weekend with a plus sign, aligning itself with the other main European lists. The increase is 1.96% and continues to rise for the moment, bringing the index above 33,805.46 at opening. A result that improves compared to that of a week ago (+1.53%) but lower than that of a month ago (-1.95%). The excellent result is mainly driven by banking stocks, such as Mps Bank at +4.31%, Bper with +4.07% And Unicredit with +3.15%. Other banks also performed well, with Banco Bpm at +2.96%, Banca Ifis at +2.32%, Mediolanum at +1.84% and Generali at +1.17%.
Looking beyond the banks, we can see the strong opening of Stellantis which rises by 2.7% and the cautious opening of Ferrari at +0.45%. There are also some declines, such as Telecom which loses -0.31% and Leonardo at -0.51%.
The other European stock markets also did very well, especially that of Paris which opens sharply higher after the first round of the legislative elections in France: the Cac 40 index at the start marks an increase of 2.5%. Madrid is also on the same wavelength, rising by 1.7%. Frankfurt is up by 1.2%. The London and Amsterdam stock exchanges are more cautious, rising by 0.7% and 0.5% respectively.
During the week, the stock markets will continue to be influenced by political factors, such as UK elections July 4th and the wait for the second round of French Sunday 7th. On the economic front, the ECB’s Sintra Central Banks Forum begins today, with several speeches by Christine Lagarde and Jerome Powell. On the macroeconomic front, June eurozone inflation data is due tomorrow, while the monthly US labor market report will be released on Friday.
Spread at 150 points
The Italian spread settles at 150 basis points, showing a slight decline from 153 last Monday and a more marked decrease from 157 at Friday’s close, a decline that is indicative of an improvement in the perception of risk associated with Italian government bonds. The rate of BTP remains stable at 4%confirming a certain stability in the Italian debt securities market.
At the same time, the spread between French and German government bonds is clearly decreasing. After the first-round vote in France, the spread at the start of the session on the electronic markets stands at 73 basis points, compared to 79 at the close on Friday. This reduction is attributable to the solidity of the French bond, which has benefited from investor confidence, and to an increase in the yields of the German bond. This positive trend reflects greater confidence in the political and economic stability of France, influenced by the outcome of the first round of elections.
