There Milan Stock Exchange opens slightly down after the weekend break but recovers, currently reaching +0.64% at 34.215,15 Same story for other European stock markets, after the outcome of the French parliamentary elections.
The spread between Italian and German ten-year government bonds reaches up to 138 basis pointsunchanged from Friday.
Milan opens in decline but there is recovery
A rollercoaster start to the week for the Italian and European stock markets: if last week they all opened in the green, now the markets of the Old Continent started weakly, but reversed course shortly after.
Like Milan, which started down at -0.17%, but a few minutes later managed to recover to +0.64%. This increase was largely supported by the positive performance of the sector bankingwhich continues to show signs of resilience despite the ongoing political turmoil. Although the first place currently goes to Iveco Groupleading with an increase of +2.77%, followed by Finecobank at +2.46% and Mps Bank at +1.84%. Above the percentage point are also Bper Bank (+1.65%) and Mediolanum (+1.15%). In addition to banks, there was a good opening of Pirelli with +0.60%, Stmicroelectronics with an increase of +0.58% and Campari with +0.54%.
On the other hand, companies like Diasorin And Amplifierrespectively at -1.39% and -1.35%. Also bad were Saipem, which recorded a loss of -0.95%, Erg at -0.75% and Eni at -0.54%. These declines indicate a certain concern for specific sectors, perhaps linked to external factors such as changes in raw material prices or uncertainties related to energy policies.
European stocks open cautiously
Other European stock markets are also recovering after the early drops. A sign that there is great uncertainty for the future of France after the elections, after Jean-Luc Mélenchon’s Nouveau Front Populaire is in the lead, overtaking the party of Emmanuel Macronwho is second, and that of Marine Le Pen, who is in third place.
The indices started cautiously, with Paris down 0.6%, but later reversed course. However, political uncertainty remains high, as no French party has obtained a clear majority and forming a government appears complex, given that the programs of the various political forces are distant and often irreconcilable. Also doing well Amsterdam (+0.3%) and Frankfurt (+0.3%)despite the fact that in Germany in May imports fell by 6.6% on the month and exports by 3.6% (worse than expected).
Spread at 150 points
The spread between BTPs and Bunds started lower after the unexpected outcome of the elections in France, which saw the victory of the left but did not outline a clear framework for the formation of the new government.
In the early stages, the impact on Italian government bonds appears limited, with the yield spread between the benchmark 10-year BTP and the German Bund of the same maturity standing at 138 basis pointsdown 3 cents from the previous reference. The yield on the benchmark 10-year BTP also fell slightly, recording a first position at 3.93% compared to 3.94% at last Friday’s close.
Despite starting in the red, Paris has started to recover ground and the spread between French ten-year government bonds and German ten-year bonds has also remained fairly stable, around 62 points.
