Bags, Europe starts 2023 on the right foot. Cars and petroleum workers run in Milan

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(Il Sole 24 Ore Radiocor) – Positive debut for the European stock exchanges which, orphaned by Wall Street closed for holidays, end the first session of the year on the rise, in an attempt to archive a 2022 to forget for the stock markets (bonds included). Trying to put aside what have been the reasons for greatest concern in the last few sessions, starting with the flashback of the pandemic in China coinciding with the end of the “Zero Covid” policies adopted so far by Beijing, the price lists of the Old Continent , even amid reduced trading, were driven up by auto, retail and energy purchases. At the end of the day, the FTSE MIB in Milan, the French CAC 40, the DAX 30 in Frankfurt and the Spanish IBEX 35 index closed higher.

EU manufacturing improves, but remains in contraction

At the macro level, it emerged that European manufacturing activity improved in December, despite remaining in contraction. the maximum in three months. «During the last month of 2022, the intensity of the contraction in the manufacturing sector of the Eurozone decreases, with theeasing of inflationary pressures and more stable conditions of the supply chain, factors that have given respite to the producers of goods», remarked the IHS Markit institute, underlining the weakness of customer demand in the form of a drop in new orders received: «Companies have transferred the greater production capacity in the reduction of outstanding work. At the same time, in December, despite the collapse in the volume of purchasing activity and production, new increases were recorded in inventories of production factors and finished products. Said this, employment growth continues».

In Piazza Affari, oil and cars are in the lead, snatching Mps

In Piazza Affari, at the end of the day, Stellantis stands out waiting for the data on Italian registrations (with closed markets), even if by now the group records the bulk of its turnover in the States. In the automotive sector, Pirelli & C and Iveco Group also stand out. The purchases then rewarded the ‘oil’ shares with Eni, Saipem and Tenaris. Well tuned in the first session of 2023 utilities and banks. Telecom Italia also made up for the slowdown of December 30, in the hope that a solution will soon be found for the network. The Minister of Enterprise and Made in Italy, Adolfo Urso, said he was confident. Among the few stocks bucking the trend is Diasorin and Amplifon (which on the eve had recorded the best performance of the Ftse MIb). Out of the main basket, a tear for Banca Mps, driven by reassurances on business continuity and bets on imminent extraordinary operations that allow the MEF to exit the capital. In detail, the institute reiterated that the significant doubts on business continuity that had been declared in previous reports after the 2.5 billion euro capital increase, which was successful in recent months, have been overcome.

Spread closes down to 211 points, yield falls to 4.56%

Closing in fractional decline for the BTp/Bund spread in a context of general decline in yields on Euro bonds. At the end of the session, the spread between the ten-year benchmark BTP and the same German maturity was indicated at 211 basis points, down by 1 basis point compared to the 212 basis points of the last reference. The yield on the ten-year benchmark BTP dropped sharply, ending the session at 4.56% from 4.68% on 30 December last year.

Euro remains in the 1.06 dollar area, gas rises in the final

Finally, on the currency market, towards the end of the session the euro was worth 1.0663 dollars (from 1.0680 at the close of 30 December) and 139.37 yen (140.85), while the dollar/yen cross stood at 130, 69 (131.82). The price of gas in Amsterdam dates back to the end, with the February future standing at 78.9 euros per MWh, an increase of 3.4 percent.