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Europe nervous on the eve of the Fed, Walmart alarms Wall Street. Gas over 200 euros

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Europe nervous on the eve of the Fed, Walmart alarms Wall Street.  Gas over 200 euros
Written by aquitodovale

(Il Sole 24 Ore Radiocor) – Subdued session for the European stock exchanges, struggling with the nervous eve for the rise in taxi of the Fed, the quarterly report below expectations of Ubsthe “profit warning” of Walmart in the US and tensions between EU countries on the plan to reduce consumption of gas (whose price is now close to 200 euros per MWh). A mix of factors that contributes to bringing back the stock markets, with Milan taking the “black jersey” in the Old Continent, due to the consistent sales on bank stocks, with the FTSE MIB worsening at the end. Piazza Affari has not managed to raise its head even in front of the new estimates of theIMFwhich has cut the forecasts of the Eurozone but raising those on Italy’s GDP to + 3% in 2022. The expectations of the markets, however, are all aimed at the meeting of the Federal Reserve, on which the bets on the entity are multiplying of the squeeze, with some not ruling out an intervention of a full percentage point, while others believe that “the central bankers of the FOMC will vote for a 75-point increase in order not to weigh too much on the American economy”, for example, write the analysts of IG Italy.

Wall Street falls, Walmart’s “profit warning” weighs

Wall Street is down as investors try to digest a series of earnings reports, with mixed results and sub-optimistic growth forecasts, especially after Walmart lowered its growth estimate through late 2022. This week is the busiest of the season. in earnings, with 169 companies presenting their second quarter results: nearly half of the S&P 500 market capitalization. The first quarterly reports of the Big Tech are being watched with particular interest: Microsoft and Google-Alphabet will present the results at the close of the markets. And today is the day when the FOMC, the Fed’s monetary policy arm, begins its meeting which is expected to end tomorrow with an interest rate hike of 0.75 percentage points in an attempt to tame inflation.

In Milan sales on banks, energy is saved

In this climate, purchases in Milan are concentrated on energy stocks after the new cut in Russian gas supplies and the European agreement on consumption cuts: Italgas up in the aftermath of the quarterly report, Terna and Snam Rete Gas. Sales on banks, on the other hand, weighed down by almost -10% of UBS in Zurich after the announcement of disappointing financial results: Banca Pop Er, Banco Bpm and Unicredit which tomorrow will kick off the semester season for our credit institutions , while outside the banking sector, Moncler lost their stake on the eve of the accounts and Iveco Group.

FTSE Mib stock market trend

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Eni in “red” at the end in the first part of the session had benefited from the announcement of the new discovery in the Berkine North basin in the Algerian desert carried out together with Sonatrach. The discovery, the analysts of Banca Akros underline, “confirms that the group’s strategy is effective and improves the visibility of Eni’s production targets”. As for Saipem, the market is also preparing for the publication of the accounts for the second quarter, scheduled for tomorrow. Akros experts expect “a recovery of revenues and margins in line with the company’s 2022 targets”. The banks, as mentioned, are primarily affected by the bad reception given by the market to the quarterly report of Ubsas well as the caution of investors before the announcement of the balance sheet data and the strategy on Russia.

Euro down, gas above 200 euros / MWh

On the foreign exchange market, the euro lost its level to $ 1.0145 from $ 1.0209 at the close yesterday. The single European currency is also indicated at 138.62 yen (139.57), while the dollar stands at 136.64 yen (136.69). The price of oil rose, while the new cut in natural gas supplies to Europe announced by Russia is fueling tensions in the energy market: the WTI for delivery in September is trading at 98.12 dollars (+ 1.47% ), while the similar future on Brent is worth 106.49 (+ 1.27%). The price of natural gas in Amsterdam rose by 14% to 201 euros per megawatt hour.

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