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Stock exchanges slow down, ECB ready to hike rates in July. Milan discounts maxi coupons impact

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Stock exchanges slow down, ECB ready to hike rates in July.  Milan discounts maxi coupons impact
Written by aquitodovale

(Il Sole 24 Ore Radiocor) – European stock exchanges are slowing down, while fears about the possible impact that monetary policy tightening may have on economic growth are returning to the center of investors’ attention. ECB president Christine Lagarde confirmed that Eurotower could raise rates in July. “Based on the current outlook – she added – it is likely that we will be able to get out of negative interest rates by the end of the third quarter.”
Thus, the CAC 40 in Paris, the DAX 40 in Frankfurt, the FT-SE 100 in London, the IBEX 35 in Madrid and the AEX in Amsterdam reduce earnings. The performance of the FTSE MIB in Milan, on the other hand, is affected by the “optical illusion” of the maxi coupon detachment: this week almost 10 billion in dividends are arriving from 60 companies, whose shares will negotiate from today net of the coupon. Among them 19 stocks of the Ftse Mib with an impact on the main index of 1.44%. Wall Street futures are also up, after recovering late in Friday’s session allowed the S&P 500 to avoid closing in “bear” territory.

In the first part of the exchanges, support came from the opening of American President Joe Biden, who defined a possible lifting of the tariffs imposed by the Trump administration on Chinese goods “under study”, according to the European stock markets in the first session of the week. In any case, prudence continues to guide investors’ choices, in light of the impact on economic growth of China’s monetary policy tightening and “zero Covid” policy: an outbreak in Beijing raises fears of the imposition of new lockdowns in the capital and is weighing on the performance of the People’s Republic price lists.

On Milan “optical illusion” coupon detachment

Among the big names of the Ftse Mib 19 are those that deal with the ex coupon. The most generous check is that of Generali which pays shareholders almost 1.7 billion euros, Eni and Intesa Sanpaolo instead will stop at just over 1.5 billion euros but in both cases it is only the balance on the accounts 2021 after the deposit already distributed in the autumn. A substantial amount for Tenaris (330 million but always for the balance), for Inwit (approximately 300 million) and for A2a (more than 280 million) while outside the Ftse Mib the total coupons of Unipolsai. The Ftse Mib companies that pay dividends are A2a, Amplifon, Atlantia, Azimut, Banca Generali, Bper, Diasorin, Eni, Finecobank, Generali, Interpump Group, Intesa Sanpaolo, Inwit, Italgas, Moncler, Pirelli & C, Recordati Tenaris and Unipol . After the detachment of 23 May, the next “rich” appointment for coupons will be that of 20 June with approximately 1.65 billion euros in distribution and two protagonists, Poste Italiane and Snam Rete Gas. On the other hand, Enel’s coupon balance was forwarded in July, which will put 1.9 billion into the pockets of its shareholders.

Gas prices drop to 85 euros / MWh, below pre-war levels

Natural gas prices in Europe return to levels prior to the Russian invasion of Ukraine. On the Dutch platform TTF, June futures in fact lost 3% to around 85 euros per megawatt hour, below the 87.5 euros of 23 February, the day before the invasion. Prices then shot up to over 210 euros per megawatt hour in the following days.

Spread remains above 200 points, yield at 2.98%

Little movement for the spread between BTp and Bund, on the secondary market MTS of European government bonds, after ending last week with a sharp rise triggered by the rise in Eurozone bond yields. The yield differential between the benchmark ten-year BTp (Isin IT0005436693) and the same German maturity is indicated at 203 basis points from the 204 points recorded at the closing on Friday. The benchmark ten-year BTp yield, which climbed up to 3% last Friday, is moving around 2.98% from 2.99% at the previous end.

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