US inflation soars to a record since 1981. Stock exchanges are still down, Saipem again crashes in Milan


US inflation soars to a record since 1981. Stock exchanges are still down, Saipem again crashes in Milan
Written by aquitodovale

(Il Sole 24 Ore Radiocor) – US inflation skyrocketing, with June consumer price data leaping to 9.1% annually, the highest since November 1981, caused first Wall Street and then European stock exchanges to skid, which then partially recovered ground and they closed above the session lows. Thus the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 40 in Frankfurt, the IBEX 35 in Madrid, the FT-SE 100 in London and the AEX in Amsterdam finished downhill.

High inflation is for the Federal Reserve the signal to continue with aggressive policy of increases in interest rates, despite the risks of recession, and on the market leads to consolidate expectations of a rise in the cost of money by 75 basis points, or even more, as some analysts hypothesize. Instead in the Old Continent there ECB moves on completely different scenarios: the energy crisis that shows no signs of finding outlets and the recession scare investors and suggest that Frankfurt could slow down the pace of the squeeze. To suffer the consequences first of all the euro, dropped below par with the dollar in the session of 12 July for the first time since 2002 and again today, only to rise above that threshold.

Heavy Wall Street, top inflation since 1981

Wall Street is also down, after annual inflation climbed 0.5 points to 9.1%, the highest since November 1981. June consumer prices rose 9.1% year-on-year, while consumer prices analysts had expected the overall figure, which includes energy and food, to rise to 8.8%, a record, after the 8.6% annual recorded in May. According to some analysts, however, it may have peaked as oil and gas prices have fallen and should continue to do so. On Tuesday, WTI oil at Nymex fell $ 8.25, up 7.9%, and closed at $ 95.84 a barrel, the lowest close since April 11, while in today’s session it rose 0.6%. at $ 96.45.

In Piazza Affari increasingly down Saipem, weak banks

On the stock market, Saipem’s decline continues, ending at € 1.107 per share, plummeting towards the subscription price of the new shares, equal to € 1.013, while the auction of unexercised rights ended. banks, on the eve of the quarterly reports of the first “big” Americans (JpMorgan and Morgan Stanley publish the accounts for the second quarter), and cars, among the worst in all of Europe. Limits losses Exor which has announced that it has completed the sale of PartnerRe to Covea for 9.3 billion dollars. Out of the main list, Brunello Cucinelli comes up after the numbers of the first semester. Finally, a brilliant debut for GM Leather: the stock closed at 1.83 euros per share, after having registered a first price of 1.915 euros and then rising to 1.95 euros, against a placement price of 1.75 euro per share. This is the eleventh admission since the beginning of the year on the Borsa Italiana market dedicated to small and medium-sized enterprises and brings the number of companies currently listed on Euronext Growth Milan to 181.

Flare-up of the spread at the start, then closes at 209 points

Flare-up at the start for the BTp / Bund spread. In the early stages, the yield differential between the benchmark ten-year BTp and the German equivalent maturity touched 215 basis points, before falling back and returning below 210 points. At closing it was indicated at 209 basis points compared to 207 basis points of the previous closing. The yield of the benchmark ten-year BTp increased, but more contained compared to today’s opening at 3.27%, at closing at 3.24% compared to 3.20% of the previous reference.

#inflation #soars #record #Stock #exchanges #Saipem #crashes #Milan


About the author


Leave a Comment