The first week of March starts well for the stock exchanges. Milan bringing up the rear

market day

The lists, however, slowed down in the last session, with the good data on the US labor market that fueled fears about inflation and pushed the yield of US Treasuries to the top for a year

by Eleonora Micheli and Flavia Carletti

The Stock Exchange, the indices of today 5 March 2021

The lists, however, slowed down in the last session, with the good data on the US labor market that fueled fears about inflation and pushed the yield of US Treasuries to the top for a year

March 5, 2021

5 ‘of reading

Fears about the trend in inflation and the consequent performance of world government bonds held their ground also in the first week of March, after shaking the lists in February. The month, however, started well, with a positive balance for the European stock exchanges, despite the slowdown recorded in the last eighth sessions. Numbers in hand in five sessions the Stoxx600 Europe gained 0.91%. The best performance on a weekly basis was that of London (+ 2.27% on the Ftse100), the weakest that of Piazza Affari, which gained only half a percentage point with the Ftse Mib. The Cac40 in Paris rose by 1.39%, the Dax30 in Frankfurt by 0.97% and the Ibex35 in Madrid by 0.75%. At the sectoral level, the sectors that performed the most in the eighth were the Auto (+ 4.94%), Banks (+ 4.33%) and Oil & Gas (+ 4.18%). the latter was dragged by the rise in the price of crude oil, with the wti rising by more than 7%. After all, the OPC + met and, in spite of expectations, confirmed the production cuts. On the other hand, the technology sector continued to suffer, as it did at the end of February, losing 4.81%, affected by the weakness of the Nasdaq. On a weekly basis in Piazza Affari, the titles of Tenaris (+ 10.76%) and Eni (+ 6.12%) stood out, benefiting from the trend in the price of crude oil and expectations for the recovery of the economy. Mediobanca also did well (+ 5.2%), on the announcement that Francesco gaetano Caltagirone bought shares, increasing over 1% of the capital. Opposite sign for Stmicroelectronics (-11%), followed by Amplifon (-8.97%) which published the 2020 accounts and announced a capital increase. Inwit also went down (-4.82%).

As for the session on Friday, the European stock exchanges they closed down. The better-than-expected US labor market data was not enough for the markets, which, apart from an attempt to rebound in the afternoon, continued to lose points. Wall Street itself, after a tonic start, has changed the pace. Moreover, investors have doubts about the moves of central banks, which could revise their particularly accommodative monetary policy, in the event that the economy rears its head, causing inflationary flares. And it is precisely the data on the labor market that reinforces this hypothesis. Jerome Powell, the head of the Fed, has tried several times to throw water on the fire, recalling that the US economy is proceeding at a slow pace. In addition, the banker stressed that even if inflation exceeds 2%, it would not entail an immediate revision of monetary policy, which therefore remains appropriate for now. Investors, however, at this point want deeds, more than words and in fact they have also been disappointed precisely by the fact that no concrete actions have been announced to curb the rise in bond rates. Today the 10-year Treasury yield has pushed to 1.62%, a level not seen for more than a year, before returning to the 1.56% area. Milan closed down 0.4%, with the spread that in the last few minutes has returned below the 100 point threshold.

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In the US + 379 thousand jobs in February

The European stock exchanges tried to raise their heads in the afternoon after the publication of the data on the US labor market, which was better than expected. Piazza Affari is atrrivata to mark an increase of 0.7%. In the United States, 379,000 jobs were created in February compared to the previous month, while analysts expected an increase of 210,000. Unemployment fell from 6.3% in January (unchanged) to 6.2%, against expectations for a confirmation of 6.3%. The good US data immediately pushed bond yields up: the ten-year TReasury reached the 1.62% threshold, immediately causing a shower of revenge on shares. It is no coincidence that both Wall Street and the European stock exchanges have weakened. As if that weren’t enough, the picture is complicated at a global level: China has in fact revised its economic estimates for 2021, expecting GDP growth of 6% instead of 8%.

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In Piazza Affari, oil with oil rises

On a day of sales, oil shares did well on Piazza Affari, benefiting from the trend in the value of crude oil, which continues to run, after Opec + granted only Russia and Kazakhstan a slight increase in production for the month in April (a total of 150 thousand barrels per day), while the other countries confirmed the cuts already in place in production, in the face of expectations for an increase. The contract delivers April on Wti earns about 3%, encouraging purchases in the oil sector. In Milan the Saipem (+ 3.33%), the Tenaris (+ 3.1%) and the Eni (+ 1.88%).

Banks are doing well too. Under the lens Tim and Stellantis

Positive trend for bankers too, despite losing momentum at the end of the session:Banco Bpm + 0.64%, Mediobanca + 0.6%,Bank Pop Er + 0.6%, Unicredit + 0.26% e Intesa Sanpaolo + 0.11%. On the other hand, managed savings are weak: Banca Generali-2.05%, Azimuth-1.64% e Mediolanum Bank-1%, the latter on the day in which the data on the February harvest were released. He was an exception Finecobankk which remained positive (+ 0.49%). At the bottom of the main price list it has closedInwitt (-3.7%), despite having published upward accounts for 2020 last night. Market participants do not attribute the movement to fundamental reasons but rather to adjustments related to the current market scenario with rising rates. Since the beginning of the year, Credit Suisse points out, the stock has lost 16% (until yesterday) precisely on the concern linked to the trend in sovereign bond rates even if having an activity with inflation-linked contracts, the price outlook should give a benefit to profits. Telecom Italia, which is a shareholder of Inwit, closed positively even if below the highs of the day (+ 0.5%), consolidating the progress of the eve. The subsidiary Tim Brasil has announced the start of exclusive negotiations with Ihs Brasil, a company of the tlc infrastructure group, to enter the newco FiberCo Solucoes de Infraestrutura which will collect the residential assets and services of optical fiber infrastructure and which will operate in the wholesale market providing connectivity and transport network to third parties. Also among the best sellersNexii -3.54%, Unipol -3.19%, St -2.73% e Amplifonn -2.72%. Stellantis closed down 1.16%, following the announcement of the distribution to shareholders of the stake in Faurecia (-2.7% on the Paris stock exchange) held by PSA and the € 308 million that the French group has already cashed by selling part of its stake. The assembly is called on Monday to give the green light to the distribution. Exor, the main shareholder of Stellantis, lost 2.03%, in a negative session also for the subsidiariesCnh Industrial-1.77% e Ferrari -1.72%.

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