The European stock exchanges reduce the drops at the end of the session, with Milan down by 0.67% to 23,566 points. Among the other lists, Frankfurt fell by 0.64%, Paris by 1% and London by 1.6%. Red also Wall Street with Dow Jones, S & P500 and Nasdaq losing about 1%.
Lo scenario macro
Macroeconomic data continue to weigh on investor sentiment, which yesterday saw inflation rise to 8.3% in April in the US, above expectations of 8.1%. Today, the US also announced that producer prices for final demand rose by 0.5% monthly in April, in line with economists’ estimates. Also in April, core producer prices rose by 0.4% (consensus + 0.6%) and those for personal consumption increased by 0.1%. The weekly requests for unemployment benefits in the United States increased by a thousand units to 203 thousand (194 thousand the consensus). In the meantime, some figures from the United Kingdom have been released. GDP in the first quarter recorded an increase of 0.8% compared to the previous three months and of 8.7% on an annual basis. The trade deficit then settled at 23.9 billion in March, while industrial production fell by 0.2% on the month (+ 0.7% on an annual basis).
On the geopolitical front
The government of Finland has reiterated its willingness to join NATO, but warns from the Kremlin: the risk is a “direct and open” conflict. The former Russian president, Dmitry Medvedev, a close ally of the president, Vladimir Putin, has warned the West that military assistance to Ukraine risks creating a conflict between Russia and NATO.
The gas rally
Oil prices rise again with Brent now worth $ 107 a barrel and WTI $ 106, after the Organization of the Petroleum Exporting Countries cut its estimates of world oil demand for this year, amid the effects of the lockdown for Covid in China and the war in Ukraine. In addition, the price of European gas has jumped (+ 9.29%) now to 102.75 euros per megawatt hour. Yields fell with the ten-year BTP at 2.72% and the BTP / Bund spread at 183 basis points.
The decline of the euro
On the currency, the latest data on US inflation is discounted by the single currency which changed hands at $ 1.03, yielding 1.42%. The pound also weakened, falling to 1.22 dollars (-046%). (All rights reserved)
