Positive EU stock exchanges despite geopolitical tensions. Germany, GDP down 2.2% in the first quarter


MILAN – 9:00 am. Actions uncertain in the start of the week, with investors weighing on the one hand the exit of the economies from the lockdowns and on the other the renewed tensions between the United States and China, which also in the debate on the origin of the pandemic have found new gasoline. Pending the Ifo index on business confidence, from Germany confirmation of the drop of 2.2% of GDP in the first quarter and of 2.3% per year arrives early in the morning (worse since reunification with the exclusion of -4.7% at the beginning of 2019), discounting the effects in March of Covid: consumption fell by 3.2 and exports by 3.1 percent. Considering the already carried out revision to -0.1% for GDP in the fourth quarter of 2019, the technical recession (two consecutive quarters in red) for Berlin is therefore confirmed. On the other hand, a positive prospective signal arrives: theindexIfo, one of the main barometers of the German economy because it measures business confidence, improves in May and rises to 79.5 points, above the expected 78.3 points and against 74.3 in April.Reasoning on these data, the EU markets are proceeding positively. Frankfurt strengthens to + 1% after the Ifo, Paris rises by 0.7% while Milan it is only slightly delayed (+ 0.6%) with the thud of Atlantia on the new confrontation with the government for the issue of concessions.
Today’s volumes are expected to be weak, thanks to the closure of American exchanges as well as to London and Singapore. On Wall Street, note Bloomberg, there is a huge gap between the performances of the Dow Jones and the Nasdaq technology, a symbol of how the “old” index pays more for the presence of companies that are receiving a tremendous blow from Covid. While the American blue chips are down 14% as an annual balance, the tech list is 7% positive.In Asia, the day ends contrasted: Tokyo it manages to earn 1.7%, with investors relieved of the end of the state of emergency which should be made official in close turn. In addition, the Bank of Japan (the BOJ) announced a new business aid plan on Friday. In total, since the beginning of the crisis, Japan has developed a plan to support the economy of 75 thousand billion yen, the equivalent of 640 billion euros. The attidine a different instead Hong Kong which still slips by one percentage point.

The spread between BTP and Bund opens stable at 209 points, on the levels of the closing last Friday. The 10-year yield advanced 1.602%, after closing below 1.6% last week.

On the currency front, the PBOC, the Chinese central bank, depreciated the yuan by 0.33% against the dollar, setting the exchange rate between the greenback and the Beijing currency at 7.1209, the lowest since 2008, against the previous 7.0939. The parity takes into account the losses suffered by the yuan after the Beijing proposal on the new Hong Kong national security law. A move that reported the clashes between police and protesters, with at least 180 arrests in Hong Kong, where yesterday was a new day of protest; if the final approval of Beijing arrives, the US would probably trigger sanctions. L’EUR opens below $ 1.09 while geopolitical tensions generally lower risk appetite: the European currency changes hands at $ 1.0890 and 117.28 yen. Dollar / yen rises to 107.70. Yuan and Australian dollar fall back.

The price of the Petroleum despite rising tensions between the US and China over Beijing’s national security law in Hong Kong. On the Asian markets, futures on the Light crude Wti increased by 1% to $ 33.58 and those on the Brent by 0.5% to $ 35.28. Prices reopen positively on prices, with Italy and Spain preparing to gradually reopen borders. Despite the general uncertainties, the prices of thegold – which usually benefit from the status of refuge – are slightly down on the Asian markets: the bar with immediate delivery loses 0.4% at $ 1,728 an ounce.

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