On Friday 7 July Milan closed at +1% after the US jobs data which saw the creation of fewer jobs than expected, at its lowest since December 2020

Negative first week of July for the European indices. After the increases achieved in the first half of the year, the lists are taking a breather with the Eurostoxx down by 3.2% and the Stoxx Europe 600 by 3.1% compared to Friday 30 June. Piazza Affari limits the damage compared to the main indices of the Old Continent with the Ftse Mib in the red by 1.6% in the eighth. More marked declines in Frankfurt (-3.4%), Paris (-3.9%), Madrid (-3.6%) London (-3.6%) and Amsterdam (-2.6%). Among the stocks, queen of the week in Milan is Saipem (+14.5%), followed by Nexi (+5.7%). Opposite signs for Amplifon (-9.8%) and Interpump (-5.8%).

Friday Milan +1% after data on US jobs

Banking and oil companies push Piazza Affari which closes the last session of the week in the pink jersey, with the FTSE MIB +0.98% up well, followed by the indices of Paris (CAC 40 +0.41%) and Frankfurt (DAX 40 +0.48%). Conversely, Madrid (IBEX 35 -0.38%) and London in the queue. Weak Wall Street After a flare-up recorded immediately after the publication of the US employment data, with the lowest new job creation since 2020, the European stock exchanges slowed, but remained above the pre-data lows. However, the numbers are crucial to understand whether the Federal Reserve will raise interest rates again after the recent break: 209,000 jobs were created in June, below estimates, and unemployment fell to 3.6%. However, analysts remain convinced that the Federal Reserve will continue its course on monetary policy. “There is nothing in the data that would cause the Fed to hold back a rate hike in July,” said Greg Wilensky, Janus Henderson’s head of US Fixed Income.

Lowest US job creation since December 2020
June’s US jobs report is lower than estimates: 209,000 jobs were created last month (excluding the agricultural sector) compared to the previous month, while analysts expected an increase of 240,000. May’s figure was revised from 339,000 to 306,000, April’s from 294,000 to 217,000. Unemployment fell from 3.7% (confirmed figure) to 3.6%, in line with expectations. Average hourly wages increased 12 cents, 0.36%, to $33.58; compared to a year earlier, they increased by 4.35%. The average working week increased by 0.1 hour to 34.4 hours. Labor force participation was 62.6%, 0.8 percentage points away from February 2020 levels, before the start of the coronavirus pandemic.

In Europe purchases on raw materials and banks down on utilities

Mainland purchases are focusing on commodities, banks and autos (utilities down). Iveco Group did well in Piazza Affari +3.74%, but the best was Saipem +4.69% in the wake of the rise in crude oil. Nexi did well +1.66% on the ferment in the digital payments sector after the Worldpay operation. Among the banks in the lead Bper Banca +2.70% and Banco Bpm +2.22%. At the bottom of the list are utilities, also penalized by the rise in yields on government bonds. Amplifon -1.68% down with Intermonte cutting the rating. Cold market on Generali Ass -0.10% after the acquisition of Conning. Finecobank rally +3.00% again thanks to inflows above expectations. Outside the Ftse Mib, the Mfe is flat with analysts convinced that continuity in the governance of the “Fininvest galaxy” will reduce the speculative appeal.

Spread closes down to 173 points, 10-year decreases to 4.35%

Closing in slight retreat due to the spread between BTp and Bund. At the end of the session, the yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the German bond of the same duration stood at 173 basis points, from 175 points at yesterday’s closing. There was also a slight decrease in the yield on the ten-year benchmark BTP, which scored a last position at 4.35% from 4.38% of the previous reference.