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The spread between German BTPs and Bunds widens above 220 basis points, with the 10-year Italian yield exceeding 2.5%. From the recognition of the Bank of Italy, it appears that in May the spread of the spread, when the institutional confrontation occurred before the birth of the Lega-M5s government, foreign investors have "discharged" 25 billion euros of construction. According to MPS badysts, the tensions could come back: "For the moment," they note, sales of these hours "could be identified as profit after the rally of the last days, but the situation could deteriorate if it there was a resignation by Tria ".
The euro rises above 1.16 dollars. The single currency changes hands at 1.67 dollars, which gives something against the yen at 131.02. The Japanese currency also gains to the dollar at 112.38 yen. On the macroeconomic front, German producer prices rose 0.3% in June, in line with expectations. At a trend level, the increase was 3%. Analysts have indicated a level 0.1 percentage point lower. The first quarter public accounts updates come from Eurostat: the euro area deficit / GDP fell to 0.1%, debt / GDP rose to 86.8%. For Italy, the first parameter is not available, while the debt reaches 133.4%. Few others to report in the agenda, excluding some US quarterly as Ge and Honeywell
In Asia, trade was weak, but then improve the last session with the voice of the intervention of the Chinese Central Bank in support of the yuan. Factor that pushed Shanghai by closing at + 2%. Also this morning Tokyo Stock Exchange closed instead of 0.29%. Consumer prices in Japan, excluding perishable goods, increased 0.8% in June compared to the same month of 2017. There was a slight acceleration compared to the 0 increase, 7% recorded in May. The results are in line with expectations and remain far from the 2% inflation target agreed between the Shinzo Abe government and the Japanese central bank in early 2013. The market's rise has also reacted negatively to the weakening of the yuan came after the Chinese central bank's decision to significantly lower the benchmark rate that is determined daily and around which the currency can fluctuate only in a range of 2%. The yuan thus led to 6.8 for a dollar, and then resumed ground with rumors of an intervention by the authorities to support the exchange rate. The yen, on the other hand, has strengthened, weighing on the values exported
Last night Wall Street closed in red with the Dow Jones which left 0.53% on the ground. The indications of the quarterly have been contrasted so far, while the institutional confrontation between President Trump and the Fed stirred the waters. In an interview with Cnbc he stated that he was not happy about rate hikes, even though shortly after the White House said that Trump did not want to interfere with the central bank and that he respected his independence. The President's retribution is that rising rates makes the dollar stronger, while Europe still has the "easy money" of the ECB's ultra-expansive policy and that in China, the currency is at its lowest in a year. In short, Trump does not want to see the measures taken by him on the market canceled by the market. At the close of trading, Microsoft released its accounts: they exceeded expectations and the aftermarket title rose. The S & P500 fell 0.40%, the Nasdaq sold 0.37%
oil price rising in the Asian markets because of rumors that Saudi Arabia would not be willing to increase production. Riad has hinted that exports will be the same as in June and will drop by 100,000 barrels a day in August. WTI futures earn 19 cents to 69.65 dollars a barrel, those of Brent 32 cents to 72.90 dollars
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