The latest exchange of fire between the U.S. and Iran, with Gulf countries in the crosshairs, is fueling uncertainty in the markets. Nervousness earlier in Asian markets, following a mixed session on Wall Street—with the Nasdaq down and the DJIA up—with Brent crude at $91.50 per barrel, the 10-year yield at 4.54%, and the VIX/CBOE up 5.02% to 19.87 points.
According to BofA, an interest rate hike by the ECB is inevitable. Tomorrow, the first hike—by 25 basis points, bringing the key rate to 2.25%—is expected, with uncertainty as to whether a second (almost certain) and possibly a third hike will follow later in 2026. With all that this implies for the already struggling European economy and business sector.
Growth forecasts for the Eurozone stand at 0.9%—1% for the European Union—with inflation estimates at 3.1%, resulting in a stagflationary environment. At this juncture, the joint statement by the Nordic and Baltic countries regarding Ukraine’s accession to NATO and the EU. It appears that Europe will head into June (and we’ll see) with both fronts (Ukraine, Iran) still open, with all that this entails.
Sellers took the lead yesterday in Frankfurt, Paris, and elsewhere, despite some encouraging signs for the German economy (a 0.4% increase in industrial production in April and a 0.9% rise in exports during the same month). DAX futures are slightly lower, in line with those of the S&P 500; the DAX stands at 24,433 points following a 0.74% correction yesterday, Tuesday.
The Greek stock market is at a four-month high, with the General Index at 2,385.63 (1.41%), led by the banking sector and specifically blue-chip stocks.
The DTR stood at 2,709.86 (1.40%), the FTSE 25 at 6,054.58 (1.49%), following a session with a turnover of 335 million—with 64 million via pre-arranged orders—and 224 million in the four systemic stocks plus OTE and PPC. A block trade of 1.10 million OTE shares at €19.20 stood out (at 5:12 p.m.). Kostas Nembis did not “reveal his hand” at the general meeting of the Telekom group, with HAMailontas having information regarding Nova, etc.
In the range of 2,680–2,721 points, trading in banking stocks is active on the Athens Stock Exchange, with the cash-out window opening today for shareholders of Eurobank and National Bank. Ex-dividend dates (for the dividend) are set at 0.7187 and 0.294 euros, respectively, effective Monday in shareholders’ accounts.
Tuesday’s “undiscounted” closing prices stood at €3.995 and €14.715.
Under the accelerated book-building process, book building opens today for Motor Oil’s 5-year bond, worth €400 million (brokers estimate the yield at around 4%).
Yesterday’s session was mixed for blue-chip bellwethers, with significant inflows and gains for shares of Metlen Energy & Metals (with the Athens Stock Exchange having information about interest from foreign funds) at 42.10 (3.49%), Allwyn at 13.47 (3.50%), Lamda Development at 6.475 (3.93%), Coca-Cola HBC at 51 (2.62%), and PPC at 22.14 (2.31%). But also with profit-taking, mainly in Cenergy Holdings (23.66), Viohalco (19.90), and ElvalHalcor (4.90).
Satisfactory leverage in specific FTSE Mid Cap stocks, notably Ideal Holdings, Bally’s/Intralot, Autohellas, EXAE, as well as in mid-caps such as Thrace Plastics, Lavipharm, Fais, EKTER, AVE, Elinoil, Noval, Frigoglass, etc., with a clear intention to maintain the market sentiment, provided that the large caps “allow” it.