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(Il Sole 24 Ore Radiocor) – Tonic session for European stock exchanges, with the European Stoxx600 at historic highs and Piazza Affari still at a good pace after having regained and exceeded 32,000 points the day before, a threshold not seen since June 2008. Supporting the indices is the good performance of the banking sector which has reported at 2016 and technology levels, supported by the record accounts of the American semiconductor giant Nvidia. So they’re up sharply FTSE MIB of Milan, with the Tenaris rally after the accounts and of St, as well as the CAC 40 of Paris, and the DAX 40 of Frankfurt, the best in the Old Continent despite the contraction in manufacturing activity in February with the PMI index at 42.3 points, down from 45.5 in January, to a 4-month low. Also goodIBEX 35 in Madrid, l’AEX of Amsterdam and the FT-SE 100 from London. On the Asian front the NIKKEI 225 it closed at +2.2%, exceeding the historical record of 1989.
All attention is focused on the ECB minutes relating to the January meeting, after the need for “greater progress” on inflation before cutting interest rates emerged from those of the Federal Reserve. Bankers reiterated that the peak in rates has “probably” been reached, but the risks to inflation determined by geopolitics and rising wages are increasing. The bankers then confirmed that, in their opinion, there are risks from easing monetary policy “too quickly”.
ECB closes 2023 with a loss of 1.26 billion, first red since 2004
The ECB balance sheet for 2023 shows a loss of 1,266 million euros (it broke even in 2022) which will be carried forward into the ECB balance sheet to be offset against future profits. This loss takes into account the full release of the financial risk provision, equal to 6,620 million euros, which partially covered the losses suffered during the year. The overall loss, without using the provisions, would therefore have been equal to 7.88 billion euros. For 2023, the ECB will therefore not provide any distribution of profits to the national central banks of the euro area. This is the first budget loss for the ECB since 2004 when the central bank recorded a loss of 1.6 billion euros due to the devaluation of foreign currency reserves as a result of the sharp strengthening of the euro which reached above 1, 36 on the dollar.
Spotlight on Tenaris after accounts and on tech with Nvidia
As regards individual stocks, the rally of Tenaris which released the 2023 accounts, significantly higher than forecast with profits and revenues above expectations both in the quarter and in the year and the proposal of a dividend of 0.60 dollars/share for a total of 700 million. Among the technological, with Stmicroelectronics among the best in Milan, Nvidia is leading the way (+9% in the afterhours on Wall Street) which reported record revenues of 22.10 billion dollars, up 22% from the third quarter and 265% compared to a year earlier, against expectations for 20.62 billion, and earnings per share of 5.16 dollars, up 28% compared to the previous quarter and 486% compared to a year earlier, against 4.64 dollars consensus. The good performance of the banking sector continues with Banca Mps e Bpm Bank in light. Opposite front for Hera e Terna .
Spread falling below 150 points
Yields and spreads showed little change among Eurozone government bonds after the publication of the Federal Reserve minutes relating to the meeting at the end of January in which US bankers highlighted the risks of cutting rates too quickly. The yield of the benchmark ten-year BTp (ISIN IT0005560948), which on Wednesday had risen like the others in the Eurozone, grows again to 3.96% from 3.94% at the previous closing. However, the differential with the German Bund of the same maturity drops to 149 points from 150 at the closing the day before.
2024-02-22 12:00:00
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