MILAN – European stock markets are moving well. The views from the operating rooms are highlighted Jackson Hole, Wyoming, where the Central Banking Symposium is held from there (at 4pm Italian time) he will speak Jerome Powell in one of the most anticipated speeches in the financial world in recent years. He will have to explain that the Fed is ready to lower rates, which are now at the highest level they have been in for more than 20 years, but everyone will try to grab his words as a sign any on the size of the cuts, the time, the speed of the reduction.
Traders are expecting a quarter-point cut at the September 17-18 meeting, but will see a reduction of almost a percentage point by the end of the year.
The ECB is also involved. The numbers have reduced the salary range open to cuts in September and for Martin Kazakwho is on the governing council, “with the data we have now, I would be very willing to consider another rate cut in September”: very “dove” words for Latvia.
Japan is the one tuning in to another wave of frequency, where inflation in July rose to 2.7% annually compared to 2.6% in the previous month. The governor Kazakhstan said in Parliament, in his first public appearance since the market slump at the start of the month, that the Bank of Japan is still on track to raise interest rates if macro data remains in line with his expectations : “If we are able to confirm that the economy and prices will remain in line with forecasts, there will be no change in our position to continue changing the level of discount.”
European stock markets accelerate mid-session
European stock markets accelerate mid-session as a result of Fed governor Jerome Powell’s speech at the annual Jackson Hole conference, with Milan taking the pink jersey. From the words of the number one of the US central bank, investors look for signs of the size of the next cut (now priced in September) and those after that. Wall Street index futures were also upbeat after yesterday’s weakness due to profiteering. London advances by 0.38%, Frankfurt by 0.62% and Paris advances by 0.61%. Piazza Affari recorded +0.98% supported mainly by the energy sector, with Eni gaining 1.1%, Enel 1.36% and Terna 1.16%. Stellantis and Iveco car stocks were strong with increases of 1.79% and 1.90% respectively. Banking companies also performed well with Intesa Sp +1.42%, Banco Bpm +1.46%, Finecobank +1.32%, Mps +1.20%. Instead of loss for Brunello Cucinelli -0.88% and A2a which shook 0.05%.
The shares are missed, Zucchi falls on the stock market
Vincenzo Zucchi did not comply with some of the conditions set by the 18 million financing agreement signed with Illimity Bank in 2021 and for this reason he has to cancel the distribution of the division, a coupon of 0.1184 euros per share which was due on August 26. . The stock market did not like the surprise and the stock is down 10% to 1.89 euros. The installment, for a total of 2,999,281.09 euros, note remembers, should be paid from August 28. However, Zucchi confirms that “the financial covenants envisaged by the Facility Agreement have not been breached”.
Duties, now Beijing is focusing on cars with high mobility
Chinese imports of large engine cars from the European Union appear to be Beijing’s next revenge for the Brussels-decided crackdown on Chinese-made e-cars. Following the anti-subsidy investigation into the European dairy sector launched on Wednesday, the Ministry of Commerce’s finance department discussed increasing duty rates with representatives of the domestic auto industry today, state news agency Xinhua reported.
Milan will strengthen in the middle of the session
The Milan Stock Exchange continues to rise sharply near the middle of the session, with the Ftse Mib gaining 1.07% to 33,667.85 points. The intraday high reached 33,686.44 points, and the low reached 33,413.91 points. The main risers of the day included Stellantis (+1.97%), Iveco (+1.77%), Enel (+1.68%), Intesa Sanpaolo (+1.62%), Banco Bpm (+1.46%), Fineco (+1.43%) ), Terna (+1.42%), Unipol (+1.4%), Bper Banca (+1.32%) and Nexi (+1.24%). Brunello Cucinelli is down (-0.72%).
Eni, development plans in Indonesia OK. Descalzi: “basic level”
Eni announces that the Indonesian authorities have approved the development plan (pod) of the Geng North (North ganal psc) and Gehem (Rapak psc) fields. The integrated development of the two fields will create a new production hub, known as the Northern hub, in the Kutei basin. The Indonesian authorities have also approved the Gendalo&Gandang pods (ganal psc). In addition, Eni has received a 20-year extension of certain licenses from the Indonesian authorities. So Eni, we read in the note, “currently produces a large production of gas and condensates for both the domestic and international markets, using collaboration with the structures that ‘ already in the area”. Eni CEO Claudio Descalzi said: “The approval of the development plans marks a fundamental step towards the final investment decision for the two gas projects, in line with our decarbonisation and energy security strategy”.
Europe is rising looking at Powell
European stock markets are rising as are US futures as the dollar has begun to weaken against the euro again, after yesterday’s recovery, as well as losing ground against the yen, with the Japanese currency strengthening due to the ‘hawkish’ tones of the Bank of Japan governor. Milan marks the best performance (+0.92%), ahead of Frankfurt and Paris (both +0.5%) and London which is proceeding more cautiously (+0.22%). The attention of investors is completely focused on the speech that Fed number one, Jerome Powell, will hold at 4 pm Italian time in Jackson Hole even if it is unlikely that he will give precise indications of the size of the next cut, so far it is expected to be. 25 basis points every September and of the same amount in the two subsequent positions before the end of the year. In addition to focusing on the progress made in fulfilling the mandate to keep inflation at bay, analysts hope that it will not disappoint and at least give signs of future path of monetary policy in the US. In Piazza Affari, Iveco (+1.77%) and Stellantis (+1.7%) stand out while profit taking keeps Cucinelli in the negative (-0.99%), the only one in the main basket . In Zurich, the only list that has a minus sign (-0.15%) suffers from Nestlé (-2.2%): the change of the CEO has raised doubts about the ability of the Nescafè group to meet its profit goals to achieve.
The open price lists are on a positive note
The main European stock markets open the final session of the week on the rise, awaiting the speech of the chairman of the Federal Reserve, Jerome Powell, who will speak at a conference of central bankers there the Jackson Hole. In the first minutes of trading, Piazza Affari advanced 0.35% to 33,426 points, Frankfurt started trading at +0.21%, Paris registered +0.17% and London +0.25%.
Tokyo closes up 0.4%
The Japanese stock index Nikkei rose 0.4% to close at 38,364.27 points, thanks, according to analysts, to possible changes in conditions before Powell’s speech. Even governor Boj Ueda’s words about confirming the line on interest rates would have reassured operators. The overall Topix index also did well, gaining 0.50% to 2,684.72 points. Among the rising stocks, Asics gained 3.8%, Taisei 3.7% and Orix 3.3%.
Mixed bags in Asia
Asian stock markets remain mixed. Towards the end of the session the Nikkei in Tokyo remained positive at +0.35%. Hong Kong, however, loses 0.34%. Shanghai lost 0.06%. On the other hand, Shenzhen gained 0.14%. In Seoul the Kospi is almost flat, at +0.02%.
2024-08-23 11:07:48
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