by Stefania Arcudi
The dollar weakness continues on the eve of the earnings season. In Milan, Moncler and Telecom stand out
3′ of reading
(Il Sole 24 Ore Radiocor) – In the aftermath of a brilliant session, with the markets encouraged by the slowdown in inflation in the United States, the European stock exchanges open cautiously higher. Support comes from Wall Street, which finished sharply higher on the eve, with the S&P 500 at its highest since April 2022, and from Asian markets, where Hong Kong rises by more than 2 points and Tokyo finished up 1.49% . While waiting for new macroeconomic indicators (in the USA numbers on labor and producer prices are arriving), attention in Europe is catalysed by the meeting of the Eurogroup and, above all, by the minutes of the last meeting of the ECB, useful for having indications on the Eurotower’s next moves, even if it seems likely that it will continue along the path of an aggressive strategy. This while the earnings season is about to begin, which in the United States gets underway tomorrow with the first major banks.
Thus the indices, which are looking for the fifth session of consecutive increases, start off on the right foot: Milan, after having closed yesterday on the highs of 2023 and at levels not seen since September 2008, sees the FTSE MIB on the rise. It also grows CAC 40 of Paris after the inflation data (+0.2% on a monthly basis and +4.5% year on year, at a slower pace than the +5.1% in May). They also earn the DAX 40 of Frankfurt, theIBEX 35 of Madrid andAEX of Amsterdam. Further back London, on parity.
In Milan, Moncler and Telecom stand out
As for the titles, they are among the best of the Ftse Mib Moncler which extends the positive series that began last July 6 (+6.8% in four sessions to the previous closure and +8% including today’s increase), in the wake of the luxury sector throughout Europe, and Telecom Italia which successfully placed a 750 million euro bond with a five-year maturity. The main price list continues smoothly, with remember e Azimuth in light and Cnh Industrial in line. Slow down the run by Stmicroelectronics, among the best on the eve and awaiting the bills. They will be published at the end of the month and analysts expect the positive trend to continue, with confirmation of the guidance.
Tokyo closes positive, reassured by US inflation
Positive session for Tokyo Stock Exchange buoyed by sharply declining inflation figures in the United States, suggesting a slowdown in the Fed’s ongoing monetary tightening. The Nikkei index of 225 leading stocks closed up 1.5% at 32,419.33 points. Among the shares, SoftBank rose after the indiscretion of the Financial Times according to which the US semiconductor giant, Nvidia, is in talks to become the reference shareholder of Arm, the British microprocessor specialist currently owned by SoftBank, and which should return introduced on the stock exchange in a few months. Nvidia originally intended to buy Arm, but this mega acquisition fell apart in early 2022 due to excessive regulatory hurdles. Other tech giants like Intel would also be in the running to take shares of Arm.
Dollar continues weak, oil moved little, gas falls
In terms of currency, the weakness of the dollar continues, which yesterday slipped to its lowest in 15 months against the euro after the inflation data and to its lowest since mid-May against the yen: the euro changed hands at 1.1141 dollars ( 1.10 at the previous closing) and 154.35 yen (153.84), while the dollar/yen exchange rate is 138.567. Oil prices showed little change: August WTI futures rose by 0.2% to 75.9 dollars a barrel, those of September Brent by 0.3% to 80.31 dollars. Natural gas traded in Amsterdam was also down: August contracts, after having scored a first position at 27.1 euros per megawatt hour, fell by 3.3% to 25.76 euros.
Spread with Bund at 171 points, yields are down
Positive opening for the prices of government bonds traded on the electronic secondary Mts. There is a generalized appreciation of prices, with a consequent drop in yields, in the light of the US macro data on inflation on the eve of which change market expectations for the next monetary policy moves by the Fed. The appreciation of Italian bonds allows for a slight closure of the spread with Bunds. After the very first trades, the yield differential between the ten-year benchmark BTP (Isin IT0005518128) and the German security of the same duration is indicated at 171 basis points from the 172 basis points of the closing on the eve (177 points on Tuesday’s closing). The decline in yields for ten-year BTPs continues: at the start it is at 4.21% from 4.27% on the eve (4.41% two days ago).
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Stephanie Arcudi
Radiocor editor
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2023-07-13 08:48:45
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