The stock markets are uncertain this morning: a lot of irons in the fire that could be difficult to digest. On the one hand we need to metabolize the surprising elections in UK, on the other hand we have to wait for the ballots in France over the weekend, while this morning the market was surprised by the collapse of the industrial production in Germany. Wall Street returns today after a day of holidays and before the bell there will be data on US jobs. Uncertainty over Biden's candidacy remains in the background. Eyes in Asia for the sparkle of Samsung. The new entry at Piazza Affari Goddess
United States returns after the holiday. Waiting for job data
Trading reopens on Wall Street today after the Independence holiday and before the bell rings the employment data will be released: unemployment rate and hourly wages for June. The focus is still on the Joe Biden's candidacy. According to rumors from the New York Times, a group of Dem donors is working to raise up to 100 million dollars for a sort of guarantee fund, called Next Generation Pac, which would be used to support an alternative candidate to Joe Biden. Leading the new initiative are Mike Novogratz, the cryptocurrency billionaire who supported Dean Phillips in the Democratic primaries, his collaborators and Hollywood director Andrew Jarecki. Supporters of potential replacements like Vice President Kamala Harris are scrambling to position their preferred successor. Ten-year Treasury Note at 4.35%. .
Asia: Samsung at over 3 year highs. Will you want to collaborate with Nvidia?
This morning in Asia Pacific the stock markets were little changed or tending towards weakness without the support of US trading. After a record-breaking session, the Nikkei of Tokyo loses 0,13%, with a weekly balance of +0,3%. The economic conditions of the country are improving slightly Japan in May. According to the Cabinet Office's preliminary estimate, the leading indicators (super index) would have reached 111,1 points, up 0,2% compared to 110,9 points in April. The data is in line with analysts' estimates. In the same period, the coinciding index which summarizes the current situation of the economy is indicated as increasing to 116,5 points from 115,2. The deferred index, which instead captures the prospects for the next 12 months (lagging index), is seen rising to 108 points from 105,9. However, they are decreasing family consumption in Japan by 0,3% on a monthly basis, after -1,2% in April, against analysts' expectations for growth of 0,5%. Also in May, the monthly average of household incomes workers, stood at 500.231 yen, with a nominal increase of 6,4% and 3% in real terms.
Hang Seng by Hong Kong -1% today and closes the week at +0,7% for the week. CSI 300 of the price lists of Shanghai and Shenzhen -1%, the week is about to end with a drop of 1,4%. Stocks in the manufacturing industry fall Chinese electric cars on the day ofintroduction of duties in Europe. Companies linked to travel and travel are rising travel after that by the government of Beijing new indications have arrived regarding the desire to boosts up services and infrastructure for . KOSPI index of Alone in contrast, +1%.
Samsung is up 3%, at the highest level of the last three and a half years, after the publication of the quarterly data, with which the South Korean technology giant announced better than expected operating profit guidance for the second quarter, thanks to the strong question of artificial intelligence. Analysts reported this morning the results of the memory chip business and the mobile phone area, in both cases better than expected. During the conference call, the company could provide information on the industrial collaboration program with Nvidia.
Lo yen strengthens, the cross reaches 160,76, after having reached the lowest levels of the last 38 years, even if the latest data on household spending distances the hypothesis of a major change in monetary policy.
Stock market today 5 July: what to follow in Europe
With a surprising result in the elections in the United Kingdom and with a run-off in the French elections over the weekend, European stock markets are about to end the week rather uncertain, while this morning's data on industrial production in Germany is worrying, as it surprisingly collapsed by 2,5%. .50% in May. The Euro Stoxx 2024 Sep 0,3 futures are up XNUMX%.
In UK, historic turn to the left: Labor triumphs with 405 seats out of 650. Starmer: “I will serve each of you, whether you voted for me or not.” Collapse of Sunak's conservatives, re-elected to his seat.
In France, the desistance was successful: 218 candidates withdrew and for Le Pen the absolute majority receded
The yield of German bund is at 2,60% and that of the BTP at 3,99% from 3,97% yesterday. The Italy-Germany spread decreased to 141 basis points. The French 3,26-year OAT yields 61% and the Bund/OAT spread has fallen to 1,081 basis points. The euro is appreciating, at 83,7 dollars. Oil: WTI at 87 dollars a barrel, Brent at 2.362 dollars. Gold at $XNUMX an ounce. Bitcoin in sharp decline at $54.000, the lowest since February, despite the stock market records. Some link the decline to the race for the White House: if Joe Biden were to give up, his replacement could reopen the game with Donald Trump, considered far more favorable to cryptocurrencies than the Democrats.
Germany. The industrial production it fell by 2,5% cyclically in May and by 6,7% on a yearly basis (adjusted index), well below economists' expectations. Manufacturing production fell by 2,9% month on month, construction production by 3,3%.
Leonardo remains in focus after the rise achieved in the previous two sessions.
Fincantieri. Today is the last day of listing of the rights relating to the capital increase.
Ps. The repurchase of the two insurance joint ventures from Axa it could cost MPS around 700 million. The number can be seen from a report by Deutsche Bank which values 1,38% of the two companies in which the French company currently holds half the capital at 100 billion. In particular, this is the so-called estimated appraisal value, i.e. the sum of the adjusted net accounting equity, the portfolio of policies already acquired and the goodwill connected to the commercial and profitability prospects of the two jvs.
Terna has signed an ESG-linked Credit Facility Agreement with Unicredit for a total amount of 200 million euros.
Iveco Group announced that it had signed a Schuldschein loan (private placement regulated by German law) for an amount of 290 million euros in two tranches of three and five years, at a variable interest rate. The proceeds will be used to support the company's financial needs, replacing existing bank lines.
New entrance to Piazza Affari. Goddess, a company active in the distribution of electricity and management of public lighting in the regions of Marche, Abruzzo and Liguria, will begin trading on the stock exchange today with ISIN code IT0005600249. 994.000 ordinary shares were placed, resulting from the capital increase at a price of 8 euros per share. The total value of the collection is equal to 7,9 million euros. The initial capitalization of the company is approximately 62,84 million euros. DEA's capital is made up of 7.854.939 shares, of which 2.965.873 ordinary shares admitted to trading and 4.889.066 multiple voting shares not admitted to trading, the latter held by the shareholders Astea, ASP and Odoardo Zecca.
I banking sector stocks remain in the spotlight. The Financial Equity and Global Equity team at Algebris Investments believes the investment case for the broader European banking sector remains attractive, given continued earnings improvements, annual dividend returns, double-digit buybacks and valuations with a significant discount compared to the long-term average.
Today's data: May industrial production for Germany, France and Spain. In Italy, Istat releases data on retail trade in May. In the Eurozone, Retail Sales May. The speech by the president of the New York Fed, John Williams, is on the agenda at 11:40. First at 9am that of Joachim Nagel, president of the Bundesbank and member of the governing council of the European Central Bank. Followed at 14pm by another member of the ECB, Frank Elderson, to close at 15pm with the speech of the president, Christine Lagarde.
