Wall Street closed little changed and without a clear direction for the indices, while it was waiting for the televised debate between the two candidates for the presidency of the United States. Today the main attention is on the data on US inflation which should give more precise indications to the Fed on the size of its rate cut next week and US futures are under pressure. Even the asian bags, which tend to be weak, are contrasted. European stock exchanges, awaiting the ECB's decision tomorrow, are preparing for a weak opening. To watch Unicredit and Telecom Italia.
Wall Street without a clear direction. Inflation data expected today
Il first debate between the two candidates for the American presidency Kamala Harris took the initiative and attacked Donald Trump from the first moments of the highly anticipated televised duel. The presidential candidates clashed on abortion, the economy, immigration and Trump's legal problems, leaving investors nervous. The stock markets betting have moved in favor of Harris after the event. Pop star Taylor Swift, has announced that she is siding with the Democrats, attacking Trump and Vance. A position that shifts votes among young people, women and the LGBTQ+ world.
Investors are now shifting their attention to US inflation data today which could influence the political moves of the Fed next weekThe consumer price index (CPI) is forecast to rise 0,2% month-on-month in August, unchanged from the previous month, according to a Reuters poll. Although the Fed is expected to cut interest rates next week, thesize of the cut is still a matter of debate, especially after a mixed jobs report released on Friday failed to clarify the direction the central bank might take. In the meantime, the US futures are under pressure: -0,45% on the Dow Jones and -0,53% on the S&P500.
The S&P500 closed up 0,5% and the Nasdaq 0,8%, the Dow Jones was weighed down by banks and oil companies, -0,2%. Federal Reserve has revised his proposal for the increase of capital requirements of large banks Americans, after the reactions of the financial sector, and now proposes a 9% increase in reserves compared to the 20% initially hypothesized. The initiative was announced by Vice President Michael Barr. According to the big Wall Street banks, the previous proposal would have damaged the economy and weakened American banks compared to foreign ones. The meeting closed on parity.US technology stock index, which proposes a +0,7% at the end and closes the trading at 18.790,82 points.
Asia Pacific stocks mostly in red
Tokyo's Nikkei index fell 1,3% and the yen strengthened further after further confirmation of the path of interest rates in Japan. The cross hit its lowest level since January at 141,4 from 142,4 at the previous close. Speaking to a group of businessmen in Akita Prefecture, in the north of the country, Central Bank Board member Junko Nakagawa said that if the economy continues to strengthen as expected, the adjustment of the monetary policy will continue. “I think the degree of monetary easing will be adjusted if the outlook for Japan’s economy and inflation comes to fruition.” The central bank will almost certainly keep interest rates on hold at next week’s meeting because it fears a late-July earthquake, but Nakagawa’s comments were a reminder that the medium- to long-term program calls for monetary tightening. This week’s macroeconomic data confirmed that the economy rebounded on the back of rising domestic demand in the second quarter, so the path is clear to move forward with interest rate hikes.
La Hong Kong bag is down 1,4%. CSI 300 of the Shanghai and Shenzhen stock exchanges -0,4%. TAIEX of Taipei at par. The MSCI index Asia-Pacific's broadest share outside Japan fell 0,3%, S&P 500 futures fell 0,5%, while the dollar remained on the defensive, with the yen up more than 1% to an eight-month high. China European business confidence is at an all-time low, according to the annual European Business in China Position Paper published by the European Chamber of Commerce in China.
European stocks: Unicredit buys 4,49% of Commerzbank
European stock markets were set for a weak open, with Eurostoxx 50 futures down 0,21%, German DAX futures flat and FTSE futures down 0,17%.
UniCredit buys 9% of Commerzbank in a double deal: it takes over 4,49% from the German government and the rest on the market, thus becoming the second largest shareholder of the German bank. It paid 13,20 euros per share to the German government (higher than the daily closing price of 12,60 euros per share). The stake was sold, through an "accelerated placement procedure", for approximately 702 million euros, the country's financial agency explained in a press release. The offer was significantly higher than all the others. This is the first step in the withdrawal from the capital of the second German bank, after the intervention to save it from bankruptcy during the financial crisis of 2008-2009.
Telecom Italy (Tim) has submitted a non-binding offer for the remainder of the assets of BT in Italy, Reuters reports, explaining that in its proposal Tim aims to obtain around 100 million euros from the seller to acquire the assets. BT has scaled back its activities in Italy in recent years after a scandal over accounting irregularities in the 2015 and 2016 financial statements that in 2017 led the group to cut its revenue and profit estimates by a hole of 530 million pounds.
Eni informs that construction work on the Livorno biorefinery will soon begin after the group has obtained almost all the necessary authorizations. The green light has in fact arrived from the Ministry of the Environment and Energy Security in agreement with the Ministry of Culture, having acquired the opinions of the Istituto Superiore di Sanità and the Tuscany Region, for which the Environmental Impact Assessment (EIA) request had been submitted in November 2022.
the new 30-year benchmark Btp Treasury was issued for 8 billion at a rate of 4,359 percent with record orders: over 130 billion euros. This is what the Ministry of Economy said in a note in which it recalls having chosen the placement syndicate method for the BTp 1/10/2054 and an annual rate of 4,3%, paid in two semi-annual coupons.
Bpm bank has decided to exercise the right to redeem the Tier 2 subordinated bond issued on October 1, 2019 with a 10-year maturity (October 2029) and early redeemable in October of this year. The bond, placed with institutional investors, will be called at par on October 1, 2024 and the interests accrued up to that date will be recognized.
Il Banco Santander said it plans to raise PLN 2,46 billion from an accelerated placement of 5.320.000 ordinary shares in its subsidiary Santander Bank Polska at PLN 463 each.
The Spanish banking group said the shares offered represent 5,2% of the Polish unit's share capital. After the share sale, Banco Santander will retain a majority stake of 62,2% in the unit.
