Caution has prevailed again over European stock exchanges mid-session, awaiting the release of US inflation data and any developments in the Middle East conflict. The crisis was also addressed by the China, which expressed "deep concern" over last night's cross-exchange attacks between Iran and the United States, urging the parties involved to "stop the escalation." The ECB is also scheduled for Thursday, and could raise rates by a quarter of a point.
At the opening, however, the European stock markets had started on the rise despite the strong falls in the Asian stock markets and the return of chip sales which yesterday knocked out the NasdaqAttacks in the Middle East, tech, and US inflation: these remain the three drivers driving European stock markets. And in Milan, a fourth is added: the banking game.
All eyes, therefore, on Iran. The US military launched several attacks during the night after a US Army helicopter crashed near the Strait of Hormuz. According to President Donald Trump, the aircraft was shot down by Iran, which in turn responded with attacks on US targets in Jordan, Kuwait, and Bahrain. This return to arms appears to be pushing back an agreement between the parties that until yesterday was considered "imminent."
In Milan, MPS and Mediobanca are slowing down.
At Piazza Affari, Ps e Mediobanca have slowed down, returning to the levels of the previous closing. However, the shares of Bpm bank (+3,2%), fuelled by the numerous rumours about the future of the institute after the offer presented in recent days for MPS, which was overshadowed by the takeover bid launched by Intesa Sanpaolo (-1%) with the support of Unipol (+1%). In the banking sector Unicredit advances by 0,11% with the market wondering about the evolution of the situation in Germany, taking into account that in the meantime the take-up Commerzbank rose to around 54%, including through derivative instruments. Among the Ftse Mib stocks, the following stands out: stmicroelectronics, which recorded the best performance of the index with a rise of 2,2%, supported by the promotion to “Buy” by Bank of America.
US futures fall again after yesterday's tech sell-off
Futures continue to decline in the US after the massive sell-off that hit technology stocks on Tuesday. Yesterday, the Dow Joness gained 0,17%, the S & P 500 lost 0,26%, the Nasdaq closed down 0,97%, weighed down by chip sales. micron Technology lost 2,9%, after a 10% rally on Monday; its shares fell about 20% in two days last week. Broadcom, which had suffered a similarly steep decline in two days last week, dropped 1,2%. Advanced Micro Devices (Amd) lost 3% instead, while Marvell Technology has fallen more than 1%. According to Jay Hatfield, CEO of Infrastructure Capital Advisors, "everyone is a little nervous" ahead of theSpaceX IPO, scheduled for Friday, June 12.
Among other tech stocks, it is also worth mentioning the collapse of Apple (-3,4%) occurred the day after the presentation of a new artificial intelligence software. The title of DraftKings, a sports betting company, jumped 11% after a sharp increase in trading volumes on its platform. Shares of the U.S. pharmaceutical company Newlywed rose more than 39% after British biopharmaceutical giant GSK announced a deal to acquire the company for $10,6 billion.
The May reading of the stock market could also have an impact on today's performance on Wall Street.consumer price index In the United States, economists expect the index to rise to 4,2% and the core figure to rise to 2,9%. This figure comes after the payrolls data, which was better than expected in May, and could strengthen bets on a Fed rate hike by the end of the year. Currently, 68% of analysts expect a rate hike by December.
Perfect storm in Asia
The sell-off that started yesterday in New York continued this morning in Asia. The ones that paid the price were mainly the Kospi of Seoul which, after yesterday's +8%, closed today's session with a 4,5% drop weighed down by sales on Samsung (-6%) And Sk Hynix (-7,5%). Also heavy is the Tokyo Nikkei (-1,9%) after the publication of the producer price index, which rose 6,3% in May compared to the previous year. This is the fastest growth rate in the last three years. The rain of sales at the investment giant also weighed on the price list. Softbank Group, which is heavily focused on artificial intelligence, lost 8,3%. Bucking the trend was the chipmaker Tokyo electron (+3,9%). Down also theHang Seng of Hong Kong (-0,8%), while the Shanghai Composite marks -0,4% and the Shenzhen -1,97%: In China, producer prices rose by 3,9% in May, reaching a four-year high compared to the previous year.
Oil prices remain low, as Bitcoin falls.
Il Petroleum is little moved: North Sea Brent is stable at 90,96 dollars a barrel (-0,5%), while WTI loses a fractional 0,2% to 88 dollars. It is stable gas price, which in Amsterdam is worth 48,73 euros per megawatt hour. On the currency market, theeuro is still at 1,551 dollars (yesterday it closed at 1,1550 dollars). It is also worth 185,34 yen (yesterday it closed at 185,13), while the dollar/yen exchange rate stands at 160,46 (160,29). Finally, the Bitcoin falls 1,2% to $61.284.
