Let there be actions that government bonds are still on sale this morning, following Friday's plunge, with investors worried about the entanglement of at least three reasons: the doubt that the AI rally was excessive and too rapid, the resumption of fighting in the Middle East and the rise in oil prices are pushing central banks to raise interest rates to counter the rise in inflation. asian bags they collapse but Nvidia mitigates the declines with theannouncement of partnership with South Korean companies. For Wall Street one opens crucial week waiting for the mega SpaceX IPO, but also economic data that will point the way for Fed rates and other important quarterly reports. European stock exchanges are seen opening in decline, while at Piazza Affari the recovery is rekindled bank risk.
Renewed tensions in the Middle East are pushing oil prices higher. OPEC+ raises production targets.
Israel said it struck several military targets in Iran in response to Tehran's missile attacks, despite Trump's call for Prime Minister Benjamin Netanyahu to refrain from retaliating. The exchange of fire represents one of the most serious tests of the ceasefire that went into effect on April 8 to halt the fighting between the United States, Israel, and Iran. It comes at a time when the United States and Iran appear to be making little progress toward a tentative agreement to end the war, despite Trump's repeated claims that a deal is close. Brent crude rose 3,5%, surpassing $96 a barrel. WTI crude rose 3%. Yesterday, OPEC+ agreed to raise its production target by 188.000 barrels per day.
Asia declines, but Nvidia mitigates losses by announcing several partnerships with South Korean tech firms
This morning in Asia, the MSCI stock index fell 2,8%. In South Korea, the Seoul Stock Exchange's Kospi index fell 4,7%, recovering from the 8% drop seen during the session. Attention is focused on the moves of Nvidia which he announced various partnerships with major South Korean technology companies, aiming to secure memory chip supplies and expand their artificial intelligence business. The agreements were announced during a visit to South Korea by Nvidia's CEO. Jensen Huang, which began on Friday. The agreements involve SK Hynix, SK Telecom, Naver and Doosan GroupFinancial terms of the partnerships were not disclosed. SK Group, the country's second-largest conglomerate, confirmed that its SK Hynix and SK Telecom divisions have reached agreements with Nvidia, adding that they have signed a multi-year technology partnership to develop advanced memory chips for global AI data centers. The agreement will help keep its offerings in step with Nvidia's expansion into robotics, personal computers, and AI supercomputers. SK Hynix which was losing 10% has reduced the decline to about 4%. Samsung Electronics which lost up to 11% loses 8% and Taiwan Semiconductor Manufacturing after a -5,7% it loses 3%.
In Japan the index Nikkei Tokyo's stocks are down 3,7%. Tech companies are falling the most: Softbank -7%. The economy of Japan GDP grew 1,8% year-on-year in the three months to March 31, according to government data. This is lower than the preliminary reading of 2,1% but higher than estimates of 1,4%. Capital spending was the main drag on growth, down 0,7% quarter-on-quarter: growing economic uncertainty, especially related to the war in the Middle East, prompted companies to largely reduce their most significant investments.
In China, Hong Kong's Hang Seng Index is down 1%, while the CSI 300 index in Shanghai and Shenzhen is down 1%. In India, Mumbai's BSE Sensex is down 1%.
On the bond market, the US government bonds They extended their declines due to expectations of a Fed rate hike and inflation fears stemming from rising oil prices, with the 10-year yield rising four basis points to 4,57%. The yield on 10-year Japanese government bonds also rose. Indonesian bonds extended their losses, with the 10-year yield rising more than 30 basis points, exacerbating the slide in the country's assets.
Il dollar, which has returned to being the preferred safe haven since the beginning of the conflict in the Middle East, has gained ground against most G10 currencies. yen weakens and crosses the 160 threshold against the dollar. The cross is 160,3.
Meanwhile, the Bitcoin rose 2% to around $63.000, after falling below the $60.000 mark on Friday for the first time since Donald Trump won reelection in 2024. The cryptocurrency has lost about half its value since peaking at over $126.000 in October last year.
Wall Street awaits SpaceX's IPO this week, along with important economic and quarterly data, after Friday's crash.
Wall Street's historic weekly rally was halted on Friday by intensifying sales on technology stocks, while solid employment data have fueled fears of a restrictive monetary policyThe Nasdaq 100 index fell 4,8%, while growing concerns about valuations pushed the S&P 500 down 2,6%. The semiconductor index lost 10%.
But investors' attention is shifting to this week which will be crucial for Wall Street as the much-anticipated and massive initial public offering of SpaceX, economic data crucial and some important quarterly. SpaceXElon Musk's company, Tesla, aims to raise $75 billion, the highest ever raised for an initial public offering, in a deal that would value it at $1.750 trillion. The pricing is scheduled for June 11, with trading on the Nasdaq beginning the following day. The company has an unusual and diverse set of businesses, including rockets, satellite communications, and AI computing, and a valuation is considered difficult to pin down. The company reported a net loss of $4,94 billion for 2025, even as revenue rose 33% to $18,67 billion.
The index of the consumer prices May, coming out Wednesday, will show how the surge in oil and gasoline prices is affecting inflation. One concern is the extent to which rising energy prices could impact other components of the consumer price index. Other economic data due out this week include producer prices, which will be published Thursday. Also, quarterly reports from tech companies are coming soon. Oracle infrastructures e Adobe.
Swaps on interest rates Markets are expecting a quarter-point hike from the Fed by its December meeting, with a roughly 60% chance of an October move. Higher U.S. interest rates tend to drain capital from emerging markets, strengthen the dollar, and raise financing costs, creating a more challenging environment for equity markets. Attention is shifting to the Fed's upcoming monetary policy committee meeting. Fed, to be held on 16 and 17 June under the leadership of new president Kevin Warsh.
It should be noted that, as reported by the Financial Times, OpenAI is preparing for a major overhaul of its platform ahead of its highly anticipated IPO later this year, to better compete with rivals like Anthropic.
This morning, Nasdaq 100 futures recovered their early losses and are now up 0,6%. Contracts on the S&P 500 index also erased their opening losses, gaining 0,2%.
European stock markets opened lower. At the Milan Stock Exchange, eyes were on BMPS, BPM, BPER, and Intesa Sanpaolo.
European stock markets are expected to open lower: Euro Stoxx 50 futures down 1,5%.
FranceA consortium of French telecommunications companies has reached an agreement to acquire SFR, owned by billionaire Patrick Drahi, in a deal that values the country's second-largest mobile operator at €20,4 billion ($23,5 billion), including debt.
banks. The Italian banking risk It flared up again within hours. After Banco BPM's friendly proposal to Monte dei Paschi for a merger at equals, Intesa Sanpaolo completely changed the situation and launched a voluntary public tender offer for all of MPS. This heavy-handed move, approved by the board of directors last night and announced to the market this morning, directly brings Italy's leading bank into the battle for control of the Siena-based bank and, indirectly, the MPS-Mediobanca-Generali combination.
Fincantieri – It is developing nuclear-powered merchant ships, CEO Pierroberto Folgiero told Corriere della Sera. The group aims to conduct the first sea trials in early 2030 and is collaborating with partners such as Ansaldo and Newcleo.
Mediobanca – Equita raised its rating to Buy from Hold, with a target price of €28,9, up from €25,7.
Telecom Italy – It has signed a new agreement with DAZN ahead of the 2026 FIFA World Cup, expanding access to tournament content for the telecommunications operator's customers. Morningstar has lowered its rating from Hold to Sell, with a confirmed target price of €0,57.
Unicredit – Demand for Commerzbank's public offering has risen to 7,85%, according to an update released by the German bank.
Juventus – The preliminary investigations judge of the Rome Court has ordered the dismissal of the proceedings relating to the financial statements as of June 30, 2022, which concerned individual company officials and not the company as a whole.
