Fears related to the AI sector have kept market sentiment fragile, and trading very volatile, including Samsung and Microsoft profits which helped to calm the spirits, and the strong Meta's cash flow decline which highlighted the difficulty these companies encounter in generating profits in the face of huge investments. Fed message yesterday, at the conclusion of his FOMC monetary policy meeting, uncertain outcome about the trajectory of rates, has pushed up the government bond yieldsToday's agenda includes the monetary policy decision of the Bank of England and, after the closing of the US markets, the accounts of the giants Apple Inc. and Amazon.
Il Brent It's above $92 a barrel, while there's no concrete sign of peace negotiations in the Middle East. Yesterday, the U.S. military completed its latest wave of strikes against Iran, lasting two hours, hitting dozens of targets. Washington called the strikes a "strong response" to the Iranian missiles launched against U.S. forces in the Middle East the previous day.
Uncertainty about the path of Fed rates causes government bond yields to rise and the curve to steepen
An Federal Reserve split and a confusing message from the president Kevin Warsh on the direction of the interest rates The bond market was perplexed. The Fed did not change its policy, as expected, but three members of the Fed's FOMC disagreed. Chairman Kevin Warsh promised to contain inflation but offered no indication of the measures the central bank might take, merely noting that Treasury yields had risen significantly since the last Fed meeting, reflecting market expectations of higher interest rates. He welcomed this rise in yields while emphasizing that this did not oblige the Fed to validate these expectations with monetary policy interventions.
This confusion led to a general sell-off in government bonds, causing yields to jump and the yield curve to steepen. 30-year US Treasury rose three basis points today to 5,23%, its highest level in nearly two decades, extending an 11 basis point jump in New York after the Fed's decision. Yields on 30-year Treasuries also rose Australia, New Zealand e Japan they were put under pressure
Fed interest rate futures now imply a probability of about 60% that the Fed raise rates at its next meeting September and expect a monetary policy tightening of 33 basis points by the end of the year.
Wall Street closed lower yesterday. In after-hours trading, Microsoft jumped 9%, while Meta fell 7,45% after the data.
IERI (Yesterday) Wall Street closed sharply lower, with rather high exchanges with investors concerned about the outlook for Fed rates and technology stocks. S & P 500 at -1,52%, Nasdaq at -1,74%, Dow The benchmark S&P 500 index hit its lowest level in a month, while the tech-heavy Nasdaq Composite index is down about 9% from its all-time high in June.
The widely anticipated decision of the Fed leaving the benchmark interest rate in the range of 3,50%-3,75% did not find consensus yesterday and three of the twelve members of the Federal Open Market Committee, the Fed's decision-making body, who would have "preferred" an increase of a quarter of a percentage point at this meeting to combat the'inflation, which remains beyond above target of the 2% set by the Fed.
The financial results of large-cap companies Meta and Microsoft after the close of official trading highlighted the sharply contrasting fortunes of the two companies engaged in the race to build infrastructure for artificial intelligence. ecosystem reassured investors that it will continue to generate cash through fiscal 2027 despite heavy spending, sending its shares soaring. in the after hours by 9%, while Meta's title is collapsed by 7,45% after a 91% decline in free cash flow in the second quarter and after the social media company said it now expects capital expenditures for 2026 to be between $130 billion and $145 billion, up from its previous forecast of $125 billion to $145 billion.
Operators are waiting the results today di Apple e Amazon.com which will be announced after the market closes.
Asia is volatile, with Tokyo's Nikkei rising and the Kospi swerving. Samsung's earnings soar.
Asian stock markets showed a high volatility in a session characterized by ups and downs, with the index Kospi South Korean who has swung between gains of up to 5,5% and losses of up to 2,1%, heading towards the close at -0,8%.
The market took comfort in chipmaker data Samsung Electronics, which said its operating profit jumped 19-fold to a record high in the second quarter. The unit reported operating profit of 89.200 trillion won ($62 billion) in the June quarter. This compares with analysts' average estimate of 79.300 trillion won. The group's net profit came in at 71.300 trillion won, also exceeding estimates. Samsung shares rose as much as 4,1% before falling 1,9% and stabilizing at par at the close.
Asian chipmakers have been in the spotlight this week after a sharp drop in South Korean stocks wiped out more than $2 trillion market cap market and heightened investor anxiety about the returns on their massive investments in artificial intelligence. Over the last two trading sessions, the Kospi has fallen 16%.
La South Korea has committed to take measures to stabilize the market and restrict access to leveraged ETFsThe measures were announced in a press release issued yesterday, following an emergency meeting chaired by Finance Minister Koo Yun Cheol with all the country's major financial authorities. "The participants agreed that the concentration of trading in leveraged products on individual stocks has contributed to increased market volatility and committed to respond quickly and decisively," the Ministry of Finance said in a statement. The government plans to limit retail investor participation in leveraged ETFs, including by capping exposure to a predetermined portion of investors' overall portfolios and increasing trading costs, the Ministry added, without providing specific details.
In Japan, the Nikkei index in Tokyo is up 0,5% ahead of tomorrow's Bank of Japan monetary policy meeting, which is also expected to keep rates unchanged. In China, the CSI 300 index of the Shanghai and Shenzhen stock markets is down 2%, the Hang Seng index is down 0,5%, and the Taipei Taiex index is down 0,5%.
European stock markets started slowly. At the Milan Stock Exchange, we're keeping an eye on Webuild, Campari, and Prysmian.
European futures announce a slow start to the stock markets
Campari – It raised its 2026 operating margin forecast. The first half closed with adjusted operating profit up 8,5% on an organic basis to €358 million, better than expected. Revenue amounted to €869 million, up 2,5%. Barclays, BNP Paribas, and Morgan Stanley raised their target prices.
Classic Ferrari for sale – According to the Financial Times In two months, it reached its 2026 sales target for its new Luce electric car.
Fincantieri – The company closed the first half of 2026 with a record net profit of €102 million, compared to €35 million in the same period of the previous year. The 2026 guidance was confirmed.
Fineco – It closed the first half of the year with a net profit from continuing operations of €343,3 million, an 8% increase year-over-year. Total revenue reached €713,8 million, an increase of 10%.
Hera – It is focusing on M&A, aiming to close a deal in Italy in the multi-utility, networks, energy supply, and environmental sectors. Executive Chairman Cristian Fabbri said this in an interview with Reuters.
Intesa Sanpaolo – It closed the second quarter with a net profit of €5,6 billion, up 6,5% year-over-year, above expectations. The bank also raised its net profit forecast for 2026, now expected to exceed €10 billion.
Monte dei Paschi di Siena Chairman Cesare Bisoni responded to a letter from several minority directors, emphasizing that there were no irregularities in the activities of the Board of Directors and top management. The bank announced this in a statement.
Prysmian – It closed its best quarter ever: adjusted EBITDA reached €730 million. Revenue increased by 9,4%. The company raised its guidance.
Snam – The company closed the first half of the year with an adjusted net profit of €733 million, up 2,8% excluding one-off items. Financial targets for 2026 were confirmed. Net debt guidance was improved.
Tim – The Group closed the first half of the year with total revenues up 2% year-over-year to €6,8 billion and EBITDA after leases up 1,2% to €1,8 billion. This performance was supported by a sharp acceleration in profitability in the second quarter, with EBITDA and EBITDA after leases growing and a return to profitability.
Brembo Mediobanca has raised its 2026 forecast. Revenue growth is now expected to be around 5% at constant exchange rates, up from the previous target of 3%. Second-quarter results exceeded expectations. Mediobanca raised its target price to €13,60, from €12 previously.
Pirelli – Confirmed its 2026 targets. Net profit grew 13,3% in the first half of the year to €299 million. JPMorgan lowered its rating from Overweight to Neutral, with a target of €7,20.
Webuild, Trevi – Webuild has launched a takeover bid for Trevi with a cash offer of €4,50 per share, representing a 29,8% premium over the closing price on June 26.
