Markets face one of the busiest weeks of the year in a climate of détente due to the signals of rapprochement between the United States and China in trade that they are taking to one side gains on copper, oil and stocks, on the other a drop of government bonds and gold, while demand for traditional safe-haven assets has declined.
This week investors will have to face the data quarterly reports of 5 of the “Magnificent Seven” of US artificial intelligence, the Fed meeting The key meeting between Trump and Xi Jinping on Thursday is expected to ratify the weekend's agreements ahead of the November 1 tariff deadline. Central bank meetings in Japan, Canada, and Europe are also on the agenda this week.
China and the US are getting closer in trade. Even Beijing seems to believe it.
Also the China seems to believe in the possibility of a trade agreement between Washington and Beijing. This morning the mouthpiece official Chinese Communist Party He called on the world's major economies to "jointly safeguard the hard-won gains" in their latest trade talks, ahead of a high-stakes meeting between Donald Trump and Xi Jinping.
Trade negotiators from China and the United States announced on Sunday that they had reached a set of chords on issues ranging from tariffs, shipping costs, fentanyl, and export controls. In a conciliatory tone, the People's Daily He said this morning that the progress showed that Beijing and Washington are capable of managing their differences.
It is expected that Xi and Trump they will sign the terms Thursday in South Korea, when they will meet in person for the first time since the US president returned to power. The meeting could reveal details on issues such as purchases of soybean US by China, Washington's plans for shipping tariffs on Chinese ships and export controls of Rare lands From Beijing's perspective, reduced external uncertainty will give policymakers the opportunity to focus on supporting the domestic economy and improving its technological reliability. Last month, Chinese industrial companies saw their profits rise to their highest level in nearly two years, while the labor market remains weak and a years-long slump in the real estate market persists.
Wall Street heads for rate cuts and earnings calls for five of the "Magnificent Seven."
All three major U.S. stock indexes closed at all-time highs on Friday, already setting the stage for this week's quarterly data and an expected interest rate cut by the Federal Reserve. The S&P 500 and Nasdaq posted their biggest weekly percentage gains since August, closing at +0,79% and +1,15%, respectively, while the blue-chip Dow closed at +1,01%, surpassing the 47.000 mark for the first time ever. And this morning, the US index futures indicate a good rise.
The ones that gave a substantial boost were the inflation data lower than expected on Friday which strengthened the expectation of a rate cut another quarter of a percentage point by the Fed Wednesday, compared to the current benchmark rate of 4%-4,25%, allaying fears of a negative impact on inflation from Trump's tariffs.
La quarterly season It's now in full swing: 143 companies in the S&P 500 index have reported results, according to LSEG data. Analysts now expect a growth S&P 500 Index Earnings Aggregate of 10,4% on an annual basis in the third quarter. This represents a marked improvement over the 8,8% annual growth forecast on October 1, according to LSEG. Eighty-seven percent of companies exceeded earnings expectations and 83% exceeded revenue expectations, justifying this year's recovery and likely paving the way for a strong rally at the end of the year as well, analysts say, despite last week's disappointments from companies like streaming. Netflix and the chip maker Texas Instruments.
But this week will be the busiest of the season, with over 170 companies expected to present their data. Among them, Microsoft, Apple, Alphabet, Amazon and Meta, five of the “Magnificent Seven,” the group of companies with enormous market capitalizations, whose shares dominate stock indexes and which have collectively seen disproportionate earnings growth over the past two years. Their profit margin compared to the rest of the index it is decreasing, but it is still expected that the Magnificent Seven will record rising results: according to LSEG data, the group's profits are expected to increase by 16,6%, versus 8,1% for the rest of the index.
Other companies reporting results this week include pharmaceutical company Eli Lilly, the oil companies Exxon and Chevron and payment companies Visa and Mastercard.
Asian stocks soar on hopes of a U.S.-China deal Thursday. Gold falls.
Le Asian stocks they went up, while gold and bonds fell, on signs of easing trade tensions between China and the United States which fueled risk appetite and a move away from safe havens. Stock markets soared with the Kospi of South Korea, the actions of Taiwan and Nikkei Japanese stocks rose more than 2% each and surpassed all-time highs. Chinese blue chips added 0,84%, while theHang Seng of Hong Kong MSCI's broader index of Asia-Pacific stocks rose 0,78%. The stock market rose 1,3%, hitting a record high. Worth noting Toyota, with record sales +4,7% despite tariffs, driven by hybrid models in China and the USA
The gold, considered a safe haven, lost 1% to $4.096 an ounce, while US Treasury securities fell, leaving the yield on the benchmark 10-year bond up 3,8 basis points. raw materials, including soybeans, wheat and corn, have increased on the prospect of a trade deal.
Il dollar rose slightly to 151,13 yen, near its two-week high.'EUR It is at $1,16215. The dollar index remained unchanged at 98,982.
European stock markets opened higher. At the Milan Stock Exchange, eyes are on Terna, Risiko, and Webuild.
European stock markets are expected to open higher: Eurostoxx 50 futures up 0,55%.
Terna. Bloomberg Terna has discussed selling a minority stake in the Italian electricity grid, valued at €25 billion, to finance new projects and reduce debt. Terna said it "does not wish to comment on rumors or speculation: the company constantly analyzes the financial instruments available for the development and maintenance of the national transmission grid, the results of which are reflected in the decisions defined in the industrial plan," a spokesperson told Reuters. Second Milano Finanza The company is reportedly exploring foreign funds, both American entities and investors from the Far East, where some Terna managers were traveling a few weeks ago. In March, the state-controlled utility announced a plan worth over €23 billion to invest in the electricity grid over the next ten years, aimed at supporting the energy transition.
UnicreditEuropean Financial Services Commissioner Maria Luís Albuquerque has lamented obstacles to the creation of larger European banks posed by the German government's resistance to UniCredit's attempts to acquire Commerzbank.
B for Bank. In an interview a The Corriere della Sera On Sunday, CEO Gianni Franco Papa stated, regarding market rumors of a defensive move against UniCredit, that the derivative on 9,99% of the capital is a strong signal of confidence in the group's prospects.
Mount Paschi. Delfin and Caltagirone, the two main shareholders with 17,5% and 10,2% of MPS, respectively, are already discussing the April renewal of the board of directors. Apparently, Delfin and the Treasury, which still holds a 4,8% stake in Monte dei Paschi, would like to confirm Luigi Lovaglio as CEO, while Caltagirone is leaning toward a discontinuation.
stmMorgan Stanley cut its target price from 26 to 20 euros (equal weight rating).
Eni Barclays intervened by raising the target price from 17,5 to 18,5 euros (overweight rating).
MayorBarclays has adjusted its target price from 13,5 to 14,5 euros (underweight rating).
WebuildPietro Ciucci, CEO of the Stretto di Messina company, expressed confidence in a positive outcome of the Court of Auditors' review of the project, which took place at its meeting on October 29.
Classic Ferrari for sale has entered the cryptocurrency markets and the world of young tech enthusiasts with a new digital token that its wealthiest fans will be able to use in an auction to win a Ferrari 499P, the endurance car that won three consecutive Le Mans titles.
Stellantis, CEO Filosa begins brand review in Europe: future DS 3 and DS 4 models canceled. The U.S. National Highway Traffic Safety Administration announced the launch of an investigation into approximately 232.209 Chrysler 2020 Jeep Gladiator and Wrangler vehicles sold in the United States, due to concerns that a malfunction in the instrument cluster could cause the loss of vehicle information.
