The euphoria generated by the commercial thaw seems to have already run out, giving way to the desire for you realize on the one hand, on the other hand to other objectives to be put under the magnifying glass, are not exactly positive for the markets: the concerns for the US debt, the probable missed meeting today between Putin and Zelensky, the slip of the dollar. Investors also realized that there remains a lot of uncertainty about Global economic outlook and on the chaotic Trump's trade policies. The asian bags are falling, with only tech holding up. Oil down -2% after progress in nuclear negotiations between the United States and Iran. Gold has lost $200 in four sessions and European stock markets are seen opening weak. At Piazza Affari, eyes on Unicredit, Webuild, Eni.
Trump's 'Big Beautiful Bill' Weighs on US Treasuries
I US Treasury yields rose and the benchmark 10-year yield rose to a one-month high, partly due to concerns related to budget package President Donald Trump’s plan, which would add trillions of dollars to U.S. debt. Treasury selloffs hit across the curve yesterday, dampening bets that the Federal Reserve will cut rates.
Republicans in the US Congress yesterday advanced important elements of the budget package, with key committees approving tax cuts which would translate into more debt, cuts in health care spending for the poor and disabled, reductions in social safety nets. The “Big Beautiful Bill” Trump's debt forecast calls for $4 trillion more than the current level of $36,2 trillion, or 127% of GDP.
Furthermore, the United States is ready to scale back banking rules taxes following the 2008 crisis
Regulators are preparing to cut capital requirements that have come under heavy criticism from Wall Street.
Dollar Down, Eyes on Korean Won Deal
On the currency markets, the dollar continued to show weakness against most Group of 10 currencies, erasing yesterday's recovery. yen strengthened to around 146 per dollar (+0,44%). The dollar Australian strengthened on better-than-expected employment data. Note that the dollar remained volatile against the korean won, slipping for a second straight day following news that South Korea's vice finance minister discussed foreign exchange with a U.S. Treasury official earlier this month. The won's moves were reminiscent of the unprecedented surge in the Taiwan dollar a few days ago, again fueling speculation that a weaker dollar could be part of the trade agreement Trump with other countries. South Korea's Vice Finance Minister Choi Ji-young and Robert Kaproth, who currently serves as the U.S. Treasury assistant secretary for international finance, discussed currency policies at a meeting on May 5 in Milan, Bloomberg reports: it is not clear why the summit was held in Italy. A spokesman for South Korea's Finance Ministry confirmed the meeting.
Wall Street Awaits Walmart and Powell Today
Yesterday's modest gain in U.S. stocks covered a day of broad-based declines across most sectors. The day's cues were expected to include U.S. retail sales, Walmart's earnings and a speech from the Fed chairman.
Big tech companies were the main exception, along with a mix of individual stocks. The S & P 500 rose 0,1% overnight, while the Nasdaq 100 gained 0,5%, supported by a rise in Nvidia Corp which wrote off the chipmaker's 2025 losses. Boeing co. rallied on its biggest deal ever, after Qatar Airways ordered a long-range jet during Donald Trump's visit to Doha. Starbucks Corp. has reached out to private equity firms, technology companies and others to explore options for its China business, including a possible stake sale, according to Bloomberg.
The results of will be fundamental for the markets Walmart an important indicator for the U.S. retail sector, to see whether the Arkansas giant is truly best positioned to handle the uncertainty of Trump’s tariffs. Walmart is among the few major companies that have neither withdrawn nor lowered their forecasts. Last month, the company reiterated its full-year outlook, saying that “nothing in the current environment changes its strategy.”
Also on the agenda today are U.S. retail sales data for April, which are expected to be flat on a monthly basis and will offer clues about the health of U.S. consumers, and upbeat numbers could reduce the chances of a recession in the world’s largest economy, which would in turn be a boon for stocks.
The speech by the chairman of the Federal Reserve is also in the market's sights, Jerome Powell where attention will be focused on any clues he provides about the outlook for U.S. monetary policy. So far, hard data has given Fed policymakers little to go on as they try to gauge the impact of Trump’s tariffs and ongoing trade negotiations on prices and the economy. And Powell is likely to reiterate his patient approach on rates.
Asia Pacific stocks weak, gold and oil fall
Stocks appear to be settling after the recovery of the last four weeks. The MSCI Asia Pacific index is set to record its first decline after five consecutive sessions of growth.
In Japan, the index Tokyo Nikkei Hang Seng Index loses 1%. Hong Kong loses 0,6%: the maximum weight Tencent is down 0,5% after the presentation of the quarterly data. CSI 300 of the stock exchanges Shanghai and Shenzhen -0,7%. The stock market is almost at par Taipei.
La China, as part of the trade thaw with the US, it has suspended the export ban on items with both military and civilian applications, likely including some strategic minerals such as rare earths, to 28 US companies. The Chinese Ministry of Commerce has put on hold for three months the restrictions announced between 4 and 9 April: the measures last month introduce the export ban of so-called dual-use products. The same entity announced the suspension of the commercial investment ban concerning 17 US companies.
La India Stock Exchange opened slightly lower, Mumbai's BSE Sensex index -0,4%. Slightly higher at the end of the session, stocks of Australia. The Seoul Stock Exchange's Kospi index is at parity. The won appreciates for the third consecutive day against the dollar, at 1.396.
I oil prices have collapsed due to expectations of a possible nuclear deal between United States and Iran, while an unexpected rise in U.S. crude oil inventories last week added to investors' concerns about oversupply. Brent crude futures fell 1,8% to $64,93 a barrel. U.S. crude fell 1,9% to $61,95 a barrel. The price ofgold spot remained virtually unchanged at $3.179 an ounce.
European stocks expected to open slightly lower. At Piazza Affari eyes on Unicredit, Eni, Webuild
European stocks are expected to open slightly lower based on the EuroStoxx 50 futures at -0,3%.
Unicredit. Today at the Ministry of Economy there will be the long-awaited meeting between the government and Unicredit regarding the rigid constraints imposed by the executive with the exercise of the Golden Power regarding the takeover bid on Banco Bpm.
Allianz. The German company reported a 2,1% decline in net profit in the first quarter, worse than expected, but confirmed its outlook for the year. Net profit attributable to shareholders amounted to 2,423 billion euros in the three months to March, compared with 2,475 billion euros a year earlier. That was below the consensus forecast of 2,702 billion euros. The company expects operating profit in the range of 2025 billion to 15 billion euros for 17, compared with 16,0 billion euros in 2024.
Enel, Ansaldo Energia and Leonardo they formalized the establishment of Nuclitalia, a company that will deal with the study of advanced technologies and the analysis of market opportunities in the new nuclear sector.
Eni has signed a temporary exclusivity agreement with the Ares Alternative Credit Management fund for the potential sale of a 20% stake in Plenitude. The announcement was made in a note from the major, specifying that the company's equity value for negotiations has been set at between 9,8 and 10,2 billion euros, corresponding to an enterprise value of over 12 billion euros. "The agreement follows a detailed selection process among several internationally renowned entities that have expressed significant interest in the company," Eni explains.
Iveco closed the first quarter of the year with consolidated revenues of 3,026 billion euros, down 10,1%. Adjusted net profit of 84 million euros (153 million euros in the first quarter of 2024), down 45,1%, with adjusted diluted earnings per share of 0,31 euros (0,57 euros in the first quarter of 2024). Adjusted EBIT was 152 million euros compared to 233 million euros in the first quarter of XNUMX.
2024 quarter with a margin of 5,0% (6,9% in the first quarter of 2024). Adjusted EBIT of Industrial Activities was €117 million (€201 million in the first quarter of 2024), with better pricing and SG&A expense containment actions partially offsetting lower volumes and mix.
Pirelli posted a double-digit increase in net profit in the first quarter with growing margins, confirming 2025 targets even if uncertainties related to US tariffs remain. The tire group announced that negotiations with its main shareholders, the Chinese of Sinochem, have concluded without managing to resolve the problems related to development in the US market.
Prysmian successfully placed a €1,0 billion perpetual, non-convertible subordinated bond, the funds will go to finance the acquisition of Channell ($950 million plus $200 million earn-out). The notes have a 5,25-year non-call period and will pay a fixed coupon of 5,25% (5,375% annual yield) until the first reset date in August 2030.
Salvatore Ferragamo reported slightly lower revenues in the first quarter, mainly due to weak demand in the Asia Pacific region. Turnover amounted to 221 million euros, down 2,6% at current exchange rates and 1% at constant exchange rates, it said in a note. Visible Alpha's consensus had forecast revenues of 223 million euros.
During the call with analysts, advisor Ernesto Greco said that sales in April showed a negative trend.
Dovalue closed the first quarter with growing profits and revenues and revised upwards to over 12 billion euros of Gbv (gross book value) the 2025 target for the new business, confirming the rest of the guidance. A note says so
We Build has been selected or is in an advanced stage of finalization for projects with a total value of 5 billion euros, in low-risk markets including Italy, Australia, Saudi Arabia and North America