A mixed end to the week is looming for the equity markets, which are clearly having difficulty interpreting an unprecedented geopolitical situation, which is difficult to understand. Suffice, by way of example, the performance of two heavyweights, Apple and Amazon, who presented their quarterly reports yesterday evening. During the session, the two stocks achieved a robust rise of 4%. But after the Stock Exchange, Amazon it left more than 10% on the ground after announcing slowing revenues, estimated at between 116 and 121 billion.
It went better Apple Lossless Audio CODEC (ALAC),, driven by the successes of the iPhone even in times of consumer crisis. But the company has warned that problems in logistics will curb the boost to sales in the current quarter: the CFO Luca Maestri specified that the impact will be between 4 and 8 billion dollars. Hence the fluctuating title, down this morning by a generous 2% in early trading.
Only the performance of Meta (+17,6%): futures on the US technological stock market this morning show a drop of 1%. The European stock exchanges are doing better, starting a positive opening pending the data on EU inflation.
Asian lists accelerate, but April closes in the red
Asia Pacific equities are accelerating higher after a mixed start, but April balance sheet is deep in the red. Hong Kong's Hang Seng gains 2%, the month ends down 5,5%. Tokyo Nikkei +1,7%, -5% per month. CSI 300 of Shanghai and Shenzen price lists on parity, -5% per month. Seoul Kospi +0,8%, -1,9% per month. Mumbai's BSE Sensex +0,7%, -0,2% per month.
US GDP falls, but consumption continues to advance
The unexpected setback in GDP (-1,4% in the first quarter) did not weigh on the American markets due in particular to the depletion of company stocks and the trade balance deficit. But consumer spending and corporate investment spending remain solid.
US President Joe Biden has asked Congress for $33 billion in support of Ukraine: a drastic escalation in US funding for the war against Russia.
WTI oil, up 3% yesterday, is flat this morning at $105. Euro in slight recovery to 1,051, first hint of recovery after six consecutive sessions of decline.
Flies inflation in Germany. De Guindos: in the summer he will lose strength
The vice president of the ECB, Luis De Guindos, said yesterday that inflation is starting to lose steam: "My assessment is that we are very close to the peak and we will start to see a decline in inflation in the second half of the year," the banker told the European Parliament's Economic Committee on the day the price run hits 7,1% in Germany and 8,3% in Spain.
The EU will sue whoever buys gas in rubles
In the meantime, the uncertainties regarding oil and natural gas continue, yesterday however down by 7%. Two gas distribution companies in Germany and Austria said they were ready yesterday to accept the payment method in euros for rubles requested by Gazprom and the Hungarian government itself claims it wants to honor "its obligation to pay for Russian gas in a way that guarantees its regular supply". But the vice president of the Commission, Valdis Dombrovskis, said that the EU executive is ready to open legal actions against governments and companies that will bow to the Russian diktat.
Euros at lows. Bank of Italy: we are preparing to raise rates
Against this backdrop, the retreat of the euro continues, having slipped to 1,0490, its lowest since 2016. Against this backdrop, the Bank of Italy is also gearing up for a new scenario: end of purchases by the ECB, rate hike in the third quarter, "as long as it's gradual", warns Ignazio Visco in an interview with CNBC. Regarding the weak euro, the governor said: "We must be very careful because we have to ask ourselves whether this can lead to further increases in inflation in a context of extreme uncertainty in the geopolitical situation and sharp increases in energy prices" .
The spread jumps to 183. The new Btp is up for auction today
The rise in German inflation fueled expectations of a rise in eurozone rates, with the result of putting pressure on the spread between the BTP and the Bund, which shot up to 183 points (from 176), a new high since March 2020, at on the eve of today's auctions, as well as the EU inflation data for April.
The ten-year rate stood at 2,73%, a new high since March 2020, against 2,57% at the start. The increase falls on the eve of data on EU GDP for the first quarter (+0,3%) and those relating to inflation and Italian GDP for the quarter (+6,5% and -0,2% respectively).
Another highlight of the day will be the medium-long term auctions, in which the Treasury will make available up to 8 billion euros in the new 10-year BTP and in the reopening of the 5-year BTP and the 7-year CCTEU.
The EU Stock Exchanges are positive. Milan above 24 thousand points
The mood of the European markets, supported in the morning by the performance of Meta, cooled down in the afternoon after the release of the US GDP data. But in the end, the stock markets recovered to close on positive ground.
Piazza Affari rises by 0,95%, regaining 24.055 basis points. The result is in line with Paris (+0,98%). The other squares are even brighter: Amsterdam +1,38%, Frankfurt +1,35% and London +1,15%. Cautious Madrid, +0,37%.
Volvo +8% leads the car recovery. War comes out of Lvmh
After two years, Andrea Guerra leaves the French luxury group Lvmh, of which he was a member of the executive committee and head of the hotel business, to pursue new business projects. The former CEO of Luxottica, who had also taken over the supervision of the Fendi and Loro Piana brands and the eyewear business Thelios Eyewear for Lvmh, will remain in office until the end of May.
The automotive sector is flying under the impetus of Volvo (+8,46%), which has communicated profits beyond analysts' forecasts, thanks to the strong demand for its products. Ferrari rises in Milan (+1,85%).
Generali, towards Donnet's victory. But Caltagirone exceeds 30%
The great challenge of Trieste will take place in the day, but the outcome was probably anticipated by the explanations of vote which allow reliable projections. The board list wins, but not by much. And Donnet will have to deal with a very fierce minority. More than 70% of the share capital will be represented today in the meeting, with a massive presence of international funds, decisive for guaranteeing victory for the board against the Caltagirone list, which, 31% strong, will appoint three directors out of 13 and will have a minority blocking of any extraordinary operations. For Donnet, who received 38% of the votes, they would have voted, in addition to the 19,5% formed by Mediobanca, De Agostini and Della Valle (0,5%), a similar slice made up of large funds such as Blackrock and Norges, and smaller, opportunistic funds.
Qatar buys Coima (+20,3%). Brick boom in Milan
In Piazza Affari, Coima Res flies out of the main basket, +20,37%, following the announcement of the takeover bid by Evergreen, controlled by Qatar holding, on all the company's shares. It is a confirmation of the real estate boom in Milan.
After the accounts Stm wakes up, Diasorin runs
Among the best stocks are the industrials: Interpump +2,8%, Stellantis +1,2% and Prysmian +1%. Stm also did well (+1%), in the wake of the positive judgments of analysts on the group's quarterly report. Nexi (+1,2%) and Diasorin (+3%) are also picking up.
Banks tend to be negative. Intesa Sanpaolo goes against the trend (+0,3%) on the eve of the shareholders' meeting. Among the worst of the day Leonardo (-1,1%), at the center of profit taking.
Avio, the Italian adventure in space, goes into orbit
Avio (+3%) is among the best stocks. At the beginning of the month, Vega C was chosen by the European Commission and ESA to launch, in the first half of 2023, the Sentinel 1C satellite for Earth observation through synthetic aperture radar technology. Applications range from environmental monitoring to security.
