Jay Powell, austere lawyer before Fed chairman, to explain the need to keep interest rates low despite signs of recovery, yesterday also referred to a homeless camp that stands on the road between his home and the headquarters of the most powerful bank of the world. A rhetorical image that one does not expect from a Republican banker, but which well illustrates the political climate inspired by Joseph Biden, focused on the accelerated recovery, for now free from inflationary pressures and fueled by the prospect of taxes collected from multinationals. It is the ideal setting to guarantee the resistance of the Toro, which continues to shatter records with an almost boring regularity.
THE BIG ARE RUNNING AGAIN, WAITING FOR THE QUARTERLY
Yesterday it was the turn of the S&P 500 index (+0,42%, to 4.097 points), supported by the Bigs: Apple, Microsoft and Amazon led the rise in anticipation of the quarterly season which will start next week under good auspices: it is expected an average increase in profits of 24,2%.
The Dow Jones index (+0,17%) and the Nasdaq (+1,03%) were also positive.
Technological stocks pick up again, the ghost of inflation vanishes: the 1,624-year T bond falls to 1,776%, canceling the "mini-bubble" at the end of March at XNUMX%. Meanwhile, the New York Fed launches purchasing advice: there is ample availability of paper at twenty, warns a senior executive of the system's most important branch.
COMMODITIES PUSH UP PRICES IN CHINA, TOKYO RISES
The signals arriving from the United States seem capable of neutralizing the effects of other less encouraging signals. In particular, the surge in inflation in China, after the explosion in producer prices: +4,4% year on year, the strongest increase in the last two years. The explanation for the rise lies in the increases in raw material prices in correspondence with the recovery of industries, but it falls in a prudent context: the Central Bank is committed to curbing the real estate boom.
As a consequence, the stock market is also slowing down: the CSI 300 index of the Shanghai and Shenzen stock lists loses 1,3%: the fall of more than 2% during the week.
Hong Kong's Hang Seng is down 0,7%, Sydney's S&P ASX 200 is down 0,3% and Mumbai's BSE Sensex is on par. South Korea's stock market moved little, while Japan's rose: Nikkei +0,3%.
Oil moved little this morning. However, WTI crude slipped below the 60 dollar a barrel level.
DRAGHI CALLS ERDOGAN AS DICTATOR, FURIOUS Türkiye
Futures anticipate a flat start to Eurozone stock markets. Prime Minister Mario Draghi, while anticipating that the time for reopening is approaching (vaccines permitting) has not indicated precise dates. In the international press, much prominence is given to the harsh words spoken on Erdogan "dictator": a diplomatic slip or, after the sorties on the disappointing management of vaccines, a new signal of the will to take charge of the shortcomings of the management of the EU Commission?
LAGARDE: SUPPORT MEASURES MUST BE MAINTAINED
“Higher risks in the short term, more positive developments in the medium term”. This is the framework underlying the ECB's policy, as emerges from a reading of the minutes of the meeting of 10/11 March: to intensify bond purchases this quarter and then reduce them later if and when the situation permits. The moment has not yet arrived, judging by the words of Christine Lagarde who, in the message sent to the 43rd meeting of the International Monetary and Financial Committee, reiterated that "it is essential to refrain from prematurely withdrawing support measures, both on the monetary side and on the tax side". Several governors, including the Dutch Klaas Knot and the Austrian Robert Holzmann, have instead already expressed the hope that Frankfurt will be able to start reducing purchases in the third quarter, when the pace of vaccinations will increase and the health crisis will decrease.
MILAN -0,66%, LEGEND IN EUROPE
Piazza Affari, weighted down by the banks, closes the session again in the dark with a loss of 0,66%, at 24.576 basis points, moving away from the technical barrier of 25 points. The government is working on a new expansive decree with measures worth over 30 billion euros, according to State Accountant General Biagio Mazzotta. The extent of the new variance, which should be made official next week, is likely to push net borrowing above 10% of GDP this year, added a government source.
LUXURY RUNS IN PARIS, LONDON AWARDS ASTRAZENECA
The other European markets were positive: Frankfurt +0,25%; Madrid +0,41%.
Paris +0,57%, rewards luxury: Lvmh +1,5% to 587,30 euros, hits a new historic record as does L'Oréal + 2,35% to 339,05 euros. Hermès +2,7%, Kering +1,8%.
In London +0,57% AstraZeneca +2,3% did not suffer from the news on the risk of thrombosis.
AMSTERDAM, RECORD BLOCK SALE: 14,7 BILLION EUROS
Amsterdam +0,47%The Dutch investment group Prosus advanced by 1,8% after the sale of 2% of the Chinese Tencent for 14,7 billion dollars, the most important block sale ever in the world.
SPREAD AT 100, FOR FOREIGNERS 88% OF THE 50 YEAR OLD
The spread between the ten-year Italian and German bonds falls to 100 basis points, with the yield on the ten-year BTP falling back to +0,66%.
The market has already absorbed the dual tranche syndicate placed yesterday for 12 billion euro. According to a Treasury note, foreign investors took the lion's share by taking 88% of the new 50-year and 74% of the reopened 7-year.
COLD SHOWER ON UNICREDIT, AWAIT DISAPPOINTING ACCOUNTS
The slowdown of the banks, in particular of Unicredit, influenced the Italian list: -3,36% under the pressure of the sales of the brokers returning from a confrontation with the management on the anticipation of the evidently disappointing results for the first quarter.
Sales also on Banco Bpm (-2,15%), Bper (-1,69%) and Intesa (-1,63%).
PEREZ GIVES ATLANTIA A CHARGE FROM REAL MADRID
On the other hand, Atlantia (+3,1%) stood out after the Financial Times published a letter in which Florentino Perez, president of Acs, said he was interested in buying Autostrade per l'Italia, also in partnership with others (not excluding CDP) at a price of around 10 billion, higher than the estimates circulated so far. Acs recently sold Vinci energy for 4,9 billion euros.
MEDIOBANCA PROMOTES SAIPEM, BRAKES TENARIS
Well done Saipem (+1,82%) in the wake of the promotion of Mediobanca securities, which raised the target price of the stock from 2 to 3 euros, emphasizing the prospects offered by the works for the energy transition.
Instead, Tenaris slows down (-2,56%).
IT'S RAINING BUY ON MONCLER, FERRAGAMO IN RED
The wave of purchases of French luxury houses also touched Piazza Affari: Moncler +1,74%. Goldman Sachs raised the target price on the stock from 54,9 to 57,3 euros, confirming the buy recommendation. "We incorporate the acquisition of Stone Island into the estimates," completed on March 31, the analysts explain. For experts there is now limited space for further M&A activity in the medium term. Based on revised projections, Goldman Sachs highlights, the stock “trades at a multiple of 19 times 2022 EV/EBIT, at a discount of approximately 15% compared to its competitors' average of 23 times”. Target price also increased by Jefferies, which goes from 54,5 to 55 euros, confirming the hold recommendation.
Ferragamo instead loses 1,22%, following the news that Paul Andrew will leave the role of creative director of the maison which he has held since 2019.
Campari did well (+1,45%) after Credit Suisse raised its target price to 9 euros from 8,80.
Positive Inwit (+1,62%). Among the utilities: Snam +1,15%; Enel +0,76%; Terna +0,52%.
Leonardo loses his shots (-1,14%), which is weighed down by the harsh words of the Milanese sentence on Mps, which involves the current Alessandro Profumo.
BOFA SENDS AVIO INTO ORBIT, DE LOMGHI LIKES IT IN THE USA
Exceptional performance by Avio (+16,67%). The company was launched into orbit by a report by Bofa Merrill Lynch which believes a doubling of prices is possible in the face of the strong growth in demand for space activities, starting with the Vega launchers. The target is 26 euros.
Among the mid caps, De Longhi made progress (+2,42%), following the placement of bonds with US institutional investors for 150 million euro.
Maps shined on the AIM (+21,88%): Kt&Partners raised the fair value to 4,36 euros per share on the company active in the field of digital transformation.
