The number of has never been so high Americans who own stocks: 58% of families compared to 53% in 2019. This was underlined by Wall Street Journal attributing the cause (or credit) to the pandemic which pushed many to bet the money from the subsidies on the market. It was not a temporary phenomenon, writes the WSJ, because most brokers jumped into this new market by offering zero commissions and other advantages.
58% of Americans own stocks
Today, alongside investment funds and pension plans there is a 21% of small shareholders which significantly affects the performance of Wall Street. The market, moreover, faces the 2024 in good if not excellent condition. Never in the past have the big names on Wall Street, from Mike Wilson of Morgan Stanley to Micheal Kantrowitz of Piper Sandler, been so generous in their valuations. Analysts, regardless of the Fed's warnings, are already taking into account the upcoming rate cuts.
The long wave of the rise also laps the European markets. European stock markets opened slightly higher. The FtseMib index in Milan, which closed yesterday down 0,4%, gained 0,3% at the opening to 30.334 points.
Iliad attacks Vodafone Italia
The issue of reorganization of telecommunications is gaining speed. Iliad announced that he had presented a Vodafone a proposal of merger between their respective activities in Italy through the establishment of a new company in which the two groups would hold 50% each. The proposal, evaluate Vodafone Italia 10,45 billion euros.
The race of the Magnificent Seven
They keep running the “Magnificent Seven” of US stock exchanges. Under their pressure the Nasdaq 100 (+0,6%, 16.729) came within one point of its historic record. The FANG Plus index (+1,4%, 8.731), which brings together the ten excellences of the American tech world, marked the new all-time high. The S&P500 (+0,4%, 4.740) is about two points away from its record and obviously thanks to big tech.
The magnificent seven of Wall Street – Apple, Amazon, Alphabet, Microsoft, Nvidia, Meta and Tesla – today alone represent the 30% of the S&P500 index but also 20% of the MSCI World index, which brings together the excellence of all the developed markets of the globe. Which is to say that when you invest five dollars on the world's stock exchanges, we know that at least one of them ends up, like it or not, in the big seven.
After Vice President John Williams and the governors of the Atlanta and Chicago Fed, also the number one of the Cleveland Fed, Loretta Mester, sent a warning: in his opinion the markets "are a little ahead" in anticipating a normalization of monetary policy. In the interview given to Financial Times, the board member says he is anticipating three quarter-point cuts in 2024, half of what investors expect.
Adjustment day also for the bonds, with the yields of the main government bonds rising slightly from the lows of the period following calls for prudence from central bankers. Yield of Treasury Notes ten-year Treasury Note at 3,93% from 3,90%, two-year Treasury Note at 4,45% from 4,40%. Ten-year Bund at 2,11% from 2,09%. ten-year BTP to 3,75% from 3,71%, the lowest level since January.
Apple, the smartwatch at risk
Apple Lossless Audio CODEC (ALAC), lost just under 1% on the news of the stop selling two versions of its smartwatch in the United States. The decision stems from a legal dispute with medical technology company Masimo over an oxygen sensor. Apple Watch it is worth approximately 5% of the Apple group's consolidated sales.
Japan does not change course
Nothing new for the Japanese stock market. As expected the Bank of Japan did not raise rates. The central bank's statement makes no mention of upcoming changes. While waiting for the press conference of the governor of the Bank of Japan, Kazuo Ueda, the Tokyo stock exchange salt and it Yen weakens: Nikkei index +1,4%, Usd/yen at 143 from 142,6 yesterday.
China stock markets fall, Hang Seng by Hong Kong -0,7%, CSI 300 of price lists Shanghai and Shenzhen -0,2%. A 6.2 magnitude earthquake devastated an area in North East China last night: the Xinhua agency reports that there have been at least 116 victims in the districts of Gansu and Qinghai. The Taipei stock market fell by 0,6%, while the Kospi in Seoul was around parity. The S&P/ASX0,8 index closed up 200%. Sydney.
The Houthis support oil
Petroleum fifth consecutive rise: Brent at 78 dollars. Geopolitical tensions are once again playing in favor. Attacks by the pro-Iranian Yemeni militant group Houthis against ships in the Red Sea are causing disruption to maritime trade and major global freight companies are forced to reroute around the Cape of Good Hope to avoid the Suez Canal. The Houthi movement has launched a series of missile and drone attacks against ships in the area, calling them a response to Israel's assault on the Gaza Strip. Several large freight companies have begun sailing around Africa, adding costs and delays that industry analysts say will worsen in the coming weeks.
Unipol agreement renewed, no abuse for Telecom Italia
TLC still in the limelight. There was no abuse of a dominant position by Telecom Italy in the Conscia race. The Competition and Market Authority has closed the investigation into Tim regarding a possible abuse of dominant position as part of the ninth edition of the tender announced by Consip for the supply of mobile telephone services for the Public Administration. We read in the weekly Antitrust bulletin. The investigation arose from a request presented by Fastweb.
Unicredit will seek to complete acquisitions in the coming years in Central and Eastern European countries while operations in Germany, Austria and Italy are less likely due to market conditions and excessively high prices, CEO Andrea Orcel said in an interview in Faz.
Unipol: The agreement between some shareholder cooperatives, which collects approximately 39,7% of the share capital, was tacitly renewed for three years until 15 December 2026, as no cancellations were received by the deadline of 15 June.
