China's support for the banks, some brilliant quarterly reports and the turbo-charged start of Wall Street (thanks to the technological) have today brought about a breath of optimism on European stock markets, which closed higher on the eve of the ECB meeting. The Eurozone PMI indices for January also improved, although the level still indicates contraction.
The only flaw, on an overall positive day, is the rise in gas prices in Amsterdam (+5,8%, 28,800 euros per MWH), after Qatar hypothesized delays in deliveries of liquefied natural gas (LNG) due to attacks in the Red Sea. Moreover Edison announced that an LNG cargo that was supposed to arrive at the Italian Adriatic LNG terminal, off the coast of Rovigo, passing through the Suez Canal, has been cancelled.
In energy, however, there is little movement Petroleum, with Brent at 79,68 dollars a barrel (+0,16%).
Europe in rally with quarterly reports
Business Square rose 0,87% to 30.338 basis points, led by Ps (+4,96%) ed Hera (+3,13%). The market rewards the stock of the oldest bank in the world by betting on the return to the dividend, after 13 years of famine, already from the 2023 results. The Emilia-Romagna utility instead rebounds after some weak sessions and following the presentation of the industrial plan to 2027, which provides for five-year investments of 4,4 billion euros and a gross operating margin of 1,650 billion.
In the rest of Europe Frankfurt appreciated by 1,6%, with Sap (+7,54%) at historic highs after beating analysts' consensus on 2023 operating profit, also announcing a restructuring plan for 2024 which will affect 8 thousand positions, linked to group's intentions to use artificial intelligence. It also flies Siemens Energy, +5,32%, after preliminary quarterly results beat market estimates.
Amsterdam makes a jump of 2,43%, in tow Asml Holding, +8,57%, which beat fourth-quarter earnings estimates and highlighted quarter-over-quarter order growth. Luxury stocks give a boost to Paris,+0,91%. What is pushing the big names, the most exposed to the Chinese market, is the decision of the Chinese central bank to reduce the amount of liquidity that banks must hold as reserves to 0,50% starting from February 5th.
They close higher Madrid +1,2% and London + 0,57%.
PMI improving in Euroland and the USA
In the macroeconomic context, the flash estimate of the PMI indices of January, from which it emerges that things in the euro zone are less worse than expected and France and Germany beat estimates. The manufacturing index rises to 46,6 points from 44,4 in December; the services index drops to 48,4 from 48,8; the composite index improved to 47,9 from 47,6. It remains below 50, therefore contracting, but at least the economic activity of the bloc is losing ground at the slowest pace in six months.
Much more news comes from overseas where in January the manufacturing PMI it returned beyond the border of 50 to 50,3 (from 47,9 in December) and the services data also beat expectations, rising to 52,9 points from 51,4. The composite index therefore moves to 52,3 from 50,9 in December.
In this context theeuro, which during the day had returned above the 1,09 threshold, is currently still trading higher, but below that level.
Wall Street headed for new records; Netflix rally
Wall Street in the meantime it seems set to set new records, at least with the S & P500 (+0,6%) which closed yesterday at new highs for the third session in a row. Leading the index is Netflix (+13,27%), which added 13,1 million new users in the fourth quarter of last year. AT&T instead it disappointed analysts with its forecasts for 2024 and its stock dropped 3,8%, while Tesla e IBM they are appreciated while waiting for the accounts.
For some market observers there is also a “Trump effect”, after Tuesday's Tycoon won the New Hampshire Republican primary, scoring another blow for revenge against Joe Biden in November. Some traders recall the market rally when Trump was president, while the prospect of his potential return to the White House weighs on the Mexican peso.
Piazza Affari, banks doing well, Telecom in the red
The day was full of emotions for Piazza Affari. The banking sector they found the right tone and, led by Monte Paschi, they closed in clear progress Understanding + 2,26% Unicredit + 1,93% Bper + 1,79% Bpm bank +1,74%. Among oil stocks it still shines Saipem +2,98%, while utilities raise their heads again with Hera, but Enel it also loses 0,28% today. Similar fate for Terna -0,441%.
Bene Getting very +2,52%. Plus sign in the industry for Iveco +2,45% and Prysmian +1,77%, while Stellantis it is flat after HSBC cut the recommendation to "Hold" from "Buy", reducing the target price to 22 euros from 24 euros.
The black jersey of the day goes to Telecom, -1,9%, weakened by the decision of its largest shareholder, Vivendi, to ask to the European Commission to examine the role played by Italian treasure in the plan to sell the landline (according to a letter seen by Reuters). A move that could lengthen the network's sales times.
They go down Campari -1,85% and Diasorin -1,01%.
Spreads down
The panorama is also green on the Italian secondary sector: lo spread between ten-year BTPs and Bunds of the same duration it is at 158 basis points and the rates fall to 3,88% and 2,3% respectively.
