The central banks do not lower their guard but the Bull continues its run breaking new records. It is leading the way Tokyo, For the first time in history above 40 thousand points: the Kyodo agency is close to the official announcement of the end of deflation. Meanwhile, Bank of America raises the S&P index target to 5.400 points.
Tokyo over 40 thousand points. China is running
A note from optimism also comes from China where everything is ready for the opening of the National People's Congress tomorrow. The positives outweigh the negatives and that's why we believe in a solid rebound of the economy,” said Congress spokesperson Lou Qinjian. L'CSI 300 index China in February was the best index globally with +9,50%; Me too'MSCI World index it completed the seventeenth positive week (+0,9%) of the last eighteen, with new absolute tops.
THETAIEX index of Taipen is up 2% due to the jump in Taiwan Semiconductor Manufacturing +5%. On Friday the Sox semiconductor index gained 4,3% to 4.929 points, a new all-time high. For similar reasons, the Kospi in Seoul is up 1,3%. India is also at the top.
The week ending between February and March also saw i new absolute tops of NASDAQ Composite and NASDAQ 100 on Wall Street new historical highs of the Dax (Germany) and of the EuroStoxx 600, and new highs since 2000 of the Eurostoxx 50;. But also new 15-year highs for the FTSEMIB.
At the start of the day, the FtseMib opened negative, -0,16%.
OPEC calls for new production cuts
What could undermine these records could be theincrease in raw materials, oil on the head. Black gold closed the week up by +2,4%, from -2,2% in the previous week, reflecting the uncertainties that still dominate the market. The profit is to be attributed to OPEC+ decision to extend voluntary oil production cuts by 2,2 million barrels per day in the second quarter. There Russia will reduce production and oil exports by an additional 471.000 barrels per day in the second quarter, in coordination with some OPEC+ participating countries, Russian Deputy Prime Minister Alexander Novak said on Sunday.
Natural gas is growing
Il EU Natural Gas (25,80 euros/mwh) closed the week with a rebound of +12%, the largest since October. The EU must prepare for the “worst case” scenario on Russian gas supplies in view of the expiration of the transit agreement between Moscow and Kiev, expected at the end of the year. This is what emerges from an internal document of the EU Commission.
A week full of events begins. On the agenda Tomorrow March 5th is “Super Tuesday” which will decide the two challengers to the US presidency. Expectations are for one rematch of the Biden/Trump clash. The. will be held on Thursday 7 March ECB meeting. Data on the US labor market will arrive on March 8, which will either strengthen or weaken the market's beliefs about cuts in the cost of money.
I inflation data released on Friday confirmed the easing of pressure, even if not in the optimistic expectations hoped for by experts. Inflation in February grew by +2,60%, analysts expected a more pronounced cooling of the annual index to +2,50%, from +2,80% in January. The "core" figure was +3,10%, it was estimated at +2,90%, from +3,30% previously. However, this is the slowest pace since March 2022.
Portugal returns to Serie A
Portugal: Standard & Poor's improved its rating of Portuguese sovereign debt from BBB+ to A-. Portugal is back on an A level in all four major financial rating agencies. This hasn't happened since the 2011 crisis, which justified the Troika's intervention with an emergency loan of 78 billion euros.
Euro/USD (1,084). The Dollar ended the week slightly lower (-0,2%), after mixed indications arrived from the US macroeconomic front. The ISM manufacturing index fell to 47,8 from 49,1 in January, the consensus was 49,5. It has lost ground especially new orders component, which returned to the contraction area last month, after having risen back to the expansion area in January. In this climate, the markets await the Fed President's hearings in Parliament. It is probable that Jerone Powell will not deviate from the line: it is too early for a rate cut expected in June at the latest.
The data on will be released on Tuesday Italian GDP in the 4th quarter. Friday will be the turn of the Eurozone GDP and employment for the 4th quarter. Also on Friday, data relating to the unemployment rate in the United States and the producer price index for January in Italy will arrive.
Finally, the data on inflation and the producer price index for February will be released on Saturday China.
To follow the Bitcoin who opened the session by touching new highs from November 2021 to 64.279 usd. The week ended with a +21,40% rise, the largest since January 2023. The cryptocurrency industry is throwing itself into the 2024 US elections, spending millions of dollars in the primaries of Super Tuesday in California, Alabama and Texas to promote crypto-friendly candidates and defeat those pushing for more regulation.
The FDA promotes Diasorin, more sales for Stellantis
Spotlight on Diasorin: Liaison Plex, one of the molecular tests that analysts expected to be approved in the USA by the end of 2024, received the green light from the FDA (Food and Drug Administration) a few months early. The company released a statement last night to explain the news regarding a product aimed at a potential market of almost three billion dollars. To date, the French company Biomerieux dominates this area of testing.
stellantis: Stifel raises the target price to 32 euros. Car registrations in Italy in February amounted to 147.094 units, with a growth of 12,8% on the same month of 2023, according to data released by the Ministry of Transport. The Stellantis group recorded an increase of 17,6% with a market share of 33,2%. Il Sole24Ore reported yesterday that the Peugeot family could increase its stake by taking over shares from the French state.
Ferrari: Citi cuts to Sell, target price 329 euros.
Moncler: Stifel raises the target price to 62 euros.
Enel sells 49% of the business of batteries and storage to Sosteneo, a Generali group company, for approximately 1,1 billion euros.
