The banks are doing well, but caution still dominates the European stock markets, which close fractionally higher, while Wall Street travels in opposition awaiting the two key events of the day: Jerome Powell's press conference, at the end of the two-day meeting of the monetary policy of the Fed and the intervention of the US president, Joe Biden, in Congress for the presentation of the 1800 trillion dollar plan. Meanwhile, Christine Lagarde speaks at an Aspen webinar and announces a solid rebound in the euro area economy for the second half. However, ECB policy will not change, because Inflation will remain low in the long run “which justifies our highly accommodative stance”.
Piazza Affari remains nailed to the levels of the eve (-0,06%): Tenaris (+3,36%), Banco Bpm (+2,75%), Bper (+2,24%), Unicredit (+1,37, 5,06%), but Saipem (-2,93%), Pirelli (-2,29%), Stm (-1,52%) and Atlantia (-8,37%) weigh down the list. Outside the main basket Mediaset goes into orbit (+XNUMX%).
In the rest of Europe, Frankfurt +0,4%, Paris +0,53%, Madrid +0,47%, London +0,25% are appreciated. The main boost comes from the quarterly reports of banks such as Deutsche Bank (+10,86%), which apparently is no longer the big bad guy in Europe. The main German institute recorded in the first three months of 2021 a net profit of 908 million, exceeding analysts' forecasts by 50%, against the red of 43 million in the same period last year.
It shines on the Lloyds Banking Group Ftse 100 (+3,5%), which reported profits beyond forecasts. In Paris, on the other hand, we look at the good quarterly accounts of Sanofi (+2,42%). The earnings season also continues overseas and after the results of Tesla (-1,07%), Alphabet (+3,96%) and Microsoft (-3,35%), today it will be Apple's turn (-0,8 %) and Facebook (+0,68%). Meanwhile, Boeing dropped 4,3%, after the sixth consecutive quarter closed at a loss.
While waiting for Powell, there is still a slight tension on government bonds, with falling prices and rising yields. The 1,64-year rate with stars and stripes moves up to +XNUMX%. No changes in direction are expected from the Fed, but traces of future steps will be sought in the president's rhetoric.
The dollar rises slightly against other currencies. The euro trades in line with the previous close around 1,209. Lagarde, speaking at the Aspen Institute, observes: “I didn't have to repeat Mario Draghi's famous whatever it takes but I remember that on March 18, 2020 I indicated that our support for the euro has no limits in terms of our commitment to support the economy of the union. And the message was received."
Among the raw materials oil is appreciated (Brent +1,88%, 67,11 dollars a barrel), despite the pandemic is scourged India, which has exceeded 200 deaths from Covid. OPEC+'s decision to stick to plans for a gradual easing of oil production limits from May to July is encouraging, as it shows that the group is confident in a recovery in global demand. Goldman Sachs expects "the largest jump in oil demand on record, an increase of 5,2 million barrels per day (bpd) in the next six months" as vaccination campaigns in Europe accelerate and the increase in travel question. The easing of international travel restrictions in May will boost demand for jet fuel by 1,5 million barrels a day, according to the investment bank.
The prospect also smiles for the oil stocks of Piazza Affari, which in fact appear well in tune (Eni +0,93%), with the exception of Saipem, penalized by the quarterly results below expectations and by the alarm over the estimates for 2021, due to the uncertainties related to the Mozambique Lng project, which represents 15% of the current order backlog. Broker Jefferies notes that it was “another weak quarter, on a sequential basis worse than Q2020 XNUMX, impacted by the Mozambique issue, however deteriorating margins in offshore E&C are also concerned.”
The banks are dusting off, while Leonardo (+0,69%) tries to raise his head again after the recent losses. Generali appreciates by 0,59% on the eve of the assembly in which Francesco Gaetano Caltagirone will not participate, how anticipated today from a newspaper. The entrepreneur, who is vice president of Leone in which he owns a 5,63% stake, has not deposited his shares and therefore will not vote on the 2020 financial statements of the insurance group.
Out of the main basket Mediaset archives a session on the shields, prompted by press reports of a peace in sight with the French partner Vivendi. The stock also benefits from a flurry of upgrades from brokers after the 2020 results: Kepler Cheuvreux raised its target price to 1,95 euros from the previous 1,8 euros; Ubs at 2,6 euros from 2,25; Barclays at 2,6 from 2,3 and Jp Morgan at 3 from 2,40 euros with an "Overweight" recommendation.
In bonds, the spread narrowed to 106 basis points (-1,06%), while the BTP rate is +0,83%. On the primary market, 6,5 billion six-monthly BOTs were auctioned by the Treasury, with a yield of -0,481, an increase of 5 cents compared to the previous month's auction. Good demand which stood at 8,692 billion euros, with a supply-demand ratio of 1,4. The auction regulation falls on April 30th.
