The real economy is strengthening and also boosting finance, in a combination that seems light years away from the people still locked up at home due to Covid-19 in almost all of Europe. The March manufacturing data and the US infrastructure plan of 2.250 billion dollars, presented yesterday by President Joe Biden.
European stock markets inaugurate the second quarter close to historic highs, with a closing up, led by Amsterdam +1,23%, while Frankfurt, +0,7%, further updates its record. Slightly more cautious are Paris +0,59%, with France in lockdown, and London +0,35%. Flat Madrid, while Business Square further rounding off its recent gains of 0,25% to 24.710 basis points.
The pace of anti-Covid vaccinations in Europe is "unacceptably" slow, according to the WHO, yet the markets of the Old Continent have now recovered (sometimes with interest) almost all the losses due to the pandemic, thanks to strong manufacturing activity and the rebound of economic-related stocks such as banks and energy. In March manufacturing activity in the euro area has grown at the fastest pace in nearly 24 years. The block's PMI reaches a record level of 66,5 points, against 57,9 points in February. Activity in Italy's manufacturing sector also grew for the ninth straight month in March and at the fastest pace in 21 years despite the coronavirus restrictions. The PMI index edited by IHS Markit stood at 59,8 from 56,9 in February, moving further away from the threshold of 50 which separates growth from contraction.
The United States are also pushing the accelerator: in March, the manufacturing ISM increased by 3,9 points compared to February, reaching 64,7 points. This is the best figure since December 1983 (69,9). This brings us to the tenth consecutive month of expansion, after the contraction of April 2020 caused by the onset of the pandemic. Wall Street celebrates and the S&P500 exceeds 4000 points for the first time. Purchases are poured into technology and communication services. Micron Technology Inc climbed 4,2% after better-than-expected forecasts for the third quarter on higher demand for memory chips, along with 5G smartphones and artificial intelligence software. The disappointing data on new weekly jobless claims, which increased by 61.000 to 719.000, does not seem to cause too much concern.
Investors are rather looking at the over 2.000 billion dollar plan proposed yesterday by President Joe Biden and which provides, for example, 621 billion for infrastructure works in the transport sector and over 300 billion to renovate and build houses and schools, even if to finance it , the corporate tax rate will be raised to 28%, after the Trump administration lowered it from 35% to 21%. According to Mary Daly, the president of the San Francisco Fed, the plan "will push growth, not inflation", feared by some investors.
The Treasury yield is down and is currently trading below 1,7%. The dollar takes a breather again today and the euro appreciates against the greenback, with the exchange rate hovering around 1,176. Commodity futures are in green: gold appreciates by 0,85% to 1730,15 dollars an ounce. Oil, Brent, rises by 0,9% and trades at around 63,30 dollars a barrel, pending the outcome of the meeting of ministers of OPEC and allied countries, including Russia, to evaluate production policy of the group.
Returning to Piazza Affari: the session was slightly affected by the pre-holiday climate, on the eve of the long Easter weekend, but the health sector stocks, Recordati (+2,2%), Diasorin (+2,16%) stand out , Amplifon (+2,08%). It is confirmed in Stm money +1,74%. Well Moncler +1,7% and Leonardo +1,65%, after yesterday's setback.
Stellantis appreciates by 034%, with Exor +0,14%. The president of the family holding, John Elkann in letter to shareholders writes that the automaker will be able to significantly increase its current range of electrified models: “In 2021, with 11 new high-voltage models, we expect to almost triple our global vehicle sales (Bev and Phex) from 139.000 to 400.000 ″.
Oil stocks are positive. The best is Saipem +0,77%. Banks making slight progress starting from Bper, it appreciates by 1,33%. Mps makes its own story, gaining approximately 3,58% after a period in which the stock was somewhat neglected by the market.
Inwit -0,69% and the utilities, Enel -0,68%, Hera -0,55% are at the bottom of the list. Telecom lost 0,39%, pending developments on the single network after the start of operations of the newco FiberCop with the entry of Kkr and Fastweb. Pirelli's losses worsen slightly, -0,16%, after yesterday's slide following the accounts and the multi-year plan, despite the positive opinion of the brokers. "We raise the 2022 estimates to the minimum of adj EBIT (+9%) and target price of 7% to 5,9 euros per share", writes Equita.
Atlantia sells 0,28% pending developments on ASPI. The consortium formed by Cdp Equity, Blackstone Infrastructure Partners and Macquarie Infrastructure and Real Assets has sent the final offer, containing some refinements compared to the one sent on 24 February 2021, for the purchase of the stake, equal to 88,06%. held by Atlantia, or for the purchase of up to 100% of the same in the event of exercise of the co-sale right by the minority shareholders.
Outside the main basket, Autogrill rose by 0,99%, after being strongly sold during the day following the announcement, after markets were closed, of an agreement to sell the US motorway business at a price of 375 million dollars. On the other hand, the shares of Panariagroup rose by 22,8%, approaching the price of 1,85 euro of the takeover bid launched by the majority shareholder Finpanaria with the aim of delisting the stock. Bonds moved little: the spread closed at 95 basis points (-0,28%) and the 0,62-year BTP rate fell to +XNUMX%.
