The long-awaited rate cut, decided yesterday by the Fed, brought a sigh of relief to the stock markets, but today the stock market is turbocharging – especially on Wall Street, which is moving at a record high – thanks to Nvidia's five billion dollar investment (+3,53%) in rival Intel (+27,8%). In Europe, the stock closed at the highest levels of the day. Piazza Affari rises by 0,84% (42.307 basis points), led by luxury and tech stocks.
Frankfurt is even more buoyant +1,48%, Paris +0,87% and Amsterdam +2,02%. London, on the other hand, limits its gains to 0,19% despite the huge agreement between the United Kingdom and the United States, which will bring a flow of investment of 250 billion pounds in both directions of the Atlantic, following the visit of US President Donald Trump, which concluded a few hours ago with a joint press conference with British Prime Minister Keir Starmer.
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Overseas Wall Street continues to rise strongly and updates its record The three main indices rose. The Nasdaq (+1,13%) led the way, thanks to a surge in tech stocks following the news that Nvidia acquired a $5 billion stake in Intel. The two technology companies will jointly develop PC and data center products. Intel thus strengthens after the 10% stake acquired by the U.S. government in August and the $2 billion injection from SoftBank, which is focusing on chips and cloud infrastructure.
This is also a breath of fresh air for Nvidia, as rumors continue about Beijing's ban on Chinese companies purchasing AI chips from the US giant. Also notable is the agreement that IonQ (+5%) signed with the Department of Energy to promote the development of quantum technologies in space.
The dollar rebounds and T-bond prices decline, while US unemployment claims decline. The pound retreats after the BoE.
The dollar is moving higher against major currencies, and T-Bonds are showing declining prices in recent hours, despite the rate cut decided yesterday by the Federal Reserve. The 25 basis point reduction, widely expected by the market, and Jerome Powell's openness to two more possible cuts by the end of the year, were well received by investors. However, lower-than-expected weekly jobless claims are supporting the greenback and depressing government bonds today, as they allay fears of a labor market slowdown. Claims fell by 33.000 last week to 231.000, compared to estimates of 240.000.
On the foreign exchange market therefore the euro loses about 0,3% against the dollar, for a cross just below 1,18. The pound also weakened (-0,53% against the dollar, at 1,3560) on the day the BoE left interest rates unchanged, as expected. The British central bank also approved a reduction in its government bond purchases by 70 billion pounds over the next 12 months, bringing the total to 488 billion pounds.
Among the raw materials Gold gains are recordedSpot gold loses 0,41% and trades at $3645,20 an ounce. Oil is trading slightly higher. Brent crude is up 0,29% at $68,15 a barrel.
Piazza Affari, STM and Cucinelli on the rise
Blue chips in Piazza Affari Stm are in the spotlight today +4,74% (in a globally buoyant chip sector) and Brunello Cucinelli, up 4,04%, amid well-bought luxury stocks, buoyed by the U.S. central bank's stance. Ferrari, up 3,36%, and Moncler, up 2,44%, also stood out in Milan. Prysmian rose 2,5% after a report from JP Morgan confirmed its "buy" rating, raising its target price to €87 from €86, highlighting the positive impact of the sale of its stake in Yofc.
Le banks are timidly positiveBanco BPM leads the sector with a 1,35% gain, the day CEO Giuseppe Castagna, in an interview with CNBC, returned to the topic of risk, stating that Crédit Agricole "is the most obvious opportunity we have," even if a third group remains in the background. "MPS is another opportunity" for a merger, but "at the moment there is nothing concrete."
Meanwhile, Mediobanca (+0,09%), won by Siena (+0,48%), has received the resignation of CEO Alberto Nagel, who claims to have "defended the legacy of Cuccia and Maranghi." All directors, except Sandro Panizza, have also formally resigned. Unicredit closed with a gain of 0,54% in a volatile session, following yesterday's comments by the CEO. Andrea Orcel who indicated Italy, Germany and Poland such as the countries where potential mergers or acquisitions could bring the greatest benefits to the credit institution.
Le blue chips down further Telecom Italia (-1,22%) and Campari (-1,08%), Terna (-0,91%), A2a (-0,68%), and Enel (-0,62%) are down. Outside the main basket, among fashion stocks, Ferragamo (+6,01%) stands out. According to a trader contacted by Reuters, these are intense covering movements in the stock ahead of tomorrow's technical deadlines. This Friday is, in fact, the third of the month, of this quarter, the so-called witching day on which stock index futures, single stock futures, stock index options, and stock options expire simultaneously.
OVS is doing well, up 1,27%, after better-than-expected half-year results. It's small, but Technoprobe is set to grow, up 14,25%, which performed well today thanks to the buy push with which UBS initiated coverage of the stock, citing its strong development potential linked to AI chips.
Spreads and rates slightly increasing
On the secondary market widens slightly to 83 basis points The spread between 10-year BTPs and Bunds of the same maturity. Rates rose to 3,55% and 2,72%, respectively.
