The European stock markets closed today an uncertain session, lived under the sign of caution and only slightly encouraged in the afternoon by the trend of Wall Street and by the purchases on Nvidia (+2%) on the day of the AI chip giant's eagerly awaited quarterly results. However, the US stock market is currently slowing and moving in a mixed fashion (DJ -0,3%, S&P 500 +0,19%, Nasdaq +0,48%).
Piazza Affari, after a brief foray into positive territory, closed down 0,44% at 42.651 basis points, held back by Leonardo -4,86%, amid a weak defense sector across the continent (at its lowest level in two months). The sell-off in arms stocks was prompted by reports on the Axios website and the WSJ of a peace plan negotiated between the United States and Russia to end the war in Ukraine. This is said to be a twenty-eight-point plan modeled on the one used to resolve the Gaza crisis.
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Rheinmetall (-6,64%) is in deep red in Frankfurt and the Dax also finally erases the afternoon gains. Paris does the same, while London falls by 0,46%Amsterdam and Madrid rose by 0,44% and Madrid by 0,46%. On the macro front, inflation data for October were released in Europe: in the euro area, inflation slowed to 2,1%, from 2,2% in September, and is increasingly close to the ECB's target; in the United Kingdom, inflation fell to 3,6% from 3,8% in September (an 18-month high).
Wall Street rises: It's Nvidia Day
There's a certain amount of excitement on Wall Street today as markets close for Nvidia to reveal its quarterly results tonight. Will the numbers from the world's most capitalized company, which led the AI rally, be the pin that bursts the bubble or the helium that sends the sector's value soaring even higher? According to the Financial Times and Reuters, the giant's shares are poised for a a swing of $320 billion based on earnings, the biggest for this stock and the consequences will be felt.
Markets are also awaiting another key moment tomorrow: the September employment report, which, after several delays, is finally due out tomorrow. This will offer investors a compass for navigating the uncertainties surrounding the Fed's monetary policy, after contradictory statements from officials and a lackluster macroeconomic data set due to the lockdown have pushed the probability of a rate cut in December down to around 50%.
In equities, most megacaps and growth stocks today are mixed, although Alphabet outperforms with a 4% jump The target is lowered marginally after recording a worse-than-expected decline in quarterly sales, with US consumers facing economic hardship cutting discretionary spending. The health of US consumption will also be revealed in Walmart's financial statements in the coming days.
Dollar and gold rise, bitcoin continues to fall
The dollar is slightly recovering on the foreign exchange market today, with the euro falls by 0,3% at a cross of 1,1544. The greater strength of the dollar is not, however, slowing buying in gold, which is trading up 0,6% at $4093 an ounce, perhaps a form of insurance against the risks deriving from Nvidia's results.
Prospects for peace in Ukraine are weighing on oil, which had seen bullish signs in the preceding hours and the prospect of US sanctions against Russia. January futures for Texas crude and Brent crude are both down about 2,5%, at $59,12 a barrel and $63,38, respectively. Bitcoin falls further, down about 3%, at $90.394.
Piazza Affari: Prysmian, Buzzi, and Tim perform well
In Piazza Affari today, the podium of blue chips goes to Prysmian +4,91%, Buzzi +2,99% and Telecom +2,69%. Among oil stocks, Tenaris appreciates +2,07%, while Cucinelli grabs a rebound in luxury +1,71%. Banks are mixed. Speculations of Unicredit's (-1,31%) potential interest in Bper (+1,29%) are buoying the Modena-based bank (Pop di Sondrio +1,43%), despite its denial. The declines are led by Leonardo, followed by Recordati (-3,18%), on which Jefferies has cut its price target.
Heavyweight Enel's losses are being felt on the stock market, down 3,03%, after RBC cut its rating to "underperform" from "sector perform," but raised its target price to €8 from €7,8. A2a, down 1,51%, Amplifon, down 1,44%, and Campari, down 1,42%.
Out of the main basket Tamburi marks a new rally +6,19%, already well-bought on the back of the results. Today, Jefferies contributed to boosting the stock, initiating coverage with a 'buy' rating and setting a target price of 12,5 euros.
Slightly decreasing spreads
Spread fluctuations remain modest, and today the balance is slightly in favor of Italian bonds. The yield differential between the 10-year BTP and its German counterpart closes at 74 basis points with rates of 3,45% and 2,71% respectively.
