I European lists they finally catch a rebound after three nightmare days, encouraged by the Tokyo rally and the strong start of Wall Street. But in the evening Trump spoils the party: he raises tariffs on China to 104% and Wall Street plummets.
Piazza Affari climbs back up of 2,44% and finds 33.657 basis points, at Leonardo's tow + 7,45% Unipol +7,25% and banksIn the previous three sessions the Ftse Mib lost 14,5%.
Investors have gone on the hunt for good deals, after the recent sell-off, even at Frankfurt + 2,93% London + 2,78% Paris + 2,5% Amsterdam + 2,82% Madrid + 2,53% Zurich + 3,12%.
After a volatile morning the European indexes found the best tuning by tuning with Wall Street, That is started off in fourth gear right away and is currently showing solid earnings: DJ + 2,59% S & P500 + 2,8% Nasdaq +3,3%. Mega caps like Nvidia e Tesla gain more than 5%. Tech, banking and semiconductors do well.
In Asia shines Nikkei (+6,03%), but Taiwan lost 4%.
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Investors Hunt for Good Deals, While Hoping for Tariff Negotiations. Musk Advises Revoking Customs Duties
I Markets hope for tariff negotiations between various countries and the United States, although, for the moment, it is still wall to wall between the White House and Beijing. “China wants an agreement very much,” Donald Trump assures, “we are waiting for a phone call, there will be one.”
La Ue is pressing the Celestial Empire for a "negotiated resolution" and in the meantime is seeking dialogue with the United States, but keeping "the bazooka on the table", on one hand proposes zero reciprocal duties and on the other prepares new counter tariffs. The best ally of negotiators in this period could be Elon Musk. According to the Washington Post in fact the owner of Tesla (a stock that has lost 135 billion dollars since the beginning of the year), over the weekend tried to convince Trump to revoke the tariffs, including those on China. The attempt has not been successful so far. Meanwhile, in the president's circle frictions are recorded: the trade advisor peter navarro, speaking about Musk with CNBC, said: “we all know he is a car assembler” since “a good part” of Tesla’s batteries come from Japan and China. Musk’s response was terse: “Navarro is dumber than a bag of bricks. Tesla is the car company with the most cars made in America”.
Dollar Strengthens, While Chinese May Devalue Yuan
Indeed there are no certainties yet on how the trade war situation will evolve. If the Japan is ready to negotiate (the Nikkei celebrated with +6,03%) China is turning a deaf ear for now. Some observers point out that Beijing has more tables to play on, from currency to US government debt. Today it yuan fell against dollar at its lowest level since 2023, after the central bank slightly loosened its grip on the currency in what appeared to be an attempt to counter the tariff blow to exports. During the first trade war, the Dragon devalued its currency by 10%, thus offsetting much of the tariffs applied to Chinese goods. If this path were repeated today, it could frustrate one of Trump's objectives, namely the weakening of the dollar.
Looking at the foreign exchange market, at the moment, the dollar appears to be recovering against major currencies. The euro is trading at 1,09 after re-attaching 1,1, while the US currency strengthens against the yen and the pound.
Another bell then rings for the star-spangled government bonds, in a week of intense debt selling. Prices today look down and yields up, with the 4,253-year showing a rate of XNUMX%.
Meantime the question is what Jerome Powell will do, after yesterday's closed-door Fed meeting. The prevailing view is that the bank will make an "emergency" cut in May, even if Powell's words last Friday did not point in this direction, which is why the US inflation data due out on Thursday is being awaited with particular interest.
Also the ECB could cut rates again at the meeting on April 17.
With regard to raw material Gold is back in the market, trading above $3000 an ounce, as is oil, with Brent at $64,35 a barrel and Texas crude at $60,97.
Piazza Affari, banks regain ground
The following contributed to breathing oxygen into Piazza Affari today: purchases on banks, which have suffered particularly in recent sessions. No stock in the sector appears in the top ten of the Ftse Mib, but the increases are robust starting from the big ones Understanding +2,44% and Unicredit + 2,22%.
The blue chip queen is Leonardo, which is finding its best tone after having been recently plundered by profit taking (-15% in the last two sessions). The market is looking with interest at the meeting that the Italian group, together with Thales and Airbus, has scheduled a meeting tomorrow with the EU Commissioner for Competition Teresa Ribera for a possible merger of their satellite activities of the three companies.
On the podium of the price list today climbs Unipol, Followed by Banca Mediolanum +5,37%. Managed savings benefited from the good data on March collections published yesterday and in the sector it is also in evidence with Finecobank +5,26% and Azimuth + 3,81%.
Luxury finds a good boost Moncler + 4,75%.
Among the blue chips, only the following moved against the trend: Eni -1,28% and Stellantis -0,84%.
For the latter, the market is attentive to possible scenarios on Alfa Romeo and Maserati in light of US duties.
Meanwhile Production in Italy plummets -35,5% in the first 3 months, the lowest since 1956, according to data from Fim Cisl.
Spreads up
It is expanding today spread between Italian and German government bonds on the secondary market. The ten-year BTP shows a rate of 3,85%, against 2,63% of the Bund of the same duration, for a differential of 122 basis points (+2,22%).
