The light Wall Street rebound yesterday, supported by an index of consumer prices modest, it was not enough to boost the Asian markets and even the European stock markets are showing weakness. Leading the Wall Street yesterday were once again the tech companies, those Magnificent Seven that Goldman Sachs has now renamed the “Maleficent Seven”. Weighing on the sentiment of investors is still the tariff policy of Trump who has not yet finished expressing himself with the main concern being on world economic growth, including the United States, while the issue of the block on federal funding, the shutdown, has also resurfaced in Washington. Now it is Europe to meet directly in Trump's sights after the threat of countermeasures by the EU.
Wall Street Recovers Thanks to Tech, Dubbed the “Evil Seven”
Yesterday's US inflation data, while expected, did not provide enough direction for markets. On the one hand, the data offered some relief after a series of discouraging indicators in recent times, on the other hand, it showed a cooling of inflation only on the services side, which does not improve the PCE price index, the Fed's preferred indicator for deciding its monetary policy. Moreover, the February data did not fully reflect the impact of President Donald Trump's tariff wave. US stocks rose after two days of heavy losses on the data, recovering from a slump that put the S&P 500 on the brink of a technical correction. But anxiety over Trump's policies continued to influence sentiment, and a more than 10% drop in the S&P 500 in just three weeks does not appear to be prompting Trump to reconsider US policy.
Wall Street rebounded yesterday, after the Nasdaq's black Monday (-4%), but it could be a fuoco di paglia according to the indications of the futures. The general movement is still led by Tech, which is looking for a new balance point after the strong collapse that started in mid-February (-17% approximately). The index of Magnificent Seven yesterday it grew by +2,27%, the Nasdaq Composite of 1,22%, the'S&P500 by 0,5%, the Dow Jones closed down 0,2%. Tesla bounced back by +7,6%, Nvidia +6,4%. For analysts at JPMorgan and Citi, the recent contraction of Nvidia It is a buying opportunity. As for Tesla, analysts expect a difficult first quarter, given the latest delivery data for January and February and brand concerns after Musk's rightward swing.
Goldman Sachs has reduced its year-end target for the S&P500 index to 6.200 points from 6.500. Yesterday, the index closed at 5.599 points, which gives it a potential upside of about 11%. The strategists of the American bank have nicknamed the Magnificent Seven the “Maleficent Seven”.
RBC Capital believes that, although Wall Street valuations have improved, they are still not at levels that justify a broad buy signal. For the broker, the'Russell 2000 Index has become more attractive than the S&P 500 and Nasdaq 100, where the top 10 stocks by market capitalization remain well above average valuation levels.
Overall, a uncertain picture which still calls for caution when it comes to buying Wall Street technology stocks. Europe is better at this stage with an eye on China.
Europe now in the crosshairs of Trump's tariffs
It is now Europe's turn to find itself squarely in Trump's crosshairs after the EU threatened countermeasures, which was met with a warning of reciprocal tariffs from the United States.
La European Commission launched “swift and proportionate countermeasures” on US imports, reintroducing balancing measures from 2018 and 2020 and adding a new list of industrial and agricultural goods. The EU countermeasures will apply to exports of US goods worth up to €26 billion, corresponding to the economic scale of the US tariffs. President Donald Trump said the United States will respond to the European Union’s countermeasures against its new 25% tariffs on steel and aluminum, raising the risk of further escalation in its global trade war. “Of course I will respond,” Trump said Wednesday when asked by reporters at the White House if he would respond. “Look, the EU was created to take advantage of the United States.”
It remains to be seen whether Trump's approach to Europe mirrors the push-pull strategy he used with Canada and Mexico, or the tax-and-retax model he applied to China. The good news is that, according to theGerman Institute Kiel, just one ““small fraction” of the products concerned from the EU is exported to the United States. Meanwhile, Britain continues to maintain a relatively low profile, refraining from immediate tariff retaliation but keeping all options open.
Companies around the world are scrambling for cover
In his first weeks in office, Trump has imposed tariffs on approximately $1,4 trillion of imports of goods from Canada, Mexico and China, more than triple the $380 billion in Chinese goods hit by such taxes during his first term, according to estimates by the Tax Foundation. He later delayed and scaled back those threats on Canada and Mexico. But Trump's attempt to reprogram the US economy as a global manufacturing powerhouse it has shaken up the financial markets, scared i consumers still obsessed with pandemic-era inflation and fueled the fears of recession amid growing uncertainty and concern among American companies. Companies around the world they try to take cover in various ways.
For example, the airline Delta and the retail giant Walmart they said the uncertainty will impact their profits. The maker of Ozempic, Novo Nordisk A / S, is planning to produce more medicines in the country for the US market; Boeing Co. risks clogged supply chain and higher costs for aircraft it may not be able to shift; Chinese online retailer Shein Group Ltd. is offering incentives to its major apparel suppliers to set up new production capacity in Vietnam.
In corporate boardrooms, managers are calculating the potential cost of tariffs, his impact on sales, profits and market share. Many companies are implementing “tariff task force” in an attempt to ease the pain of the measures. European auto parts companies Shelf AG , Schaeffler AG and Valeo IF, they said they had no choice but to pass on the higher costs to the consumers.while the tire manufacturer Pirelli & C SpA and the pharmaceutical giant Eli Lilly I am among the many who have committed to increase their production in the United States.
China and Korea stocks fall, Tokyo's Nikkei nearly flat
In the aftermath of tech rebound on Wall Street, Asian stocks are mixed: the index Hang Seng of Hong Kong is down 1,2% today after an 18% surge since Donald Trump took office, becoming one of the world's best stock market performers. The S&P500 index is down about -6% over the same period, trailing most global indicators. The CSI 300 index of Shanghai and Shenzhen -0,5%. Taipei Taiex -1%.
The bag of Tokyo is almost unchanged, the yen strengthens slightly from yesterday against the dollar, at 147,9. President Donald Trump does not like the Japan's high tariffs on rice, which the White House will take action on. “Look at Japan, which has imposed a 700 percent tariff on rice,” U.S. press secretary Karoline Leavitt said at a briefing on Tuesday night. Leavitt showed a chart listing the percentages of tariffs imposed by countries including Japan, India and the EU. “President Trump believes in reciprocity,” the press secretary said. “All he is ultimately asking for is fair and balanced trade practices.” Japanese Trade Minister Yoji Muto ended talks with Commerce Secretary Howard Lutnick earlier this week in an apparently unsuccessful attempt to secure a truce.
Last week the Japanese investors they made the second largest net purchase of foreign stocks all-time high, according to preliminary data from the Ministry of Finance released overnight. Purchases totaled 1,26 trillion yen in the week ended March 7, the most since August 2024, when purchases hit an all-time high. In bonds, Japanese funds dumped a net 355,9 billion yen of foreign bonds. Foreign investors bought a net 686,4 billion yen of Japanese bonds and sold 220,5 billion yen of domestic stocks.
The stock market drops Alone, Kospi index -0,1%. The BSE Sensex index rose slightly Mumbai, .
European stock markets: eyes on Generali and Unicredit
European stock markets are seen opening slightly lower based on the -0,22% indicated by the Eurostoxx50 future)
Generali today posted a record 2024 profit that was in line with expectations, as Chief Executive Philippe Donnet prepares to face a key shareholder vote next month on whether to reappoint him. Italy's top insurer said its adjusted net profit rose 5,4% to 3,77 billion euros ($4,10 billion) last year, while operating profit, a key metric for analysts, rose 8,2% to 7,3 billion euros.
Ferrari “was prepared for the introduction of potential tariffs by the US administration” that would affect European automakers and “is ready to fight back,” the company’s CEO, Benedetto Vigna, told CNBC. “We are watching what happens in the next month, in the next few weeks… we are in the same boat in terms of tariffs,” he added. The tariffs, the American newspaper writes, will have a profound impact on the auto industry, given the high globalization of supply chains and the heavy dependence on manufacturing activities in North America, particularly in Mexico.
Leonardo Jefferies initiates coverage with a Buy rating. Mediobanca lowers its target price.
Recordati La Repubblica reports an analysis by Cerved, according to which US duties could reduce the turnover of the Italian industry by 5 billion in 2025. The sectors most affected would be pharmaceuticals (-Eu750mn) shipbuilding (-Eu280mn), automotive (-Eu200mn), wine (-Eu130mn) and luxury (-Eu560mn). The increase in costs would negatively impact margins, with automotive among the most exposed. The US market is worth 17% of Recordati's total, present with life-saving drugs for rare diseases.
Unicredit. Ivass gives green light to Unicredit's takeover bid for Banco BPM. In detail, a note explains, UniCredit has received the green light from the Insurance Supervisory Institute to acquire - if the offer is successful - indirect controlling interests equal to 100% of the share capital of Banco Bpm Vita and Vera Vita and indirect qualified interests equal to 35% of the share capital of Banco Bpm Assicurazioni and Vera Assicurazioni. The Minister of Economy, Giancarlo Giorgetti, said that the government will use the instrument of golden power in relation to the takeover bid for Banco Bpm in a “reasonable and proportionate” manner.
