And five. The S&P500 index scored the fifth consecutive high on Wednesday evening, the thirty-fourth record of 2021. In the wake of the numbers on the main US list, the Bull is confidently awaiting the employment data whose first reading will arrive in the afternoon. Such euphoria does not suit the Asian stock markets which closed the first half on the sly: since January the gain in the Asia Pacific area is 5,8% against 14,7% for the MSCI global index. Xi Jinping's speech for the opening of the celebrations for the centenary of the party does not lead to optimism: once the war on poverty has been won, the president said, now we must build a socialist society. In the meantime, however, we are ready to "crush" those who want to meddle in our affairs. Meanwhile, with the exception of South Korea, the recovery slows down as the pressure of the delta variant increases:
CHINESE PMI HOLDS BACK: IT'S THE FIRST TIME AFTER 13 MONTHS
Contrasted start of the third quarter for the Asian stock exchanges: the Nikkei of Tokyo loses 0,3%, the Hang Seng of Hong Kong 0,6% and the CSI 300 of the stock exchanges of Shanghai and Shenzen 0,1% and the Kospi of Seoul 0,2%. On parity the BSE Sensex of Mumbai.
The spread of the variants of the epidemic weighs heavily. The Caixin IHS Markit index on expectations of small and medium-sized manufacturing companies in China recorded its first decline in June after 13 consecutive months of increases, falling to 51,3 from 52: the consensus was 51,9.
ONLY SOUTH KOREAN EXPORTS SHINE +40%
Markit's manufacturing PMIs for Malaysia and Vietnam fell to year-to-date lows, as economic activity in Taiwan also fell sharply. No signs of weakness from South Korea, where the PMI index has further improved and exports have risen by 40% year on year, against +34% of forecasts.
DOLLAR HIGHS VS YEN, OIL LIVE
- Wall Street futures are flat this morning. Yesterday the Dow closed +0,61%, the S&P +0,13%. The Nasdaq is down -0,17%.
- In the last three months, the S&P has risen by 8,2% (+14,5% since January, the second best result since 1998.
- In great evidence Wal-Mart + 2,7% after the green light for the sale of insulin.
- The dollar climbs to new highs against the yen.
- the ten-year Treasury Note is hovering below 1,50% yield and also the rate curve, measured by the differential between two years and ten years, has not moved compared to yesterday, at 122 basis points.
- Gold regains strength, at 1.774 dollars an ounce.
- WTI oil at 73,7 dollars a barrel. Reuters writes that OPEC+ is considering the possibility of postponing the return to a pre-pandemic level of production to beyond April 2022.
TRUMP INCRIMINATED BY MANHATTAN JUDGE
The Manhattan court is expected today to indict the Trump Organization and its chief financial officer Allen Weisselberg for tax crimes. Among the violations are a series of benefits to top managers, such as apartments, cars and school fees
SHARES, FIFTH QUARTER OF GAINS FOR THE BULL
The world stock exchanges completed the fifth positive quarter in a row with a partial 6%: such a long streak has not occurred since the beginning of 2015, when there were six positive quarters.
The performance since the beginning of the year has widened to +11,70%. Since the beginning of the year, practically all the main stocks that make up the MSCI World Europe index have risen and Wall Street has dominated the scene with double-digit gains. The FtseMib index of Piazza Affari is around +14%.
Among the rare exceptions, with negative performances since January XNUMXst, there are only minor markets, which impact little or nothing on the total performance. In Asia: New Zealand, Malaysia, Philippines, in America: Chile, Peru, Colombia and in Europe Portugal, Turkey.
Japan is not participating in the rally, almost unchanged. And neither does China, with a timid rise of +4,50%.
EUROPE, INFLATION UNDER CONTROL: EXCHANGES AT FULL SPEED
Weak stock exchanges yesterday at the halfway point of mid-2021. Predictably due to the need for managers to rebalance portfolios after a brilliant semester for the stock market but disappointing for bonds. Fears about the diffusion of the Delta variant on the eve of the introduction of the green pass also weighed. Confidence in the near future was restored by Eurostat's flash estimate on inflation: +1,9% the trend, lower than the May figure (+2%) and in line with expectations. European inflation stabilized in June and the initial price spike has eased. – comments Ben Laidler of eToro- This reduces the pressure on the European Central Bank (ECB) and supports the continuous rise in European equities.” As a result, we don't expect to see the ECB hike rates anytime soon or start to roll back its Pandemic Emergency Program (PEPP), which hit its highest level of purchases in a year last week. . All of this should support the prospects for further strength in European equities, which we see benefiting from the strong economic rebound, cyclical industry focus and discounted valuations”.
MILAN -1,01%, CONFINDUSTRIA: THE RECOVERY GETTING SPEED UP
- At the close, Milan lost one percentage point (-1,01%) stopping at 25.102 points.
- The phase of growth in industrial production prices continued in May, according to the data released on Wednesday by Istat: +1% on a monthly basis and +8% on an annual basis. In April, the increases were respectively 1,3% and 6,8%. On an annual basis, “the strong trend increases in the prices of energy products and metallurgy and metal products” contribute to the acceleration, notes Istat.
- According to the Confindustria Study Center, the acceleration of the vaccination campaign combined with the ongoing consolidation of industrial activity means that the Italian GDP is in a decisive recovery already in the second quarter, exceeding the expectations of a few months ago. Experts are convinced that the recovery will strengthen in the third and fourth quarters of 2021.
GRAND VISION FLYES +13,8% AFTER THE ESSILORLUXOTTICA BLITZ
- Similar discounts for Frankfurt -1%, Madrid -1,08% and Paris -0,9%. Amsterdam -0,64% and London -0,67% do slightly better. The half-yearly balance is in any case positive and double-digit percentage for almost all the lists.
- Fly Grand Vision +13,8% after EssilorLuxottica decided to proceed with the acquisition expected under the same pre-pandemic conditions. EssilorLuxottica shares rose by 1,2%.
SPREAD FALLS, BTP YIELDS FALL AT AUCTION
- The 5-year BTP slips to +0,12%.
- The secondary sector did well: the spread between ten-year BTPs and Bunds of the same duration fell to 107 basis points and the rate on the Italian bond closed down at +0,82% - 4 basis points.
- On the primary side, demand for BTPs was good in the morning and yields were down. The Treasury issued the ninth tranche of the 5-year BTP for 3 billion with a yield down 5 cents to 0,12%. The eleventh tranche of the 10-year BTP was also placed: against requests for 2,332 billion, the amount issued was 1,5 billion while the yield stood at 1,56%. The ten-year BTP expiring on 01/04/2031 has also reopened: the twelfth tranche, assigned for 1,5 billion against a total demand of 2,348 billion, achieved a gross yield of 0,81 percent.
JUVE ASKS FOR 400 MILLION: DISTURBED WATER IN THE STOCK EXCHANGE
On the eve of Italy-Belgium on the Wembley ground, football breaks into the electronic circuits of Piazza Affari today. The board of directors of Juventus yesterday approved a capital increase of 400 million euros. During the same meeting Maurizio Arrivabene's arrival from Ferrari was announced with all the responsibilities of the sports area. The operation explains a press release, "will serve to deal with the overall economic impact of the direct and indirect negative effects of the pandemic in the years between 2019/22 currently estimated at 320 million euros". Exor will cover the transaction on a pro-rata basis (for 63.12% of the share capital). A sharp drop in the stock market is likely today, but the club has strong shoulders, fans and financial allies (see Banca Imi). CEO Arrivabene, moreover, sounds like a guarantee of more rigorous management.
COOPs BUY ONLY 1% OF UNIPOL
On a day of generalized declines for all price lists, Unipol shares stood out against the trend +6,37% after Koru launched a purchase operation of up to 24 million ordinary shares, equal to around 3,35% of the share capital social responsibility of the group with the undeclared objective of achieving a merger with UnipolSai (+2,96%). For now the Coops have acquired the 1% offer.
GENERAL ASSETS AND EXOR. YOU SAVE BPER
Rises also for Generali +0,57%: Jp Morgan raised its recommendation from neutral to overweight, with a target price from 18 to 21 euros.
Exor +1,17% is in positive territory. Among the banks, Bper is saved +0,36%.
In red, in practice, all the other blue chips. Enel slows down -2,37% despite Mediobanca Securities confirming the outperform recommendation on the stock and the target price of 9,1 euros.
Asset management retraces: Banca Mediolanum loses 2,43%, Azimut 2,2% and Banca Generali 1,34%.
On the banking front, Unicredit -1,52% and Intesa Sanpaolo -1,34% suffer. Also sales on utilities.
Mediaset +1,4%. The company has signed a multi-year agreement with Tim for the non-exclusive distribution of the Mediaset Infinity app on the Timvision platform. The share closed today's session in Piazza Affari with an increase of 1,4% to 3,044 euros.
TRAVOLTA SAFILO, BLACKSTONE ASKS RCS FOR 600 MILLION
Heavy drop for Safilo -13,88% after the announcement of the forthcoming capital increase of 135 million aimed at repaying the loan to shareholder Hal and seizing "new growth opportunities" also via mergers.
RCS -0,84%. The Blackstone fund has asked the Milanese publishing group and Cairo Communication, Urbano Cairo's company, for 600 million dollars. The private US has decided to bring together in a single action before the Supreme Court of New York the lawsuits for damages related to the failure to resell the property in via Solferino to Allianz.
On the Aim, Labomar shone +6,07% after the acquisition of 70% of the Welcare Group, active in the production of skin care products.
