Markets are betting on more cautious central banks and closed higher today in Europe, while shares of the banking sector raise their heads globally, from Milan and New York. Wall Street moves in marked progress in the American morning. US consumer prices in February contributed to giving a boost during the day, rising by 0,4% compared to January and 6% on an annual basis, the lowest level since September 2021. It was 6,4% in the month last. L'American inflation Slows, although it remains high and well above the 2% target for the Fed. The puzzle for the central bank next week will therefore not be easy to solve, even if the markets seem to regain some optimism.
Europe in dust, with Milan at the top
Business Square, which yesterday was the worst due to the weight of the banking sector on the Ftse Mib, today returns to the podium for the same reason and closes with a gain of 2,36%, returning to 26.800 basis points. The stocks of credit institutions, which suffered massive losses in the previous session, resume the scene from Unicredit +4,2%, despite the bad moods on the salary for CEO Andrea Orcel to be approved at the meeting. Among the titles in evidence there is Generali +3,62%, after the best operating result ever and the announcement of a dividend up by 8,4% to 1,16 euro per share. Industrial stocks such as Interpump shine, +4,35%, best blue chip of the day.
The clearing is also wide a Frankfurt + 1,82% Paris + 1,86% Madrid + 2,27% Amsterdam + 1,41% London +1,21%. Stay a little behind Zurich, +0,81%, where Credit Suisse (-0,62%) is struggling to participate in the general banquet after announcing, in the annual report for 2022, that "customer outflows have stabilized at much lower levels, but have not yet reversed". The bonds of the Swiss bank have come to yield 30%.
Wall Street rallies with banks, despite Moody's
Moody's cut US banking outlook from 'stable' to 'negative' due to 'rapidly deteriorating operating environment', but Wall Street doesn't seem too concerned about the downturn and shows sizeable gains also thanks to banks' rebound . Thus the panic caused by the contagion effect subsides and the First Republic Bank (+58,81%), rises from the abyss into which it fell yesterday. It is currently the best stock in the S&P 500 (+1,95%).
Sul Nasdaq (+2,33%) is in light MetaPlatforms, +5,96%, which has cut announced another ten thousand jobs. The holding company of Facebook, WhatsApp and Instagram had already cut more than 11 jobs in November, equal to about 13% of its employees. Since the beginning of the year, Meta shares have gained almost 60% and have recovered the losses accumulated in the previous months.
Waiting for the central banks. T-bond prices go down and rates go up
The guiding star for investors remains the monetary policy of central banks and the bankruptcy of US regional banks, seen in recent days, could induce greater caution in the pace of rate hikes. In particular, the Fed, next week, could limit itself to a hike of 25 basis points or could even remain unchanged, while last week the market was betting on a hike of 50 basis points. Futures today call for a rate cut later this year, with the terminal rate at 4,45% in December, down from over 5% last week.
Certainly the puzzle to be solved for Jerome Powell it's not easy, because inflation remains high, as February consumer prices showed today.
I T-bond prices in fact today they are going down, after yesterday's surge and rates are going up again. The yield on the ten-year bond is around 3,64% and that of the two-year bond, which yesterday recorded the greatest drop in 36 years, currently stands at 4,33%.
On the foreign exchange market, the dollar. THE'euro it trades just below yesterday's levels and is confirmed above 1,07.
In a context of uncertainty the remains negative Petroleum, with Brent and WTI futures down around 1,5%.
Rush the gas in Amsterdam, which loses almost 10% and returns to 44,73 euros per MWh.
Spreads down, yields up
The mood is wait-and-see for European bonds ahead of Thursday's ECB meeting. The spread between 10-year BTPs and Bunds of the same duration closed at 177 basis points (-2,26%), with yields indicated on the rise for both securities, at +4,2% and +2,42% respectively.
Rates in Italy also rose in the medium-long term auction of the Treasury. The new three-year benchmark BTP was assigned with a gross rate of 3,71%, an increase of 34 basis points compared to the previous auction which represents the new high since September 2012. The 7-year BTP at 3,98%, increase of 18 basis points compared to the previous auction. The Treasury also offered the Green BTP maturing in 2035 assigned with a gross yield of 4,4% while the 50-year BTP, in the second tranche, recorded a rate of 4,2%.
Piazza Affari in full swing with Generali and Tod's
To give some sparkle to Business Square the corporate results beyond expectations of two prestigious brands such as Generali e Tod’s.
The shares of the Lion, which are part of the blue chips, were rewarded by Banca Akros, which brought the target price to 20,5 euros from 18,5, remaining 'Accumulated', and increased the estimates of Eps 2023-24 around 6,5% on average.
Outside the main list, however, Tod's appreciates by 7,02%, after 2022 results beyond expectations and forecasts improving.
The rally in the stock was the driving force for the entire luxury sector and it came to light on the Ftse Mib Moncler + 3,95%.
The big banks have reared their heads, starting with Unicredit e Understanding + 3,35%.
In the Interpump industry well, Iveco + 3,57% stm + 3,35% Amplifon + 3,27% Leonardo + 2,95%.
Utilities continue to be a good bulwark in this volatile phase: A2a + 3,29% Enel +2,33%. Well Italgas, +1,13%, he announced the exclusive with Veolia for some acquisitions in the water sector in central and southern Italy.
Also good Telecom, +2,15%. According to Reuters sources, the company will ask CDP and the Australian fund Macquarie to improve the offer, considered low, for fixed network assets. According to the same sources, the joint offer would value Tim's network at around 18 billion euros, including debt. The US fund Kkr, which already owns a minority stake in the Tim network, has instead offered up to 20 billion euros, including an earn-out mechanism of 2 billion euros.
The only big cap down slightly is Diasorin, -0,28%.
