Cars and raw materials send the European stock markets into the red e Milano, with its -1,1% to 27.627 basis points is the worst market on the Old Continent. At the end of the day, all major European exchanges closed in negative: Frankfurt -0,6% Madrid -0,5% Paris -0,2%. Flat Amsterdam e London.
It moves below the lows of the day Wall Street where the sales hit Nasdaq (-0,4%), Dow Jones (-0,2%) And S & P 500 (-0,45%) with investors worried by the decline in profits and by the below-expected data highlighted by the latest quarterly reports published. Furthermore, another US interest rate hike remains on the horizon to fight inflation – which continues to persist across the globe – despite lackluster economic data.
From a macro perspective, data on new weekly claims for unemployment benefits were also published in the early afternoon, up by 5.000 to 245.000, against expectations for 240.000. The Philadelphia Fed manufacturing index continues to fall, now at -31,3.
Tesla sinks the auto sector
The auto sector is in free fall all over the world, with the Euro Stoxx 600 Auto marking -3,5% after the accounts of Tesla (-9%) which showed a strong erosion of margins after the price cuts of several models established by the company. Under pressure too Renault (-7,97%): in the first quarter, the group's worldwide sales amounted to 535.000 vehicles, an increase of 14,1% compared to the first three months of 2022. In Europe, sales grew by 27,3% in a market growing by 16,2%. Group revenues stood at 11,5 billion euros, +29,9% compared to the first quarter of 2022.
Sales hit all industry giants, from Volkswagen (-3%) a bmw (-3,62%). In Milan stellantis it is the worst stock in the Ftse Mib with a drop of 5,41%. The reaction, both disorganized and surprised by investors, also weighs on the title change of financial director, with the surprise departure of Richard Palmer, one of the architects of the merger with PSA, who plans to leave the group on June 30, 2023. Natalie Knight, current CFO of Ahold Delhaize, will take his place.
Down too Pirelli (-2,4%). Instead, it saves Iveco (+ 1,57%).
In Piazza Affari Tim is still in the spotlight, the banks are negative
In Milan, attention is catalyzed once again on Tim, after the assembly that gave the green light to the 2022 budget but has the managers' remuneration policy was rejected with abstentions. After the -8,3% recorded yesterday, Telecom Italia shares lost 1,57% today. The balance of the two days is close to -10% with the shares plunged to 0,2814 euros. Rumors also weigh heavily, completely improbable, according to which Vivendi (+0,57%) could launch a takeover bid to absorb the losses of its disastrous Italian campaign.
Sales hit stmicroelectronics (-3,74%) after the cautious forecasts of the giant TSMC for the second quarter of this year.
In the financial sector they closed in negative Ps (-3,62%), Finecobank (-2,95%), Unicredit (-1,77%), Banca Mediolanum (-1,34%). Also in red Bpm bank (-1%) on the day in which the shareholders' meeting approved the 2022 financial statements, which closed with a consolidated net profit of 703 million, and the distribution of a dividend of 0,23 euros per share. The shareholders elected the members of the board who will remain in office until 2025, confirming Massimo Tononi and Giuseppe Castagna in the roles of president and managing director respectively. Resists Bper (+ 0,94%).
Outside the Ftse Mib limits damage (-0,5%) Bank Ifis, with the shareholders' meeting giving the green light to the 2022 budget for a dividend of 0,40 euros, while approving the appointment of the founder, Sebastien Egon Furstenberg, as honorary chairman for an indefinite period. The current president of Banca Ifis, Ernesto Furstenberg Fassio, has announced that the coupon policy will be reviewed in an expansive key.
Moving on to the sweeter notes of the day, there is one of the best stocks on the main list, in addition to Iveco Saipem, which closed at +1,49% after positive quarterly accounts and despite the drop in oil prices. Well too Moncler (+1,52%) and utilities: Terna (+ 0,96%), Enel (+ 0,53%).
Lagarde: "Inflation still too high"
"Inflation is still too high and it has been for too long and our monetary policy must use all the tools at its disposal to bring it back to the 2% objective in the medium term”, said the ECB president Christine Lagarde speaking at a meeting with students organized by the Ecole Polytechnique in Paris. The number one of the Eurotower added: "During the pandemic the rules on state aid were suspended and the stability and growth pact which provided for a deficit limit of 3% and a debt limit of 60% of GDP. For us it is imperative to return to a framework of rules”.
The Governor of Bank of Italy has also returned to talking about rates, Ignazio Visco, reiterating the importance of moderate any salary demands to offset the effects of inflation. In a speech at the French Embassy, Visco underlined how "inappropriate behavior and choices, even at the level of individual member countries, could trigger inflationary pressures and spirals which would require a significant tightening of the monetary policy stance, making it more difficult and costly to achieve price stability”. According to Visco, however, a "coordinated commitment of all the actors involved - families, businesses, financial intermediaries, national governments - is needed a more economically integrated Europe and equipped with adequate intervention tools at a central level would help to ensure".
Visco then highlighted the need to “start from the initiatives launched with the pandemic and transform them into an organic design of completion of the monetary union. In addition to perfecting the banking union, we need to resume the discussion on the possibility of introducing a capacity of common budget capable of supporting monetary policy in the task of making the euro area more resilient”. “This would make it possible – he specified – to reconcile the full exercise of the stabilization function with the balance of the public finances in each country. Finally, according to the Governor, “the introduction of a common public debt security, which in the future could also replace a part of the national bonds in circulation and play the role of safe asset assigned to government bonds in the other main economies, would also serve to speed up the process towards the capital market union, which in turn it would facilitate companies' access to finance”.
The other markets
In sharp decline Petroleum, with the prices of Wti (77,4 dollars) and Brent (81,2 dollars) dropping by more than two percentage points. US oil inventories fell more than expected last week. Recorded a fall of 4,581 million barrels to 465,968 million units, according to data released by the Department of Energy, against expectations for a fall of 0,5 million barrels.
Salt it instead spread (+0,89%), which stands at 186 basis points, with the yield on the Italian ten-year bond at 4,305%. Stable above 40 euros the price of gas.
