US GDP in the first quarter slows more than expected, while inflation remains strong, but a deluge of quarterly earnings (largely better than expected) today allows European markets to close just far from the water line, while Wall Street (Nasdaq +1,6%) moves in tune with Meta Platforms (+14%) in orbit following the accounts shown last night. It also goes back uphill First Republic Bank +10% after the crash of the last two sessions.
Business Square it appreciates by 0,19% to 27.158 basis points, in equilibrium between the rebound of the banks and the collapse of stm (-8,72) and Tenaris (-3,57%) after the accounts. The Milanese price list, on the other hand, did not react to the fact that the Meloni government found itself today without a majority in the Chamber in the vote on the budget variance.
In the rest of Europe it is colourless Frankfurt, back off London -0,27%, while they rise slightly Paris + 0,23% Amsterdam +0,4% and Madrid + 0,21%.
In particular, the European banking sector has regained some optimism thanks to the quarterly results of Deutsche Bank (+ 1,94%) and Barclays (+5,32%) which positively surprised analysts.
On the currency market the dollar, which showed some weakness in the European morning, changed mood after the macroeconomic data and is currently in progress against the major currencies. L'EUR trades slightly down and maintains an exchange rate above 1,1.
It fails to redeem itself from recent losses the Petroleum, alarmed by the trend of the stars and stripes economy, Brent and Wti are moving around yesterday's values. It is confirmed just above 38 euros the natural gas in Amsterdam.
US GDP slows down
US economic growth is lagging behind, but markets are not frowning too much, waiting for the Fed to weigh the macroeconomic picture next week to decide how much to raise rates further.
In the first quarter of 2023 the US GDP it increased at the annualized rate of 1,1% compared to the previous three months, after +2,6% in the fourth quarter of 2022, against expectations for a 2% increase.
Il PCE data on inflation in the same period it instead shows a growth of 4,2% (from 3,7% in the previous quarter) and the core figure, that net of the more volatile elements (energy and food), rises to 4,9% from 4,4 %, against expectations for 4,7%.
This will be enough to convince the bankers led by Jerome Powell to put an end to the impressive cycle of hikes seen so far? At the moment, expectations are still for an increase of another 25 basis points at the May meeting, but this could be the last piece of a tightening that has led the Fed to raise its official rate by 475 basis points since March last year. from near zero to the current 4,75%-5,00% range.
On the other hand, although the picture is worse than hoped, several American economists believe that it can avoid a recession. In fact, fears of an economic reverse are driving down the prices of raw materials such as oil and this could help reduce the cost pressure for companies and favor the general economy.
Work also sends signals of strength: weekly jobless claims in fact, they decreased by 16.000 units to 230.000, seasonally adjusted figure, for the week ended April 22nd. Economists had expected 248.000 inquiries in the past week.
Piazza Affari, week in swing for the banks
The banks of Piazza Affari raise their heads after the losses of recent days. The best is mps, +4,35%, followed by Bper +4%. A heavyweight such as Unicredit +3,54%, with the news on the green light for the early repayment of the 1 billion AT1,25 bond, as the bank led by Andrea Orcel underlines that it does not need to issue instruments of this category in the future and this is a good message reassuring.
Also good Bpm bank +2,59% and Understanding + 0,99%.
Outside the credit sector they shine Recordati + 3,22% Ivy + 3,33% Telecom + 2,63%.
Bene Enel, +1,23%. Goldman Sachs recommends buying the shares of the electric giant, for which it indicates a price target of 7,15 euros.
The "red" list of blue chips starts from Stm, despite first quarter data being better than expected (profit up 39,8% to $1,04 billion and gross margin at 49,7%), as were guidance for the second quarter. However, the results of Samsung (with net income down 86%) and prospects for a slowdown in semiconductor demand.
Sales in the oil sector are also felt on the list: with Tenaris, they move back Eni -1,92% and Saipem —1,03%. The short list of declining big caps ends with Cnh -0,16% and Ferrari -0,12%.
Out of the main basket it goes down there Juventus -3,45%, eliminated from the Italian Cup after last night's defeat against Inter in the second leg of the national competition.
Spreads and rates on the rise
The European bond also closes in the red and appears little moved spread between Italian and German paper, closed at 189 basis points (+0,42%).
I go up rates respectively at 4,34% for the ten-year BTP and 2,45% for the Bund with the same duration.
