The quarter shines, but the last session of the European lists is opaque, despite the trillion dollar investment missile that will soon be launched by President Joe Biden and which will remain in orbit for the next eight years. Wall Street appreciates and trades higher. Tech stocks were up about 1%, while financials and energy stocks fell, in a reversal from what we've seen this quarter. Piazza Affari closes the session flat (+0,05%), supported by stocks that can benefit from the US plan, but weighed down by Pirelli -3,55% and banks.
In the rest of Europe Frankfurt (+0,02%) consolidates the record positions reached yesterday, while Paris loses 0,34% waiting to know the decisions of President Macron to stem the infections of Sars-Cov-2 in France. London wears the black shirt, -0,83%, on the day of Deliveroo's disastrous debut on the Stock Exchange. The popular home food delivery company lost 26,30% after lowering its placement claims to a fork low. What would be scary would be the uproar raised by the struggles over raider rights and the capital structure, with two share classes.
The decline in Zurich continues, -0,61% where Credit Swiss remains knocked out (-4,93%) due to fears of losses related to Archegos, the US fund which went into default, sending a part of the banking sector into a tailspin.
Meanwhile, inflation rose in March in the euro area, above all due to the increase in energy prices: +1,3% after +0,9% in February. A leap foreseen by the ECB, which had warned of the possibility that inflation could exceed the target by the end of the year, simultaneously ensuring that it would not intervene on the peak, considered temporary. In fact, underlying inflation, which is held in greater consideration by the ECB in its monetary policy choices, slowed down in March, in contrast to market expectations which expected a stable trend.
Also in Italy, inflation confirmed its growth for the third consecutive month, returning to the levels of May 2019. According to the provisional data released today by Istat, the increases are 0,3% per month and 0,8% per year.
Overseas, Wall Street is proceeding in tune, even if the close of the first quarter can bring volatility, as investors adjust their portfolios. At the moment, the Nasdaq, the technology index that has suffered the most in this phase, is rebounding, with Treasury rates rising and the prospects for economic recovery that reward cyclical stocks more. Today the tension on government bonds is slightly easing, with the 1,7-year interest rate slightly decreasing compared to the levels reached yesterday (but always remaining above +XNUMX%).
Meanwhile, the White House anticipated Biden's speech, which will announce 2 trillion dollars of investments in infrastructure (620 billion in transport) over eight years, in a plan that will create "millions" of jobs. However, this is only the appetizer which will be followed by a second intervention - expected in April - which according to the reconstruction of the WSJ will concern training, education, childcare services. To finance the plan, corporate taxation will rise: the rate will go from 21 to 28%.
In terms of employment, the data released today by ADP on employment in the private sector in March is very positive, the best since September with the creation of 517.000 new jobs. The dollar loses slightly positions, compared to the peaks reached in recent sessions. The euro takes advantage of this by trading slightly higher, but moves below the 1,18 level. In any case, the greenback learned to close the best quarter since June 2018. Bounce gold, with the June 2021 contract up 1,4% to $1,710 an ounce. Oil is slow moving. Brent is trading at around $64,20 a barrel, worried by the fact that OPEC+ has reduced its demand growth forecasts for 2021, but supported by the increase in manufacturing activity in China.
The session in Piazza Affari looks in part to the USA. Mediobanca analysts point out that 'acceleration of investments in renewable energies in the United States would support Enel and Prysmian', which today appreciate by 0,71% and 1,99% respectively. The additional investments linked to the renewal of existing public infrastructures (roads, bridges and dams) should reward Buzzi Unicem (+1,88%) and Interpump (+0,66%). The session is also tonic for Stm, +1,85%, Ferrari +1,8%, Nexi +1,67%. Among the oil stocks, Eni appreciates +0,79%, while Saras sinks (-7,22%).
At the bottom of the list Pirelli, which closed 2020 with a consolidated net profit of 42,7 million (457,7 million as at 31 December 2019) and a net profit of the parent company of 44 million (273,2 million as at 31 December 2019) and will propose to the shareholders' meeting of the shareholders, convened on 15 June, the distribution of a dividend of 0,08 euro per share. In the industrial plan, the company aims to "recover pre-covid 2019 values to 2022" and to become "leader in high value specialties with high cash generation" by 2025.
Banks in decline, starting from the counter Bpm -2,48%, Mediobanca -1,99%, Unicredit -1,4%. Profits taken on Cnh -2,01% and Leonardo -1,65%. On the secondary side, the spread between the Italian and German ten-year bonds closed slightly down at 95 basis points and the BTP recorded a rate of +0,66%.
