The leap year in store for us the surreal spectacle of the curfew in New York, the day after the invasion of protesters in the gardens of the White House, the occasion of an electoral commercial for Donald Trump. But the novelty slows down the bull run which, on the contrary, accelerates thanks to the reopening of activities around the planet, including Italy. The markets are betting on a recovery in activity by the end of July. In the meantime, the rain of liquidity compensates for the devastating numbers of the economic situation and brings the markets back to the levels of March, when the world discovered the meaning of hitherto unknown words: Covid-19, lockdown and so on. Against this backdrop, the markets are approaching the key events of the week: tomorrow's ECB directorate, an opportunity for a new round of support; US labor market data on Friday, which should signal a slowdown in new jobless numbers. Meanwhile, the rally continues.
TOKYO IN THE RALLY, NEW AID IN KOREA
Asian stock exchanges advance solidly. The Asia Pacific index (+1,3%) returned to the levels of March 9th. Shanghai rose (+0,4%) on the wave of data on orders from the industry in a comforting recovery, as did the Hang Seng in Hong Kong.
Tokyo is doing better (+1,2%), back to February levels before the pandemic alarm. The Korean Kospi is even running (+2,5%) after the South Korean Finance Ministry announced a new round of economic stimulus, the third since the beginning of the year. The government intends to increase state debt by issuing new loans for a total of 23.800 billion won (19 billion dollars): the package of measures, which will be presented in the next few hours in parliament, is worth 35.000 billion won. The currency of Korea, one of the developed countries with the lowest debt/GDP ratio, strengthened against the dollar at 1.1217.
Sydney is on positive ground, despite the drop in GDP (-0,3%) in the quarter, which marks Australia's official entry into recession, after 29 years of uninterrupted growth.
US FUTURES RISE, OIL ABOVE 40 DOLLARS
Even Wall Street, for now ignored by protests and looting, has taken off, despite the fact that the fashion newspaper, WWD, has written that the crisis threatens to blow up the sale of Tiffany to Lvmh.
The main indices are up: S&P500 +0,82%, Dow Jones +1,05%. The Nasdaq is also up: +0,59%.
The recovery of oil continues. Brent this morning crossed the threshold of 40 dollars a barrel for the first time in three months on expectations of an extension of the cuts by OPEC+. Producers are considering extending output cuts set at 9,7 million barrels per day, which is equivalent to 10% of global production, through July or August. The decision will be made at an online summit likely to take place on June 4.
EURO SUPERSTAR WAITING FOR THE ECB
The European Stock Exchanges, supported by the expectation of the ECB's interventions, were the great protagonists of yesterday's session. The euro hit a new eleven-week high against the dollar. This morning the cross with the US currency is 1,120.
Tomorrow the ECB is expected to announce an expansion of the bond purchase plan by at least 500 billion euros, having already spent around a third of the emergency allocation announced in March (750 billion euros). In this context, the Italian Treasury unexpectedly announced yesterday that it will issue a new 10-year BTP: the placement, scheduled for today, will be managed by a pool of banks.
The EuroStoxx 50 index recorded a rise of 3,5%.
THE DAX BREAKS THRESHOLD OF 12 THOUSAND POINTS THANKS TO THE CAR
Frankfurt's Dax did even better, +3,7% when it reopened after the Pentecost holiday. During the session, the Dax broke through the psychological threshold of 12 points for the first time since March 5th.
The rumors about a bonus program (5 billion) for car purchases give the charge: Volkswagen, Daimler and BMW are trading up between 6,1% and 9,6%. Lufthansa is up 5,88% after its supervisory board approved a 9 billion euro government bailout yesterday. Deutsche Bank +5%.
BUSINESS PLACE AT EARLY MARCH LEVELS
Piazza Affari returns to touch 19 points (18.971) and rises by 2,42%, to levels not seen since the beginning of March.
Paris (+2,02%) and Madrid (+2,56%) are also on positive ground. F 1 rises by 6,7% after the agreement with the Spanish Mediapro for the birth of Telefoot for the rebroadcasting of Ligue 1 matches.
London is more cautious (+0,89%). Boris Johnson and Ursula von der Leyen will meet in person to unblock the negotiations on post-Brexit relations.
SPTEAD BOUNCES TO 195
In a session with thin volumes due to the June 2 holiday, Italian government bonds closed lower. The Italy-Germany spread on the ten-year segment widened up to 195 basis points (from 185 at the previous closure). The 1,52-year rate rose to 1,46% (from XNUMX% yesterday).
OILS LEAD THE RACE. ORDER IN FRANCE FOR SAIPEM
Oil companies rallied yesterday: Eni (+5%) and Tenaris (+4%) were the two best blue chips in Piazza Affari. Saipem (+1,36%), in consortium with Bouygues Travaux Publics and Boskalis, was awarded the design, construction and installation work of 71 structures for the Fecamp offshore wind farm in Normandy.
TECH INDEX EXCEEDS JANUARY LEVELS. STM +3,3%
The only stock down in the main basket was Diasorin (-1,4%).
Stm advances (+3,3%). The Stoxx index of the European technology sector gained 1,7% and reaches 532 points, eliminating the losses accumulated since the beginning of the year.
It is the second sector to succeed in the enterprise, after the Stoxx Healthcare index (+2,5% since the beginning of the year) which had wiped out its losses in April. The global Stoxx index has so far recorded a loss of 15%. From the lows of the year, the technology index rebounded by around +50%.
The third best sector at European level, close to zeroing its annual losses, is that of the Utilities, still in the red by 4%.
THE FEVER RISES AT MEDIOBANCA/GENERALI
The banking sector is still in turmoil. Mediobanca +3,8%: the ECB will authorize shareholder Leonardo Del Vecchio to increase the stake by the end of August.
In the meantime, the king of eyewear also accelerates on Generali (+3,5%) with the aim of rising from the current 4,7% to 8%. Other key Italian shareholders, including Caltagirone, want to grow in capital, in order to reach around 20% and thus make their voice heard at the time of important decisions, especially as regards acquisitions.
Unicredit (+2%), Intesa Sanpaolo (+3%) and Banco Bpm (+3%) also rose.
THE PININFARINA ELETTRICA STARTS IN VIETNAM
Fiat Chrysler +2,5%. In May, car registrations in Italy fell by 49%, in Spain by 73%. Worse than the market, in both countries, the FCA group. Pirelli +1,4%
Pininfarina +7,7% after +25% on Monday. The Vietnamese car manufacturer VinFast will begin large-scale production of the first electric car models next year with a focus on the US market, with the design entrusted to the Turin-based company.
Still on Leonardo (+4,36%) and Cnh Industrial (+3,72%).
Atlantic +1,3%. According to rumors, the government intends to postpone the summit in which a decision will be made on Autostrade per l'Italia.
Nexi +1,7%. The government intends to keep control over the digital payments area, in order to avoid the arrival of unwelcome foreign subjects.
INTERPUMP AND INWIT TOWARDS THE MAIN BASKET
Interpump (+5,2%) could enter the Ftse Mib index with the revision that will be announced tomorrow. Another candidate is Inwit (+2,52%).
Safilo (+5,11%) completed the closing of the acquisition of 70% of the share capital of the Californian company Blenders Eyewear.
Among the mid Caps, Oviesse +7,72%, Technogym +6,23% and Enav +5,75%. Banca Ifis on the rise (+3,41%), in the wake of the positive assessments of analysts after the institute completed the competitive process for the purchase of 70,77% of the capital of Farbanca held by Banca Popolare di Vicenza. Equita Sim confirmed the buy rating and target price of 12,1 euro on the stock.
