If before it was interest for the technology now it's a real wild ride: from Wall Street atAsia it's a whole series of increases in companies in the sector, with Oracle infrastructures which has led the way, one step away from entering the exclusive club of companies with a market capitalization of 1 trillion. Today, a key figure for the US is expected on consumer prices, but already yesterday those in production highlighted that the feared inflationary pressures do not appear to be there, thus confirming the expectation of a Fed rate cut next week. Europe in silence, still shaken by the Russian drone attack yesterday and by the political events in France, while the conference this morning is pending Christine Lagarde of the ECB which is not expected to move rates, but the trade outlook and political concerns mean it is likely to keep alive the prospect of a subsequent loosening.
Wall Street was euphoric yesterday: the risk of inflation seems to have passed. Everything is being bet on AI.
The US stock markets yesterday decreed a situation that was unexpected until a few weeks ago: the much feared there doesn't seem to be any inflationary pressure and then the road to a rate cut on the part of the Fed has become a highway.
The index of the producer prices It fell yesterday for the first time in four months, dropping 4% in August compared to the previous month, and the July figure was revised downward. Compared to the previous year, it increased by 0,1%. Economists pay close attention to the producer price index because some components are used to calculate the Fed's preferred inflation gauge.
La market reaction It was immediate and the operators almost completely discounted it three rate cuts in 2025, although in reality, confirmation is still needed from consumer price data today. The Fed will issue its decision on September 17th.
The index S & P 500 yesterday reached new all-time highs, choosing the sector ofartificial intelligence as the favorite, riding the excellent forecasts of Oracle infrastructures Corp. in cloud which sent shares soaring 36%, posting the biggest daily percentage gain since 1992.
Oracle's forecast came after a brief period in which investors questioned the sustainability of artificial intelligence's explosive growth and abandoned some of the industry's largest companies. But interest revived yesterday, with other AI winners such as Broadcom Inc., Palantir Technologies Inc., Advanced Micro Devices Inc. and Nvidia which have climbed the rankings together with Oracle. Also noteworthy is the 9% jump in Arm Holding. The chipmaker wants to expand in Southeast Asia, its chief commercial officer said at the Wall Street Journal. Meanwhile OpenAI he signed a ccontract with Oracle to purchase $300 billion in computing power in about 5 years, a huge commitment that far exceeds the startup's current turnover, according to the Wall Street Journal. This is one of the largest cloud contracts ever signed.
Yesterday the S&P500 rose 0,3%, a new record at 6546 points, while the Dow Jones lost 0,4%. Wall Street analysts are rushing to improve their forecasts for the S&P 500 Index, With Fed cuts, solid corporate earnings, and renewed enthusiasm for artificial intelligence in sight, the 7000 point mark is seen as imminent.
In bond market, Treasury bond yields at 10 years rose 2 basis points to 4,0531%, after falling 4 basis points overnight, as a solid 10-year bond auction has eased some concerns about investor appetite for long-term U.S. debt. An even more significant indicator today will be bond issuance. thirty years for $22 billion from the Treasury. The 30-year yield rose 2 basis points to 4,7028%, after falling more than 30 basis points since briefly topping 5% a week ago. Yields two years fell two basis points to 3,54%.
Asia dragged upward by the rush to tech
The index Tokyo Nikkei, up 1%, hits new long-term highs. Softbank, one of the companies with the highest market capitalization, makes a significant contribution with the stock gaining 7,5% in the aftermath of the jump in its subsidiary Arm Holding on Wall Street.
The bags of China The markets are mixed. The CSI 300 index of the Shanghai and Shenzhen stock exchanges rose 1,7% to 4.524 points, just shy of the long-term high reached at the beginning of the month. Hong Kong's Hang Seng fell 0,3%, while the Hang Seng Tech was at par. The Taiwan stock exchange hit a new all-time high: the Taiex index rose 1%. Alibaba is trying to raise $3,17 billion with a large-scale zero-coupon convertible bond offering, it writes. BloombergThe bonds issued, maturing in 2032, will be convertible into American Depositary Receipts. The stock is up 0,7%.
Earlier this week, another Chinese tech giant, Baidu has priced its second tranche of a 4,4 billion yuan ($618 million) yuan-denominated bond offering, following a 10 billion yuan issuance in March. Meanwhile, Tencent Holding is considering its first public debt offering in four years with the sale of offshore yuan-denominated bonds as early as this month.
The Kospi index of Alone The stock gained 0,2%, up from 0,9% overnight. At a press conference, President Lee Jae Myung discussed the government's proposal to lower the capital gains tax threshold for equity holdings to 1 billion won ($720.429), from 5 billion won.
The prices of Petroleum They held onto gains after Poland shot down Russian drones in its airspace. is close to its all-time highs: +0,1% to $3.644 an ounce. On the currency market, movements were moderate, with the dollar The U.S. dollar index held steady at 97,81, slightly above its seven-week low of 97,25.
European stocks opened slightly higher. At the Milan Stock Exchange, eyes were on Buzzi and Stellantis.
European stocks are expected to open softer, but still higher, ahead of the European Central Bank's interest rate decision. EUROSTOXX 50 futures are up 0,17%.
BPM desk. In the event of a merger with Crédit Agricole Italia, the Italian government's focus would be on protecting savings and access to credit for small and medium-sized enterprises. This was stated in Reuters Marco Osnato, a member of parliament for the Brothers of Italy party and chairman of the Chamber of Deputies' Finance Committee, added that a bank's nationality is not in itself a problem.
Monte Paschi Bank. Subscriptions to Monte Paschi di Siena's bid for Mediobanca will likely reach 80% when it reopens next week, Mediobanca's General Manager, Francesco Saverio Vinci, said in a call with staff. The Lazio Regional Administrative Court (TAR) rejected Bluebell Partners' request for a precautionary suspension of the resolution authorizing Consob's capital increase for the Mediobanca bid.
BuzziJP Morgan raised its rating to 'overweight' from 'neutral', with a target price of 54 euros from 45 euros previously.
Stellantis has reached an agreement for the sale of the VM Motori production plant to a group of Italian investors that also controls the engine components company Marval. The binding agreement with Stellantis was signed by Gamma Holding, a vehicle created by Marval's controlling investors, said Marval CEO Vincenzo Nunziata. The automotive group welcomed the announcement by EU Commission President Ursula von der Leyen regarding an initiative to promote small and affordable cars in Europe.
Avio, could evaluate a capital increase of 300 million euros, he wrote yesterday Bloomberg News.
