The road is the right one, but it will take time. Jerome Powell reassured the markets yesterday: a reverse on interest rates is not foreseen, but the exuberant trend of the labor market requires prudence. That is a quarter point increase in both March and May. Wall Street, which feared the worst, breathed a sigh of relief. The US stock purchases were triggered when Powell said “I expect inflation to drop significantly in 2023”. Magic words.
Strong opening for Eurostoxx, Milan at the top
The rise in US stock prices is felt this morning on European futures: the index Eurostoxx should open with a hefty +1%. Yesterday the markets of the Old Continent experienced a waiting session, conditioned by the fear of a new tightening on the cost of money.
Business Square still at the top +0,36% thanks to the banks. Stand out at City the leap of BP +7,2%.
Rates on the rise bond market. Today the 3,65-year Treasury restarts from 10%. 2,34-year German Bund at 4,2%. XNUMX-year BTP at XNUMX%.
Bundesbank calls for 'strong hikes'
At the words of Powell echoed the president of the Bundesbank and ECB adviser, Joachim Nagel: are needed other “significant” increases of interest rates, he said in an interview with the Boersen Zeitung, warning that to counter inflation, increases in the cost of money must not be stopped too soon. Indeed, Nagel made it clear that the ECB's intention to raise rates by 50 basis points next month is "a strong commitment" and that he does not believe that "with this rate hike in March our work is over".
Microsoft, the challenge of artificial intelligence begins
After Powell's words le US stock exchanges have taken the upward road: Dow Jones +0,78%, S&P 500 +1,29%, Nasdaq +1.9%. Data on consumer credit in the United States, well below estimates, show that the cost of living is holding back consumption.
• Microsoft +1,3% announced theinsertion of Chat Gpt, which is the application of Open Ai based on artificial intelligence in its products: the challenge to wrest from Google a part of the dominance in search engines, a 150 billion dollar market. Even the Chinese Baidu has launched a similar product: the title has risen in New York by 13% .
Biden calls for more taxes for the rich and new buyback taxes
• Great attention also to the words of Joe Biden: In his address to the nation, the president reaffirmed his willingness to raise the taxes on the richest and new buyback tax. But it is unlikely that the Republican-majority Congress will satisfy Biden who seems determined to resubmit his candidacy.
Unexpected slip of softbank
Contrast the Asian squares
The relief for Powell's words are counterbalanced by the negative data coming from companies, especially from Japan. Tokyo -0,4%.
• Lose 6% Nintendo which thus pays for the sales crisis of its Switch console. It gets worse Sharp -11,2%, the PC and mobile screen maker controlled by Foxconn. Surprisingly, the colossus ends in deep red Softbank -6,2%, betrayed by his investments in start-ups through the Vision Fund: losses exceed 6 billion dollars.
• Advance the instead Korean stock exchange +1,3%. Chip problems aside, the price list celebrates the historical record of SM Entertainment, the agency of Korean pop stars. The stock gains 5% this morning. The founder and major shareholder of the company, Lee Soo Man, he made it known that he will oppose in every possible way the board's decision to let the Internet conglomerate, Kakao, enter the capital with a 9% stake.
• The India Stock Exchange it rises and the dollar rupee cross is unchanged, after the announcement of the increase in interest rates by the central bank. The BSE Sensex gains 0,5%. The Indian prime minister said he expects a 500% increase in demand in the coming years to accompany the country's economic boom.
European gas still down, gold shines
Oil still does not indicate a precise course: brent at $83,60 +0,2%, up on the third session after six downs. The Natural gas closed yesterday down -4,6%, slipping just short of the lows of the last 14 months.
Continue the march Of their. 1,878 dollars an ounce +0,3% Last year the annual demand for gold increased by 18%, reaching 4.741 tons also thanks to the purchases of central banks and sovereign wealth funds (1.135 tons, the maximum since 1967).
In the spotlight the banks. Intermonte raises Banco Bpm's target to 5,40 euros (Buy recommendation) after the accounts.
Kbw raises the target by Fineco from 16,5 to 18,5 euros and reinforces the Outperform rating.
Understanding: Goldman Sachs raises its target from 3,10 to 3,55 eu, confirms the Buy.
Pirelli. Sell after negative guidance from Nokian..
