Financial markets have gone from excitement over technology stocks to desire to achieve after the powerful rallies with investors moving towards defensive positions in view of the weekend, worried about the escalation of hostilities in the Middle East and the stalemate in peace talks between the United States and Iran. Keep an eye on theUkraine where the possibility of a resolution of the conflict could trigger purchases on sectors related to reconstructionIn Asia, the Kospi index, the symbol of artificial intelligence, fell nearly 5%. In the US, key May labor market data is due today, which could inform the Fed's rate policy. Oil is little changed, while bitcoin continues to fall. Futures point to a further opening decline for both Wall Street, While the European stock exchanges there are few expectations.
More clouds over the Middle East. Hopes for Ukraine and Russia. Oil prices hover around $95.
Yesterday the militia Hezbollah, backed by Iran, rejected a new ceasefire in Lebanon and Israel He said he would not withdraw troops from the country, undermining US President Donald Trump's efforts to stop the fighting and reach a peace agreement with Tehran.
Some positive indications, however, come from the Ukrainian front. Volodymyr Zelensky is trying to turn the conflict around by calling on Vladimir Putin to direct comparison for end the war that has shaken Europe for over four years. In an open letter to the Russian president, the Ukrainian leader proposed moving beyond the mediation stage and reaching a face-to-face meeting between the two heads of state, accompanied by the involvement of Europe and the United States as guarantors of any eventual agreement. Moscow: "He can come whenever he wants."
Brent crude traded around $95 a barrel after a 2,8% drop on Thursday, while West Texas Intermediate crude is hovering around $93. Brent crude is on track to close the week with a gain of around 3,5%, after two consecutive losses.
Yesterday, Wall Street was heavy on chips, while healthcare and financial stocks rose. Key jobs data is expected today.
Yesterday on Wall Street the Dow Jones and S & P 500 closed up 1,73% and 0,41% respectively, while the Nasdaq fell 0,09% after Broadcom's disappointing results. In particular, the Dow Jones index, composed of blue-chip stocks, recorded a new all-time high thanks to boost from the healthcare and financial sectors.
The chip maker BroadcomBroadcom, which missed revenue expectations, sent its shares plummeting 12,6%, but more importantly, it cast a shadow over AI enthusiasm and dragged down chip stocks, which had gained more than 92% since the beginning of the year. Broadcom's second-quarter revenue of $22,19 billion fell short of expectations of $22,27 billion, although the company confirmed its forecast of $100 billion in revenue for next year. The chipmaker Marvell Technology gained 4,9%, while Advanced Micro Devices, micron Technology e Qualcomm they lost between 2,6% and 7,7%.
Il healthcare sector received a boost from United health which jumped 5,2% after Bank of America raised its rating on the healthcare conglomerate's shares to "buy." The financial index's rebound, however, followed a sharp decline in the previous session, due to the reemergence of concerns about private credit. Blackstone joined other asset management firms in limiting withdrawals from its flagship private credit fund following a increase in refund requestsIts shares rose 7,5%.
All eyes on the roadshow among investors SpaceX, the company led by Elon Musk in view of its market debut on June 12. The aim is to collect 75 billion dollars in a record-breaking IPO that would value it at $1.750 trillion. Up to a quarter of the capital harvest will be reserved to individual investors.
On the economic front, initial jobless claims unexpectedly rose 6,1%, and labor costs and productivity for the first quarter were revised sharply downward. A report by Challenger, Gray, and Christmas showed that layoffs announced by US companies jumped 11% in May, reaching 97.006. Nearly 40% of these layoffs were attributed to artificial intelligence.
Today key data is expected on'employment in May. Market forecasts call for a solid gain of 85.000 jobs, keeping the unemployment rate steady at 4,3%. A higher figure would further reduce the likelihood of a rate hike by the Federal Reserve. futures of the Nasdaq indicates aopening still declining today by 1,1% and S&P 500 futures by 0,6%,
AI leaders are also losing momentum in Asia. Kospi plunges 4,7%.
Even in Asia you can feel the same air of fulfillment on artificial intelligence stocks after the strong rally of the past few weeks, while the weakness of the South Korean won and Indonesian rupiah. The MSCI Asia Pacific Index is down 1%.
In Japan, the stock exchange Tokyo is down 1,5%, while it is about to close the week flat. Softbank The yield on the 10-year government bond is down more than 10%. The yield on the 10-year government bond is rising to 2,66%, from 2,58% yesterday. It is moving little and remains close to critical levels. yen, at 159,9 to the dollar. real wages Japanese workers' wages rose for the fourth consecutive month (+1,9%), marking the longest period of growth in the last four years and strengthening the case for a rate increase of interest on the part of the Bank of Japan at the next monetary policy meeting on June 15-16.
In ChinaHong Kong's Hang Seng Index is down 0,8% and is on track to close the week with a 0,5% decline. The CSI 300 index of the Shanghai and Shenzhen stock exchanges is unchanged today and close to last week's levels. Taipei's Taipei Exchange is down 1,1%, with a weekly gain of 1,3%.
In South Korea, the index Kospi Seoul is down 4,9% although the weekly balance remains slightly positive, +0,5%, with the chipmaker SK Hynix down 8%. won falls on lowest since 2009 against the dollar at 1.538. Foreign investors sold $4,6 billion in local equities, bringing total outflows this year to $74 billion. Last night, Finance Minister Koo Yun Cheol said that authorities were monitoring currency market developments "with high vigilance" to prevent the spread of anxiety, and promised to "take timely and necessary measures in the event of excessive market fluctuations."
In Indonesia The Jakarta stock market is down 2% and has accumulated a -7% over the week. Just five months from its all-time high, the benchmark stock index has collapsed 37%, becoming the worst performer this year among the more than 90 global indices monitored by Bloomberg. Indonesian Rupiah weakened by more than 7%, as foreign investors withdrew billions of dollars from Indonesian bonds.
Le cryptocurrency extended recent declines, with bitcoin losing 1,4% to $62.725,54 and heading for a 15% weekly decline, its biggest since the week of the FTX crash in November 2022, while ether lost 2,3% to close at $1.732,09. Gold spot recorded a decrease of 0,8%, settling at 4.439,91 dollars.
European stock markets opened flat. At the Milan Stock Exchange, eyes are on Paschi, Eni, and Pirelli.
European stocks are seen opening little changed based on Euro Stoxx 50 futures.
UkraineA resolution to the conflict could benefit stocks exposed to reconstruction: Buzzi, Maire, Danieli, Pirelli, Luve, Webuild.
Monte dei Paschi – Equita raised its rating to Buy, with a target price of 11,80 euros.
DiaSorin – The stock closed up 7% yesterday on rumors of a possible offer from unidentified buyers
Eni The Ministry of the Environment and Energy Security has authorized gas extraction from a new offshore field in the Strait of Sicily, called Gemini. MF reports. The site has reserves of 1,2 billion cubic meters and will be entirely operated by Eni.
Pirelli – He denied Grizzly Research’s allegations regarding ties to Russia.
Media - Second Il Sole 24 Ore , the Greek group Antenna Group, an international media company that recently acquired Gedi's assets in Italy (including La Repubblica and major radio stations), is accelerating its Italian strategy. The group has established a company dedicated to video content, launched a digital news partnership with Dazn as a pilot project, and is discussing the creation of a branded all-news channel with Warner Bros. Discovery. CNN.
Terna – It raised the maximum amount of the medium-term issuance programme from 4 to 6 billion euros.
UniCredit Commerzbank has released some data regarding the shares tendered in the offer. CEO Bettina Orlopp expressed a potential openness to a deal, although a premium would be required.
