The clouds are heavy: the price lists of Wall Street yesterday closed down, while the bond markets around the world are raising the alarm for theincrease in public deficits and accumulated debtAll that remains is to contact the , which is grinding out new records. Investors are awaiting the key data Friday on the US labor market which will give useful information to the Fed when it will decide its interest rate policy on September 17th. In Europe, the purchasing managers' indices will be the ones to follow (SMEs) for the euro area and Great Britain.
Bonds under pressure: huge offers, sky-high demands
Are the bond markets to attract attention in these hours by showing all over the world a rising yields at the long end of the curve. Governments and companies, as is tradition, return to the markets after the holidays to anticipate emissions for the rest of the year. quantities required at the market they are huge, but they are definitely bigger investors' demands, lured by high yields. According to analysts, this sharp rise in yields is also limiting stock price movements.
Yesterday the UK ha 14 billion raised of pounds ($18,7 billion) from a 10-year government bond syndicate, the largest on record, after raising orders for over 141 billion pounds, 40% of which came from international buyers. Meanwhile, Italy It received demand of over €218 billion for a €13 billion seven-year bond and a €30 billion 5-year bond. Demand for new debt is being driven primarily by bond funds. The XNUMX-year bond issue Japan tomorrow will be particularly followed.
The banks and companies have poured into the market, despite financing costs having increased from last month's lows: this was particularly true for French companies in view of the vote of confidence in the government next week, with Unibail-Rodamco-Westfield issuing a €685 million perpetual hybrid bond. United States Analysts expect investment-grade issuance of about $55 billion this week.
In addition to Europe, the'Saudi Arabia It has received approximately $15 billion in orders for the planned sale of five- and 2030-year sukuk, as part of efforts to finance the budget deficit and its Vision XNUMX diversification program.
And in JapanAt least seven companies have begun selling dollar-denominated bonds, in what is expected to be one of the busiest weeks of the year for global debt offerings. This brings Japanese issuers on the verge of surpassing $100 billion in dollar-euro issuance for the first time ever in a year.
I returns at the long end of the curve rose across the world. While bond yields American thirty-year-olds has risen to almost 5%, that of the British titles reached its highest level since 1998. The equivalent rate on French titles rose six basis points to 4,51%.
Negative sentiment is also spreading to other Asian markets. Japanese government bond yields 20-year yields rose to their highest level since 1999, while government bond yields Australians The 10-year yield rose five basis points, reaching a level last seen in July.
Wall Street falls as stocks await the Supreme Court's ruling on Trump's tariffs.
Wall Street started the month down, confirming the historic weakness of September, while investors are on tenterhooks after one federal court of appeals He declared most of Trump's tariff decisions illegal. The US president said last night that his administration will ask the Supreme Court for an expedited ruling in the hope of overturning the ruling.
Furthermore, investors are eager to read the monthly payroll report in the United States, expected on Friday, and to know whether weak US employment growth will continue for the fourth consecutive month in August. The data will be important for the fate of US rates: according to CME Group's FedWatch, US interest rate futures widely expect the Federal Reserve to lower its rates of interest this month, estimating a 92% chance of a 25-point cut based on the conclusion of the two-day monetary policy meeting on September 17.
Yesterday the indexes Dow Jones closed down 0,6%, S & P 500 down 0,7%, Nasdaq down 0,8%. Wall Street futures They report an overnight improvement of 0,1-0,2%, supported by optimism towards Alphabet. Google, by Alphabet Inc., will be required to share online search data with competitors, avoiding at the same time fines more severe, including the forced sale of his business Chrome, a judge ruled in the largest U.S. antitrust case in three decades. Alphabet shares rose in after-hours trading. principal researcher of artificial intelligence for robotics Apple Inc. left the company to join the competing venture of Meta Platforms Inc., part of an exodus of artificial intelligence talent from the iPhone maker.
Asia: Japan, China, and Australia decline, South Korea and Taiwan rise
The Australian index ASX 200 records the worst performance in Asia, with a 1% decline. GDP data showed the economy grew more strongly than expected in the second quarter, supported by strong domestic demand and stable government spending. However, this dampened expectations of further rate easing by the Reserve Bank of Australia. The RBA has cut interest rates three times this year, but has continued to signal caution about further cuts due to signs of stiff inflation.
Le Chinese bags sare weak. The CSI 300 index of Shanghai Shenzhen loses 0,9%, while the Hang Seng Index Hong Kong loses 0,4%. The Taiex is up 0,20%. Taiwan. The solids PMI data private sector data released this morning showed a stronger-than-expected increase in activity in the services sector, but it was not enough to slow the profit takingMajor Chinese chip and technology stocks, which led the August rally, lost ground overnight: artificial intelligence chipmaker Cambricon Technologies is down 4%.
Stock Exchange South Korea On the rise. South Korea's KOSPI index gained 0,3%. GDP data for the second quarter came in stronger than expected. However, further gains in the KOSPI were held back by weakness in technology stocks.
Japan recorded its fourth decline today: the Nikkei 225 index lost 0,3%, while the TOPIX dropped 0,4%, despite stronger-than-expected PMI data for August. This is the fourth consecutive decline.
Gold. It sets a new record at $3.547 an ounce, thanks to expectations about monetary policy and geopolitical tensions. Petroleum WTI. It fell 0,3%, following Tuesday's gains related to supply concerns. OPEC+ will meet this weekend.
European stocks are expected to rise slightly. At Piazza Affari, eyes are on Mediobanca and Banca MPS.
European stocks are expected to open higher. EuroStoxx 50 futures are up 0,3%. Eurozone PMIs are due out today, while ECB President Christine Lagarde is scheduled to speak this morning.
MPS BankUBS holds approximately 5% of Banca MPS, 4% of which is held in derivatives, according to Consob's update of significant shareholdings.
EnelGoldman Sachs raises its target from 9,5 to 10 euros and strengthens its Buy rating.
EniMorgan Stanley raised its target price to 14,6 euros from 13,8 euros previously.
Mediobanca, MPS Bank. Mediobanca's board of directors will meet on Thursday to review Banca MPS's new offer, a source told Reuters. On Tuesday, the takeover bid reached 30,125%, but according to some newspapers, the 35% threshold has already been secured by the Tortora family (over 1%), the Benettons (2%), and Enpam (about 2%).
MonclerBarclays raised its target price to 56 euros from 55 euros.
SnamGoldman Sachs raises its target from 5,3 to 5,85 euros.
tender. Goldman Sachs raised its target price to 8,40 from 7,60 previously, with a Sell rating confirmed.
MFE-Mfe-MediaForEurope – German Culture Minister Wolfram Weimer said he had received assurances from Mfe-MediaForEurope that ProSiebenSat.1 would maintain its independence to strengthen its broadcasting activities in Germany.
