The music of U2's “Stand by Ukraine” submerged in advance and surprisingly the echo of the warlike hymns of Red Square, today involved in the Putinian celebrations of the aggression against Ukraine (beginning at 10.30). Thus began a week full of questions for the markets, severely tested by the collapse of US stock exchanges on Friday.
Hence a high-tension start to the financial week. In Asia Pacific there was a general decline in the stock markets and widespread weakness among the area's currencies: the dollar-Indian rupee cross reached an all-time high of 77,3.
The US Treasury rises to 3,13%
Nasdaq futures are down 1%: European stock exchanges should open down about one percentage point. Government bond yields continue to rise. The 2018-year Treasury Note is around 3,13 levels, yielding XNUMX%.
Heavy opening in Tokyo (-2%). The obstinacy of a part of the board in defending the negative interest rate policy emerges from the minutes of the central bank. The yen, against the US dollar, is at its lowest since 2022.
The CSI 300 index of Shanghai and Shenzhen stocks fell by 0,6% on the day of the release of data on China's trade balance. Exports rose by 4% in April, down sharply from the +14% in March. The unemployment rate rose to its highest level since May 2020 (5,8%).
The Hong Kong Stock Exchange is closed for public holidays. Kospi of Seoul -1,3%. Sydney -1,5%. BSE Sensex of Mumbai -1%.
The sanctions affect the top management of Gazprombank
Oil moved little, around 110 dollars. The sanctions on Russian oil should finally be approved on Wednesday. The US commitment that emerges from the G7 communiqué unblocked the veto of the countries most dependent on Moscow: "We will work together and with our partners to guarantee stable and sustainable world energy supplies and affordable prices for consumers".
Meanwhile, the United States has announced new measures against Moscow: some executives of Gazprombank, the bank of the energy giant, are hit, three TV channels are turned off and Americans are forbidden to provide consultancy and accounting services to Russian companies
Christine Lagarde in Strasbourg: spotlight on ECB rates
The key appointment of the week for the fate of the stock markets will come next Wednesday, when the April data will be revealed to understand if the inflation peak has been reached: after the maximum since 1981, analysts expect a slight drop to 8,1, 8,2/8,5 percent, against XNUMX% in April. On the same day, Eurotower number one Christine Lagarde will speak to the European Parliament. A highly anticipated intervention because the markets now believe a rate hike within the year is taken for granted.
Industrial production data tomorrow
Watch out for the Zew German Business Confidence Index on Tuesday.
On the same day, Istat will publish the data on industrial production in March, while there is expectation for the intervention in Parliament by the Minister of the Economy Daniele Franco on Ita.
At Piazza Affari, a long list of balance sheets and dividends for Egm and Star companies. Scheduled balance sheet and subsequent call with Bper analysts.
On Wall Street, watch out for Walt Disney and Rivian
In the US the parade of corporate accounts continues. Attention to Walt Disney, engaged in the dispute with the State of Florida which is asking for censorship on the contents (deemed too sexually transgressive) of the products of the entertainment giant, under penalty of the end of the tax advantages on playgrounds.
To follow Rivian's accounts on Wednesday: the lock up on Tesla's competitor in the electric car expires. It is likely that the sales of Ford, which has 5%, and of Amazon, the main shareholder, will take off.
