Wall Street earnings outrun stock prices. This is the data that emerges from the US quarterly accounts, which report profits up 90% compared to a year ago. Of course, the comparison is distorted by the closures of 2020, but analysts still did not expect such a robust rise. And so, despite an 18% growth in price lists, on the eve of mid-August the price/earnings ratio fell 21 times, against 22,1 in January. In short, the Fed's policy has worked: the Stock Exchanges, not just the American one, are approaching the autumn decisions in good health, ie the progressive cut in the purchases of securities by the US Central Bank. A positive picture, but which does not include Asia, afflicted by the boom of the pandemic but perhaps even more by the tightening imposed by the party on the technology sector.
TAIWAN AND SEOUL, CHIP CAPITALS, UNDER FIRE
The Chinese stock exchanges are starting to close the session down: Hang Seng of Hong Kong -0,7%, CSI 300 of the exchanges of Shanghai and Shenzen -0,6%.
Taipei's Taiex, a listing with a very high presence of high tech companies, is about to end the week with a drop of 2,8%.
Tokyo's Nikkei is unchanged, around 28.000 points at the end of the day, +1% compared to last Friday.
Mumbai's BSE Sensex gains 0,5%, +1,5% a week.
The worst performing stock market in Asia Pacific in the last week is South Korea: Kospi index -3,3%. The reference benchmark of the Seoul Stock Exchange lost 1% this morning. All the companies of the Samsung conglomerate are down, starting with Samsung Electronics (-3,3%). Jay Y. Lee, vice president and sole heir to the immense wealth built by his family, was released on bail tonight from prison where he had ended up for corruption.
THE PARKS REOPEN: WALT DISNEY +5%
Wall Street futures are little moved in the aftermath of the new records of the S&P500 (+0,3%). The Nasdaq gained 0,35%. Flat the Dow Jones.
After the stock market Walt Disney rises +5% after the accounts: subscribers to streaming services alone rose to 174 million and amusement parks are back in profit.
MODERN BOUNCES, TESLA RISES AGAIN
In great evidence Apple (+2,1%) and Microsoft. Moderna recovers positions after the crash on the eve. Shine also Tesla.
For the third consecutive week, new jobless claims fell to 375, in line with the consensus (the previous figure was 387). With this improvement, we are almost on pre-pandemic levels.
Producer prices rose last month by 1% compared to June, against the +0,5% expected by the consensus.
$1.087 BILLION PARKED AT THE FED
The 1,36-year Treasury returned to last month's levels at 1,33%, from 1,087%. Cash parked in Federal Reserve accounts is once again at unprecedented levels: $74 billion was placed yesterday by XNUMX participants in the US central bank's liquidity drain.
WTI oil is down 0,7%.
MILAN, PARIS AND FRANKFURT TOWARDS THE RECORD
The macro data are not very good: in the Eurozone, industrial production in June fell by 0,3% compared to May and disappointed consensus expectations (+0,6%). On an annual basis, the reading rose by 9,7%, a clear slowdown compared to the +20,6% recorded in May. Even from overseas there are conflicting signals, under the pressure of the Delta variant. Yet the European Stock Exchanges, more out of inertia than out of conviction, continue to race upwards. Frankfurt hits a new high, Paris is one breath away from the all-time record, Milan is quickly making up for lost ground. Once the obstacle of US inflation has passed, the market is heading towards a mid-August holiday under the sun.
BUSINESS CENTER, EIGHT RISERS IN A ROW
Piazza Affari (+0,38%) closed at 26.557 points, the new high for 13 years. We are at the eighth consecutive rise.
Istat announced this morning that the Italian trade balance in June presents a positive balance of 5,7 billion euros, slightly above the May figure.
The Cac 40 of Paris, +0,36%, is approaching the historical record which dates back to 21 years ago. Only 0,9% is missing from the finish line.
ADIDAS SELLS REEBOK, DEUTSCHE TELEKOM RAISES ESTIMATES
Frankfurt appreciates by 0,7% after scoring a new high of 15.937 points during the day, after a two-month chase. August is starting to be the seventh positive month in a row.
The top five are Deutsche Post (+43%), Merck (+35%), Volkswagen (+34%), Daimler (+30%) and Heidelberg Cement (+23%). Also noteworthy is Deutsche Telekom, which, for the second time, raised its earnings estimates.
Adidas has announced the sale of the Reebok brand to Authentic Brands Group for a figure that could be up to 2,1 billion euros ($2,47 billion).
Madrid and Amsterdam are practically colorless, while London loses 0,35%, ballasted by the mining sector following the crash of Rio Tinto (-5,5%).
ZURICH AND AEGON LEAD THE INSURANCE RACE
The Swiss group Zurich (+5%) communicated half-year results higher than expectations, with a net profit of 2,2 billion dollars, up 86%, against estimates of 1,9 billion. In addition, over 600 new retail customers joined the first half of the year for a total of 52,2 million. The insurance group underlines "the strong capital position" with a Swiss Solvency Test index at 206%, up 24 points, "well beyond the group's target of at least 160%".
The best stock in the global European index is Aegon (+7%): the Dutch insurance company presented positive data for the quarter and called a 250 million euro perpetual bond.
Since the beginning of 2021, the European insurance sector has gained 12,5%, lagging behind the +18,80% gained by the global Stoxx.
On the fundamentals front, in the light of the recent upward revisions of estimates, it presents an average P/E of around 12,70x, among the lowest in the sector panorama, while the dividend yield at 4,60% is, on the contrary, between the highest in the sector panorama.
SPREAD DOWN TO 100 POINTS, BTP YIELD AT 0,55%
The spread between BTPs and Bunds is reduced to 100 points on a positive day for Italian paper. The 0,55-year rate is around 0,57%, compared to XNUMX% at the previous opening and closing.
The European Central Bank's new strategy to boost inflation in the euro zone has failed to convince German financial analysts, according to a survey published by the Zew.
STELLANTIS SPEEDS UP, WEBUILD RUNS
In the afternoon, Stellantis (+2,66%) set the pace on the Milanese price list, reaching new highs at 18,49 euros after the merger with Psa. At the European level, the sector rose by 0,9%. The stock is moving in an upward channel that started last week after the results for the quarter above expectations and the guidance for the year.
Interpump (+1,45%) and Amplifon (+1,4%) also stood out.
The ok to the infrastructure plan in the United States continues today to support the construction sector in view of the involvement of Italian companies: WeBuild tonic which rises by 1,6% after yesterday's break, reaching new highs since September 2018.
Cementir advances by around 1%. Buzzi slows down (-0,44%).
REFLECTORS ON TELEPASS (ATLANTIA)
Well collected Atlantia (+1,24%). The possible listing of Telepass in 2024 pushes the stock higher. Equita analysts value 51% of Telepass at 1,1 billion. The broker confirms the hold rating and the target price at 18 euros. SocGen has restarted coverage with a buy recommendation and a target price of 18,1 euros.
Among the banks, profits on Bper (-0,45%) and Banco Bpm (-0,95%) prevail. Mps does worse, dropping 1,2%. The big Unicredit and Intesa Sanpaolo were also weak, down by 0,7% and 0,2% respectively.
In luxury, after yesterday's flare-up you also realize on Ferragamo (-2,95%).
Tod's also changed course, strong in the morning, down 1,1% at the end.
CHILDREN'S TIME: CY4GATE SHINES, VOLANO OMER AND CIRCLE
Outside the basket, the Cy4gate rally continues, marking growth of around 10% and new all-time highs at 11,88 euros.
Omer flies to Aim: +10,74%, to 4,02 euros. The railway components company, which hit the stock exchange at the beginning of the month at 3,40 euros, is running along the same lines as Salcef, which presented very strong half-year figures (revenues +42%, Ebitda +31% and order backlog at 1.100 million EUR). Also in great evidence Circle (+7,37% after +20,25% on the eve), to the news that the group will be among the members of the international consortium of the project to reduce GHG emissions in ports under the European program Green Deal Horizon.
