The financial week is starting to close in the red on the eve of the decisions of the central banks. Inflation data in hand, it seems obvious new rise in the cost of money, more sensitive in Europe, less so in the USA, also given the slowdown in GDP in the first quarter. especially theFrench inflation on an annual basis it rose to 5,9% in April from 5,7% in March, while consumer prices in Spain increased by 4,1% from 3,3% in March.
Stock exchanges latest news: in Europe the GDP slows down, in the USA artificial intelligence pushes the markets
To lend a hand to US markets contributes instead the thrust ofArtificial intelligence, the latest Next Big Thing that makes investors dream, already disappointed by the false start of the Metaverse, which for now has betrayed expectations, or by the less brilliant start than expected of the cloud gaming industry, held back by the times of the authorities Antitrust to examine the agreement between Microsoft and Activision on standby since January 2022.
On the contrary, the quarterly of Big Tech demonstrate the good results but also the enormous potential of AI. The market particularly rewarded Microsoft and Meta Platform, followed by Alphabet while Amazon, after a positive start, paid for the prospect of a decline in e-commerce profitability, conditioned by the arrival of the recession.
The title Meta, in particular, has come to gain about 14%, or an increase in its capitalization of over 74 billion dollars, thus leaping to eighth place in the ranking by capitalization in the world, with about 612 billion while Mark Zuckerberg returns to the top 20 for men richest in the world, with assets of around 85 billion. All because searches related to the use of artificial intelligence have caused a real traffic boom.
Microsoft beats Meta and Alphabet with new AI-powered Bing
Even more symptomatic are the different reactions to the accounts of Microsoft and Alphabet. Both beat expectations but despite Alphabet announcing a 70 billion buyback plan, it was Microsoft who made major announcements on the development of artificial intelligence. App installs have quadrupled since the launch of the new Bing, powered by artificial intelligence that happened in February (try it if you haven't). The management added that Bing has gained market share in the US in the quarter. Alphabet, on the other hand, remains behind its competitor to the point that Alphabet has in practice called back the two founders, Sergej Brin and Larry Page, to speed up the response.
In short, the true yardstick was determined by the prospects for the application of artificial intelligence, one of the hottest and most discussed topics, as well as one of the technology segments with the best prospects. The possible developments are spectacular. According to a study by Zion Market Research, reported by Bloomberg, the global artificial intelligence market was valued at approximately $59,67 billion USD in 2021 and is estimated to expand at a compound annual growth rate of 39,4 .422,37% to reach $2028 billion by XNUMX. Currently North America leads the investments but the Asia Pacific market is expected to develop rapidly and grow at the fastest rates revolutionizing the activities of almost all sectors, starting with sectors such as healthcare, manufacturing and automotive. In short, the Stock Exchanges, which need ideas (and dreams) have found a new object of desire.
Europe slows down growth. The banks hold back the stock exchanges
Very different moods in Europe, nailed to much grayer times. After a promising start, Eurozone stock markets have taken the downward path. Piazza Affari -1,52% slips below the psychological threshold of 27 points. Paris is also slowing down by one point, the decline in Frankfurt being more modest. Disappoints the eurozone GDP growth, only +0,1% in the quarter (but after -0,1% at the end of 2022). Conversely, the Italian economy recorded a 0,5% increase. Better than the German economy, flat in the last three months.
In this context, the banks suffer the most; Banco Bpm, Unicredit and Bper show reductions between 3,8 and 4,5%. Fineco, the leader in asset management, is doing no better and is starting to suffer from competition from government bonds. The majority's own goal on the Def has no consequences for the moment on the performance of government bonds and the spread slightly rising to 191 points.
Wavering bonds awaiting the data on US consumer prices, the last sensitive statistic before the choices of the Fed. Treasury Notes at 3,46 years at 4,25%. BTP at 8%, -2,35 basis points. The Bund strengthens at 9%, -XNUMX basis points.
