The end of the week is growing for the equity markets, despite the ECB's Economic Bulletin reiterating that inflation remains above the guard level. But the economies, Italy in the lead, are looking to growth, almost everywhere above forecasts and to the propellant of the dollar's rise which, from Tokyo to Piazza Affari, favors investment in shares. And so, hoping that the speeches in the evening by Jerome Powell and Christine Lagarde do not spoil the mood of the operators, the operators are looking at the G7 weekend with a certain dose of optimism.
Milan at the top, the rating is not scary
At Piazza Affari the Ftse Mib +1,25% accelerates confirming itself at the top of the European price lists. The rise in the estimates on economic growth for 2023/24 contributes to giving the charge.
The bond market was also calm a few hours after the verdict of Moody's on the Italy rating: The spread fluctuates around 185 points. German Bund at 2,45%. BTP 4,31%: according to UniCredit, which expects confirmation pending greater clarity on the developments of the Pnrr in the coming months, there is the possibility that the agency will improve the outlook to stable from negative especially in light of the lower risks related to the energy crisis.
- The rebound of crude oil pushes the energy sector: Saipem +3% which continues the race that began yesterday after the announcement of important contracts. Eni rises by 1,2%.
- Utilities are recovering after the drop the day before. Hera leads at +3,1%. Enel +1,3%.
- The automotive shines. At the top of the list is Cnh +3.3%. Stellantis +1,90%
- Well Stm together with the European techs, in view of the foreseeable good start of the Nasdaq.
- In the rest of the price list, Fincantieri +2% after a contract from the US Department of Defense worth 526 million dollars.
- Lively Autogrill +2,7% after that Dufry achieved 87% of the capital with the Ops, which will be reopened for five days from 26 May to XNUMX June
Banks are targeted. Towards a watch grasp
- Apart from the umpteenth disappointment of Juventus -1,4% after the defeat in the Europa League, the decreases, however contained, are concentrated in the banking sector. Pressure weighs on institutions to adjust upwards the rates recognized to customers and/or a possible tax on extra profits. The ECB is considering additional requirements for supervised banks with a high share of unsecured deposits above €100.000 concentrated in a few customers. The newspaper MF writes it, recalling that in the autumn letters with the capital requests for next year will be sent to the banks on the basis of the Srep analysis which also defines the individual second pillar requirements.
- Unicredit and Bper lose 0,7%, Bper -0,1%, Intesa Sanpaolo +0,4%, all above the lows of the morning.
ALSO READ: Banks: big profits, but little remuneration of current accounts. Deposit accounts are better
Charging bull: Germany, Japan, Brazil.
The rise in Piazza Affari is not isolated. The Dax of Frankfurt +0,5%, is less than a percentage point from the historical record.
In the morning Tokyo has completed a historic session: the index closed up 0,77%, reaching its highest level in 30.924 years at 33 points. Today's was the seventh consecutive gain, for a performance since the beginning of 2023 of around +11% (in euro). The Japanese stock market rally was fueled by a positive quarterly season, a "soft" approach by the Bank of Japan and the recovery in consumption led by the return of post-Covid tourism. The endorsement of Omaha guru Warren Buffett is not negligible.
Also celebrate the Brazil which yesterday completed its ninth positive session out of the last ten, reaching its highest level in three months. +5,70% from January 0,80st. Retail sales jumped higher on a boost from electronics products and office supplies, strengthening the macro picture. In Latin America's largest economy, sales rose 0,20% in March, compared with the previous month, beating all forecasts indicated in a Bloomberg survey, which estimated a contraction of 3,20%. Compared to the previous year, sales grew by +1,20%, according to the National Institute of Statistics. The estimates were much more conservative: +XNUMX%.
Wall Street and macro data
Also Wall Street it seems ready for a weekend extension on the wave of the recovery of the regional banks. The KBW index of major US banks closed yesterday evening with a rise of +5,0%. It was the best session of the year. In particular, the shares of regional banks were in the limelight: PacWest Bancorp closed up +22%, Western Alliance Bancorp +10%, Zions Bancorp +10%, Comerica +12%, Keycorp +9%. The loss of the index since the beginning of 2023 is reduced to -23,50%.
The cross euro/dollar is at 1,079 on March levels.
The recovery in risk also affects gold, today 1.967 dollars, which has reached its lowest level for a month and a half.
Market rates go up Treasury Notes at ten years it reached 3,63%, about eight basis points more than yesterday. German Bund at 2,45%. BTPs 4,31%: tonight after the market is closed, Moody's decides on the Italian rating.
Il Brent oil and WTI is up 0,7%.
