It may be cynical, but that's the way it is: today Wall Street is rooting for the labor market statistics to signal a slowdown in employment below the 325 jobs forecast by the technicians. If that happens, it will be the confirmation that the first interest rate tightening is starting to bear fruit, thus avoiding further shocks to the stock market. After all, in his latest publications, Jerome Powell has highlighted that a worker today can choose between two vacant jobs, a disparity that tends to accentuate the inflationary push. While awaiting the numbers, US markets experienced a bullish session, despite Fed Vice President Lael Brainard in an interview with Cnbc froze hopes by answering a question about a possible pause in rate hikes. “I see it hard,” she said.
Biden to Ryyadh: Saudi Arabia is no longer a pariah state
Judging by the quotations, the increase in production decided yesterday by OPEC+, which raised the quotas to 648 barrels, does not arouse enthusiasm. In reality, the pro-rata increase divided among all the countries has more of a political value than a concrete one: only Saudi Arabia and the UAE can significantly increase production; other countries, especially Angola and Nigeria, are struggling to meet the previous quotas. The value of the decision is entirely political: the Saudi prince Mbs opens to Biden in exchange for weapons against the Hutu rebels in Yemen and, above all, the arrival of the US president in Ryyadh at the end of June for a visit that would sound like an acquittal for the murder of the journalist of The Washington Post Adnan Khashoggi, performed in the Saudi embassy in Istanbul. Upon appointing him, Biden promised that he would make Saudi Arabia a pariah state. But, when it comes to oil, pecunia non olet.
Tokyo advances, technology rushes. Half +4%
The Chinese stock exchanges are closed (along with the English ones, which are still due to the Jubilee of the Queen), yesterday's rally in US markets continues in Asia. Tokyo advances by 1%. Seoul's Kospi gains 0,4%, Sydney 0,7%. The Straits Times is on parity.
Yesterday the Nasdaq closed up 2,7%, the S&P500 1,8%. The tech index, from the lows for the period on May 24, rebounded by 9%.
Tesla, Nvidia and Meta are running (+4%) after the resignation of Sheyl Sandberg, who suggests that she wants to enter politics.
Microsoft +1%, despite having cut the forecasts on revenues and profits for the year: "The dollar is too strong and harms us", is the alarm of the cloud giant.
The euro rises, Brent at 117,5 dollars.
The Treasury Note moved little, practically on yesterday's levels, at 2,92%.
The euro consolidates its positions after yesterday's leap. The cross with the dollar returned close to an important graphic threshold, at 1,075.
Oil essentially unchanged this morning: WTI at 116,5 dollars, Brent at 117,5 dollars. Markets have taken note of both OPEC+ and Brussels' sanctions on Moscow.
EU sanctions on the way. Brussels spares Kirill
Meanwhile, after a tiring ordeal, the EU has finally launched the sixth package of sanctions against Moscow. The rules include a partial ban on oil exports and the removal of Russia's top lender, Sberbank, from the international SWIFT platform.
The approval came after Hungary repeatedly denied the bloc the necessary unanimity by stepping up its national demands. The last obstacle was removed yesterday after the other 26 countries decided to remove the head of the Russian Orthodox Church and close ally of the Kremlin, Patriarch Kiryll, from the proposed blacklist, to appease Budapest.
Inflation, new flashes: the June 9 meeting is "decisive"
“The June meeting will be decisive,” says François Villeroy de Galhau, a French member of the ECB. One week before the Frankfurt summit, new signals are arriving on the inflation front, now beyond the energy frontier. Industrial production prices in April increased by 1,2%, in the EU by 1,3% or, compared to a year earlier, +37,2% and +37%. But inflation, warns the French banker, "is not only too high, it is also too large". They range from Malta (+5,6%) to Lithuania (+21%). "This requires a normalization of monetary policy: and I say normalization, not tightening."
These words do not have too much influence on the performance of the bond markets, which are firmly oriented towards rising yields.
Btp and Bund sink. The euro recovers
Both BTPs and Bunds sink. The yield on the Italian 3,27-year bond rises to 1,23% and that of the Bund rises to +204%, the highest for eight years, for a net widening spread to 7,01 basis points, +XNUMX%.
On the foreign exchange market, given the air of increases in the cost of money, the euro recovers around 0,7% against the dollar and trades at around 1,072.
Milan +0,6% on a public holiday. London closed
Piazza Affari closed the session up 0,59%, at 24.426 points, at the end of a rare day of trading due to the Republic Day.
London is closed for Queen Elizabeth II's platinum jubilee. Paris is tonic, with an increase of 1,27%.
Remy Cointreau flies to Paris. Saint Gobain also runs
Remy Cointreau runs in Paris (+4,92%) after beating earnings estimates and announcing optimistic forecasts for the current year and for subsequent years. Followed by Pernod Ricard (+2,9%). The best stock is Saint Gobain (+5%). The big names in luxury are effervescent.
Frankfurt did well (+1,01%). Madrid (-0,04%) and Amsterdam (+0,32%) are shyer.
Luxury and spirits are also advancing in Piazza Affari. Sale Campari (+1,9%), preceded by Ferrari (+2%). In the automotive sector, twin increases for Iveco and Cnh Industrial, both +2,47%. At the top of the list is Moncler (+3,05%).
Interpump restarts, Saipem goes back again
More money on Interpump (+2,8%). Oil stocks proceed in no particular order. Eni and Tenaris +0,2%. Still down Saipem (-1,9%). Utilities contrasted: A2a -1,1%, Enel +0,51% Among weak banks, Bper (+0,86%) stands out positively, gaining 0,3% after the go-ahead from the Antitrust at the acquisition of control of Banca Carige.
