The markets mark time after the debut of Coinbase and the quarterly reports of the big banks. Yesterday's abrupt withdrawal of the Nasdaq is felt this morning in Asia: the Hang Seng of Hong Kong (-1%) and the CSI 300 of the Shanghai and Shenzen lists (-1,5%) are mainly paying the price. Taipei's Taiex is up 0,7%, Tokyo's Nikkei 0,3%, Seoul's Kospi 0,4%. Mumbai's BSE Sensex opened on a decline. Wall Street futures are up slightly in the aftermath of a session of retreat of the big names in technology.
Why this reaction? Revolutions, as we know, leave their victims on the ground. No exception is the irruption on the financial scene of Coinbase, the Bitcoin trading platform that entered the Nasdaq enclosure yesterday with a bang, reaching, after four hours of heart-pounding trading, a maximum price of 420 dollars, or a market value well over $100 billion. Then the sellers took over and the stock dropped to $328, which indicates a stock market value of $76 billion, more than the value of the Chicago Stock Exchange, the Nasdaq and the Nyse combined. A madness? Perhaps, as was said at the debut of Netscape, the first Internet browser, in 1995. But unlike the pioneers of the web, Coinbase lands on the list with 56 million customers (increased by 13 million since January) and an amazing profitability: 1,8 billion in profits in the last 3 months, more than double what was earned in 2020. Furthermore, yesterday both bitcoin and ethereum (the second most capitalized cryptocurrency) reached all-time highs, respectively at 64.829 and 2.399 dollars. At the same time, the entire cryptocurrency market reached 2.200 trillion, surpassing Apple's capitalization for a few minutes.
These numbers serve to explain the setback of the Nasdaq (-0,99%) after sales that focused on the tech sector, without sparing the Bigs. It is evident that investors have diverted a portion of the profits to growth stocks for the bet of cryptocurrencies, in a sense promoted by the official listing. And probably the phenomenon partly explains the slowdown in Chinese stock exchanges (US investors account for 8-10% of volumes in Shanghai). S&P also fell (-0,41%), despite the quarterly expectations of Goldman Sachs (+3%) and Wells Fargo (+5%) rewarded by the boom in turnover in the quarter. Marking time, despite the excellent business, JP Morgan, because the market did not like the decline in loans. But Jamie Dimon then reassured investors: companies and households are so liquid that they are repaying mortgages and loans, but will soon make new ones. Today the accounts of two other leading names in Wall Street finance arrive: Citigroup and Bank of America.
Amid so many fireworks, the 1,63-year Treasury Note was barely moved at 63%. Wti oil is trading around 4 dollars this morning. Yesterday Brent rose 66.18% on the announcement of sharply declining US crude inventories. This morning it traded at XNUMX dollars, down levers.
LAGARDE: THE EUROZONE STILL NEEDS TWO CRUTCHES
The eurozone economy still relies on the "two crutches" of monetary and fiscal stimulus, and will not be able to go without it until full recovery. It is the colorful metaphor used yesterday by the president of the European Central Bank, Christine Lagarde, to illustrate the situation in the Eurozone. “Think of a patient who has just come out of a serious crisis, but still leans on two crutches – said Lagarde – Neither of the two crutches, the fiscal and the monetary one, can be removed until the patient can walk independently , which means continuing support until the recovery has taken place”. The same concept, in a less poetic way, is contained in the bank's annual report: "Fiscal support was and is essential".
The European Union has communicated how it will finance the Next Generation EU. Issues of up to €800 billion are expected over the next five years, with an average of €150 billion a year. Repayment is expected by 2058. About a third of the loans will be green.
OILS SAVE THE BUSINESS PLACE (-0,1%)
Piazza Affari closed the session with a drop of 0,1%, to 24,574 points, after a strong recovery compared to the day's lows thanks to oil prices.
SAP (+4%) BLOWS GOOGLE TO ORACLE
Frankfurt was also weak (-0,14%). Sap takes off (+4%). Google has announced that it will adopt SAP's software for its internal operations, leaving Oracle. The Mountain View giant's decision comes at a time of particular tension between the two companies, given that Oracle recently lost the case over the use of Java applications in Android.
LVMH BREAKS THROUGH THE 300 BILLION ROOF
Paris +0,42% driven by Lvmh (+2,63%), which leapt above 300 billion in capitalization for the first time after the revenue numbers for the quarter, well above expectations, especially in the highest-performing divisions margin (fashion and leather goods). Equita has revised upwards turnover (+9%) and profits (+15%).
Best of all London (+0,74%) and Madrid (+0,76%).
THE MAJORITY WANT GUARANTEES FOR THE ITALIAN STOCK
The majority parties have asked the government to take action to preserve the autonomy of Borsa Italiana in the context of the operation that will lead Piazza Affari to become part of the Euronext group. In a motion approved in the Chamber, the government parties ask Prime Minister Mario Draghi to "protect the strategic economic-financial structure of Borsa Italiana and its autonomy".
VACCINES WEIGHT ON BTPs: YIELD AT 0,78%
The Italian secondary ended the session with a negative intonation, in a prudent market that looks with concern at the situation of the vaccination campaign. 0,26-year Bund at -2022%; yields on the rise although Christine Lagarde said today that it is premature to think of raising rates in XNUMX.
The 0,78-year BTP rate closed at 0,73% from 10%. The gap between Btp and Bund rates on the 103-year segment stands at 105 points, from 20 on the previous day. On the primary market, Ireland has mandated a pool of banks to issue a 2-year bond which, according to forecasts, could raise 3-XNUMX billion euro.
TENARIS SUPERSTAR IN MILAN, FOR EQUITA IS BUY
Among the stocks in Piazza Affari, the behavior of those linked to the oil sector stands out, driven by the sharp rebound in crude oil prices.
Above all Tenaris (+4,83%), thanks also to the promotion of Equita, which assigned the stock a buy rating, with a target price rising to 11 euros from 9. For the period 2021-23, the broker estimates a rate average annual growth in turnover of 12% and ebitda of 20%. Experts believe the stock is well positioned in a scenario of economic growth and recovery in demand for oil services as global oil demand recovers towards pre-Covid levels.
Important purchases also on Eni (+2,56%) and Saipem (+2,06%). Prysmian, producer of energy cables, closes at +1,68%.
LVMH AND CHIARA FERRAGNI PUSH LUXURY
The luxury sector is traveling at the top, supported by the echo of Lvmh's performance. Purchases reward Moncler (+0,76%), Salvatore Ferragamo (+2,5%) and Brunello Cucinelli (+1,84%). Tod's march continues (+2%) under the pressure of Chiara Ferragni's entry into the board of directors.
Stmicrolectronics holds (-0,14%) thanks to the buyout of Bank of America: according to analysts, the stock has now discounted the effects of a possible revision of a contract with Apple and has large recovery margins.
STELLANTIS: A "LIGHT" PACT BETWEEN THE AGNELLI/PEUGEOT FAMILIES
On the eve of the first Stellantis meeting (-0,63%) the Agnelli and Peugeot families signed a "light" consultation agreement which does not include any obligation on voting rights but which strengthens the alliance between two groups with family roots.
L'AGRICOLE RELAUNCHES ON CREVAL: 12,5 EUROS PER SHARE
A few days after the tender offer deadline (April 21) Credit Agricole has relaunched its offer on Creval, bringing it to 12,5 euros per share.
Unicredit -1,2%. The Crt Foundation, a shareholder with 1,65%, will vote in favor of the proposal on the group's remuneration policies, which also include the economic treatment for the designated CEO Andrea Orcel at the next meeting on Thursday. Banco Bpm (-1,10%) and Bper (-1,13%) lose ground. Fineco +1,87%.
Generali (-0,1%) has started exclusive negotiations for the purchase of an Axa insurance company operating in the Non-Life business in Malaysia: value of approximately 300 million euro (Reuters).
BOUNCES TIM, LEONARDO IN THE EUROPEAN DRONE
Time +1,3%. According to two sources close to the dossier cited by Reuters.
Leonard +0,7%. Germany's budget committee has approved a three-billion-euro contract for the development of a European military drone to be built by Airbus, Dassault and Leonardo, according to Reuters.
CAMPARI BRAKES, AT THE TOP TINEXTA
The black jersey of the day was Campari (-1,72%) ahead of Enel (-1,2%) and Diasorin (-1,1%). New absolute record for Tinexta (+1,7%), good for Biesse (+4%), at the top since 2018.
TRENDEVICE +26,7%: LIKE THE SECOND-HAND SMARTPHONE
Sale Eles (+3%), global supplier of solutions for testing semiconductor devices following the promotion of a broker. TrenDevice shines after the accounts (+26,7%): the company that buys and sells overhauled smartphones and tablets has shown a 15% increase in EBITDA.
