The US stock markets closed in the red for the second day in a row, but market moods remain positive, for several reasons. First, the tariff framework agreement with China could be announced this afternoon. Secondly, operators are thinking of reaping the benefits of a positive season (+16% since the beginning of the year) before setting off again. But the animal spirits of the market are more alive than ever, as confirmed by the 16 IPOs (including Uber) on the waiting list for the next few weeks, which are unlikely to beat the record set yesterday by Beyond Meal, a vegan burger maker that debuted with a stellar +163%.
THE US LABOR MARKET TODAY, WAITING FOR THE TLTRO
The European price lists are much more cautious, partly due to the uncertainty of the political situation twenty days after the vote, partly because the news coming from the economy, less bad than feared, could influence the decisions of the ECB on the LTTRO, the key data for the Italian debt: if the loans granted to the banks will be at a very negative rate, the banks will be pushed to buy BTPs with a view to carry trade, that is, they will stock up on paper to be delivered to the Central Bank, in exchange for the loans at a negative. It will probably be Mario Draghi's last “gift”.
Celebrations continue in Japan for the beginning of the Renwei era after Emperor Naruhito's accession to the throne. Long bridge also for Chinese price lists. The Korean Kospi loses hits (-0,3%), Sydney climbs (+0,2%).
The only changes concern the fall of the Australian dollar below the barrier of 0,70 against the US currency and the parallel fall of the kiwi dollars of New Zealand. The market is betting on the two southern hemisphere nations' interest rate cuts.
TESLA, SURPRISE, LAUNCHES CAPITAL INCREASE
The US stock markets were also in the red, awaiting the data on the labor market to be released today: Dow Jones -0,46%, S&P 500 -0,21%, Nasdaq -0,16%.
Among the best titles Qualcomm (+0,9%) which will pocket 4,9 billion for Apple and which seems well positioned to exploit the 5G market. The black jersey goes to the chemical giant Dow (-6,1%).
"Tesla he gave up his spartan diet”. Thus, in his own way, Elon Musk announced that the house of the electric car (+ 5%) is about to ask the market for 2,3 billion dollars.
Donald Trump's candidate for the Fed, Steven Moore, has decided to give up the candidacy given the rain of no from the Republicans in Congress: Moore, accused of sexual harassment, is the author of the book "Trumponomics, the secret of success".
STOCKS RISING, THUD OF SAIPEM
The drop in price lists is to be linked to the sharp drop in oil prices, dragged down by the increase in inventories. Brent falls to 70,54 dollars a barrel, after a 3% drop.
In sharp decline in Piazza Affari Saipem (-4,14%) and Tenaris (-2,87%).
MILAN IN RED AFTER THREE RAISED SITTING
The better-than-expected economic data did not support the Old Continent's price lists conditioned by the US declines.
Piazza Affari interrupted its positive streak of three sessions: the index (-0,78%) closed at 21.785 points.
The PMI index on the expectations of purchasing managers of Italian manufacturing companies rose to 49,1 from 47,4 in April after three months of decline. The worst Stock Exchange is Madrid (-1,55%); fractional losses for Paris (-0,85%).
LONDON RAISES GROWTH ESTIMATES
London -0,46%. The Bank of England revised its growth estimates upwards to +1,5% from 1,2% but warned that Brexit continues to bleak the outlook for monetary policy. Interest rates for now remain unchanged at 0,75%.
VOLKSWAGEN AND BAYER FLYWHEEL
The best square is Frankfurt, unchanged, supported by Volkswagen (+3,81%), after the presentation of the first quarter results. Operating profit of €3,9 billion, in line with expectations. Revenues at 60 billion euros, expected 58,2 billion. The company has confirmed its targets for 2019.
Highlights too Bayer (+4%). The US health authorities have reiterated that glyphosate is not carcinogenic, the pronouncement comes after two verdicts in California, where the opposite is stated.
THE SPREAD CLOSE TO 250
Final down for debt securities. The BTP, which rose in the morning after the PMI data, returned to Tuesday's levels on thin volumes.
At the end, the 2,55-year rate settled in the 2,54% area, compared to the 2,56% reached after the PMI and the XNUMX% at the final on Tuesday.
The spread stopped at 253 basis points, from 251 reached after the PMI and 255 at Tuesday's closing. We're about 20 basis points down from two weeks ago levels.
FCA AUTHORIZES THE MARELLI EXTRA DIVIDEND
Looking forward to the results out today, Fiat Chrysler it lost 1,34%. The company confirmed the sale of Magneti Marelli for 5,8 billion euros, authorizing the extra dividend of 1,30 euros per share. In the US, its brands were down 6% year-over-year in April, to 173.000 units. Bad Jeep (-8%). Good Ram (+25%). Fiat Chrysler loses 1,8%. The company confirmed the sale of Magneti Marelli for 5,8 billion euros, authorizing the extra dividend of 1,30 euros per share. Retail sales slow down to -12%, those to corporate fleets rise to +15%.
FDA SENDS IMA AND GIMA INTO ORBIT
Glory day for Ima (+ 5%) and Gima (+29%). The Food and Drug Administration (Fda), the American federal body that supervises the market of food, alcohol and tobacco products, has given the first authorization for the sale of Iqos in the United States. These are the new "cigarettes" that heat the tobacco instead of burning it, produced by Philip Morris. Gima is one of Philip Morris' suppliers.
GUIZZO DI SAFILO, WEAK CUCINELLI
It also flies sapphire (+17,8%) after the CEO's declarations in last week's shareholders' meeting, according to which the company is on the right path for a relaunch.
Among the banks, Understanding (-0,43%) absorbed Berenberg's "sell". They correct FinecoBank e B for Bank, by 2,64% and 1,61%, respectively.
Weak luxury. Brunello Cucinelli -3%. Jeffreries cuts recommendation to Hold. The same broker raises the target price by Moncler -1%) and cut the judgment on Ferragamo to Underperform (-3%), nullifying the earnings following the promotion of Main First.
