Stock exchanges in Asia are gaining momentum, galvanized by data on the US labor market released on Friday. Leading the race is Tokyo (+1,3%), where some big names in technology such as Tencent and Taiwan semiconductors stand out. Chinese markets also rose: Hong Kong +1,5%, CSI 300 index of Shanghai and Shenzhen stock exchanges +0,7%.
For now, the markets have chosen to ignore the growing tensions on the tariff front that emerged in the G7 of finance ministers: six countries have delivered a letter of "concern and bewilderment" addressed to Donald Trump to Treasury Secretary Stephen Mnuchin. Nothing happened even in the meetings in Beijing between the American team and the Chinese counterpart who threatened to disrupt the negotiations: the trade war is increasingly likely.
Meanwhile, the US president is preparing for the meeting with North Korean leader Kim on Tuesday 12. Trump will be in Tokyo on Thursday.
OIL BELOW $77. INCREASE US PRODUCTION
Brent oil is trading at 76,6 dollars a barrel this morning, down 0,7%. This morning Bernstein raised his estimates on the average price of Brent oil, bringing them for 2018 to 73 dollars, from the previous 56 dollars a barrel. Reason for revision: World oil inventories are low, will continue to fall.
Saudi Arabia and its allied crude-producing countries met informally over the weekend in Kuwait City, probably in view of the OPEC assembly in Vienna at the end of June. At the end of the meeting, they issued a statement emphasizing the need to increase investment in the search for and exploitation of petroleum resources.
Meanwhile, in the United States, mining activity is feverish, last week, there were 861 active drilling rigs, the highest since March 2015.
The euro depreciates this morning to 1,165 against the dollar, after closing the week with a very slight rise, in the previous six it has lost ground against the dollar.
MUSTIER AIMS FOR A MERGER AMONG EQUALS
In the spotlight this morning in Piazza Affari the alleged merger between Unicredit and Socgen, aired with great prominence by the Financial Times. According to the City newspaper, the CEO Jean-Pierre Mustier and some managers of the French bank are actively working on the integration between the two institutions, facilitated by the similar size (32 billion Socgen, 33 Unicredit). But the deal, not confirmed by Unicredit and denied by the French partner, will not be able to see the light, admits the newspaper, before 18 months, that is the time necessary to liquidate the Italian bank's non-performing loans and the fines that the USA are preparing to ask to the French. But despite the denials, the negotiations, which have been talked about for 15 years, have restarted in any case.
FCA TESTS THE REBOUND, BRAZILIAN TENDER OFFER FOR ENEL
The performance of Fiat Chrysler should also be followed in Milan after the sharp drop on Friday +4,5% coinciding with the group's Investor day. The company promises to bring its margins up to over 10% and to close 2022 with a positive industrial net financial position of around twenty billion.
Spotlight on Enel: tonight the time is up for the award of the Brazilian Electropaulo.
Positive forecasts for the opening of European lists.
Piazza Affari is called to continue the recovery started on Friday. In May, under the pressure of political events, the list lost 9,15%. The spread with the 220-year Bund restarts from 2,60, with a XNUMX-year yield at XNUMX%.
The markets were also moved by the Madrid Bolsa, after the turnaround that brought the socialists back to government (+1,8% on Friday's rebound).
ANGELA MERKEL OPENS (PARTLY) ON THE MACRON FLOOR
On the macro front, the Eurozone services PMI data (Tuesday) should be followed during the week. The final figure for EU GDP for the first quarter will be communicated on Thursday.
Eurozone diplomacy is moving with difficulty in anticipation of the EU summit at the end of the month, the first real test for the new Italian government. The reforms of the euro area will be at the center of talks today between Mario Draghi and Angela Merkel. In an interview over the weekend, the chancellor showed herself to be cautiously in favor of most of the reforms on the EU formulated by Emmanuel Macron in view of the summit at the end of the month.
APPLE UNITES APPS, FACEBOOK NEW ACCUSATIONS
On the Wall Street front, attention is focused on Apple. Apple's annual App and Hardware Developers Conference begins tonight. According to Reuter, the main innovations will concern Artificial Intelligence. The market is wondering if the conference will give the push to bring the stock beyond a thousand dollars.
Facebook still in the crosshairs on the privacy violation front: according to the New York Times, over time it would have entered into agreements with at least 60 manufacturers of smartphones, tablets and other mobile devices, allowing them to access the personal data of thousands of users and their 'friends' without explicit consent. Among the groups with which Mark Zuckerberg's giant in the last ten years has signed agreements are Apple, Amazon, BlackBerry, Microsoft and Samsung.
