The pendulum of the markets today swings on the side of the doves. The fear of a short-term change of course in central bank policy was largely reduced by the intervention of John Williams, the president of the most important Fed, that of New York, who argued that the American economy cannot yet afford to reduce stimuli. Christine Lagarde, a dove among doves, was even more decisive on the day Ursula von der Leyen arrived at Cinecittà to deliver the first virtual Recovery check to Italy. Has the inflation syndrome passed? Absolutely not, but the feeling prevails that, all in all, the phenomenon is under control, even if, here and there, the hawks' tail blows must be taken into account.
TOKYO (+3%) OPENS THE BARS FOR THE OLYMPICS
Tokyo (+3%) recovers this morning from the sharp fall of the beginning of the week. The government has given the green light to fully reopen Tokyo and Osaka ahead of the Olympic games, including the much-contested license to sell alcohol.
The Csi 300 index of Shanghai and Shenzhen (+0,6%) was more cautious. The Chinese government does not loosen its grip a few weeks before the celebrations for the centenary of the Communist Party. Today, Apple Daily, the only independent voice left in Hong Kong, could cease publication.
Cryptocurrency mines close at the request of the authorities. Bitcoin trades at $33, up from $65 at April's high but still up 11% since January.
BEIJING ATTACKING THE EVERBIG BUBBLE
The real crux concerns Evergrande, the largest real estate company on the planet, which is burdened with debts of 125 billion dollars which, in cascades, are investing illustrious partners and lenders, including the owner of Inter, Suning. Seven major domestic banks have decided to limit access to credit of Evergrande Group, a giant conglomerate of disparate businesses of all kinds, from healthcare to high-tech to real estate development, headquartered in Shenzhen. Over the past year, the stock of the super-leveraged company has more than halved.
NEW MICROSOFT RECORD AT WALL STREET
Wall Street futures were positive this morning. The S&P500 index rebounded 1,4% yesterday, the largest gain in five weeks. The recovery of the companies most sensitive to the economic cycle woke up the companies of the Dow Jones (+1,8%), which rose much more than the Nasdaq (+0,7%). But Microsoft has hit a new high.
The interest rate curve is once again flattening out: the spread between the yield on two-year and ten-year Treasury Notes has risen to 123 basis points.
Commodities are on the rise again: the Bloomberg Commodity index gains 0,5%, from yesterday's +0,7%, following last week's -2,9%.
WTI oil settles above 73 dollars a barrel, from +2,8% yesterday.
Gold At 1.789 dollars an ounce, +0,3%.
LAGARDE: THE STIMULUS DO NOT TOUCH. EUROSTOXX IN FLIGHT
The Eurostoxx 50 index chased away the ghosts of an unseasonable frost right from the morning: the rise then consolidated (+0,67% to 4.110.84%) after the positive opening on Wall Street. Despite the recent turbulence caused by the FED's decisions on rates, the performance since the beginning of the year remains very respectable: +15,70%.
The decisive push was given by Christine Lagarde, who yesterday, in her speech to the European Parliament, underlined that the pandemic continues to weigh on the euro area, adding, however, that growth could rebound faster than expected, given that consumers have recovered to spend.
"While the spread of virus mutations continues to be a source of risk, the brighter outlook for global demand and a faster-than-expected increase in consumer spending could result in a recovery even stronger".
However, the President added that it is not yet the time to allow an increase in interest rates: the ECB, therefore, will maintain favorable financing conditions because "a restrictive policy would be premature and would entail a risk for the current economic recovery". The hawks, Weidmann in the lead, are served for now.
THE EU PROMOTES THE ITALY PLAN WITH FULL VOTES
Despite the coupon effect (-0,23%), Piazza Affari closed the day with an increase of 0,71%, to 25.397 points, thanks to the acceleration in the finale.
A first evaluation on the Italian Pnrr arrived yesterday afternoon, promoted with a shower of A except (as also happened for the others) a B on costs. The final go-ahead for the first 25 billion is scheduled for today, while the green light should also arrive for the plans of France and Germany in the following hours.
The Pnrr will allow Italy to receive from the Community authorities around 70 billion euros in subsidies and 120 billion in loans.
DRAGHI-MERKEL: "ONLY FOOTBALL DIVIDES US"
Looking forward to receiving Ursula von der Leyen in the afternoon in Rome yesterday Mario Draghi met Angela Merkel in Berlin. A cordial meeting closed by a national-popular curtain: "Only football divides us - said the Chancellor". And Draghi nodded.
The most brilliant Stock Exchange was that of Frankfurt (+0,95%). The title at the top of the rankings since the beginning of January is also German: Volkswagen (+46%).
The other EU Stock Exchanges are more backward. Madrid just above parity.
VIVENDI, THE FUNDS AGAINST BOLLORÉ ON UNIVERSAL
Paris registers an increase of half a point. Vivendi (-0,24%) announced over the weekend the sale of 10% of Universal to Bill Ackman's Spac Pershing Square for 3,5 billion euros. Today the company's shareholders' meeting will decide on the distribution of 60% of the capital to shareholders, among which the Chinese Tencent and Vincent Bolloré's holding company stand out. But the activist funds will fight.
CONSUMPTION, SUPERMARKETS ARE BOOMING IN LONDON
London rises by 0,4%. Supermarket giant Morrison jumped 32% after rejecting an unsolicited $7,6 billion offer from fund Clayton Dubilier & Rice. Sainsbury's is also up (+4%).
BTP A 0,88%, SPREAD A 105
The spread between Btp and Bund closed down at 105 basis points against 111 on Friday.
The yield on ten-year BTPs, on the other hand, rose slightly to 0,88% (against the previous 0,8%).
COUPONS DO NOT STOP BUSINESS PLACE
Piazza Affari has overcome the obstacle of the coupons with impetus. The following stocks traded ex-dividend: Snam -3,70%, Terna -3,13%, Telecom Italia -0,11%, Exor +0,44%, Stm -0,87%, Pirelli +1,58, XNUMX% and Poste Italiane.
BRAZIL GIVES THE CHARGE TO STELLANTIS
The best stock was Stellantis (+3,37%). Equita raised the target price to 20,4 euro, confirming the rating buy on the title. Bestinver Securities also confirmed the rating buy on the stock, recalling that the company is continuing to strengthen its leadership position on the Brazilian market. The house led by Carlos Tavares achieved +2020% in sales in the period January-May 21, outperforming the entire market, which saw a decline of 19%. In the first quarter of this year, the automaker achieved net revenues of 2,10 billion in Latin America (5,7% of the entire group's revenues), mainly thanks to higher sales volumes.
PROMOTED TO CNH AFTER PURCHASE OF RAVEN
Cnh Industrial (+0,84%) recovers almost five percentage points from the lows of the opening, in line with the performance of Caterpillar (+2,5%), leader of the stocks value in New York. The company announced that it has entered into an agreement to acquire 100% of US precision agriculture technology company Raven Industries for $58 per share, which represents a 33,6% premium to the weighted average trading price of the latter four weeks, or $2,1 billion in enterprise value.
JUVENTUS UNDER FIRE, PRYSMIAN DISCOVERS AMERICA
Still in the Agnelli stable, the market spotlight on Juventus (-3,22%) after the advances of Sun 24 Hours on a capital increase of 3-400 million to be launched in the coming months.
In the rest of the list, Prysmian did well (+2,79%) after a 900 million order, the first on the United States market. Nexi also increased: the shareholders' meeting approved the merger by incorporation of Sia, to be completed by September.
UNICREDIT SALE, TAX BUMP FOR IFIS
Among the banks, Unicredit (+1,86%), Fineco (+1,43%) and Banco Bpm (+1,44%) shine.
Banca Ifis flies (+8,73%) after the holding La Scogliera communicated that it has started the procedures to transfer its registered office to Switzerland, subject to a positive opinion from the Revenue Agency: the transfer could have the effect of optimizing the bank's capital requirements.
AIM, THE POTS OF ILLA SHINE
The best headlines of the day also included Buzzi Unicem (+1,98%) and Webuild (+1,07%), which announced that it had been selected as the best bidder for the design of the Orsara-Hirpinia section of the Alta Naples-Bari speed. Illa in the spotlight in Aim (+11,17%); the cookware manufacturer celebrated a new order worth 3,1 million euros from an important customer who is a world leader in the cookware sector.
