Strong dollar and rising Treasury yields give comfort to equity markets, positive this morning in Asia as yesterday in Europe. Wall Street, still on record, today awaits the inflation data which will offer new impetus for central bankers' utterances: everyone agrees on the start of tapering (the interruption of securities purchases on the market), but there is disagreement about the times. For John Evans, of the Chicago Fed, it is better to wait a few more months to favor the recovery of employment. The majority, however, appear to be pressing for an announcement soon. In the background looms the totonomine at the top of the central bank: the Wall Street Journal writes that the party that asks Joe Biden not to confirm Jerome Powell is growing. Interest rates have nothing to do with it: the left wants the Fed to have a more rigid president vis-à-vis the big banks, a bit like what is happening for the Antitrust on the giants of the web.
THE US SENATE SAYS YES TO THE 550 BILLION PLAN
Meanwhile, Biden has won a political victory: the Senate voted yesterday evening on the spending plan for the renewal of US mobility and telephony infrastructure. The package, on paper, is a trillion dollars, but just under half of it is money already earmarked for other things and redirected into this bill. Fresh resources are equal to 550 billion dollars. Excellent news for Italian companies, ready to seize the opportunity (Prysmian, for example), but we will still have to wait. Democrats have said they will say yes only if Republicans agree to give their support to a series of other measures under discussion, namely a plan of enormous dimensions, 3.500 trillion dollars, intended to fight poverty and the environment.
FUTURE DISHES, TREASURY AUCTION UNDERWAY
Flat Wall Street futures watch without much participation in the political confrontation. The Dow Jones rose 0,46% last night on a boost from energy and basic materials companies. The S&P 500 moved little (+0,10%). The Nasdaq was negative (-0,49%).
Today's highlight is the auction of 41 billion dollars of 1,36-year bonds, traded yesterday at 1,30%, from XNUMX% at the beginning of the week.
The euro-dollar cross is little moved, at 1,172.
SOFTBANK SUSPENDS INVESTMENTS IN CHINESE TECH
In Asia, the Tokyo Stock Exchange stands out this morning (+0,5%). The Japanese government has communicated that it has reached one hundred million doses of vaccine inoculated, with a percentage of total coverage of people over-65 of 81,6%, higher than that of the United States in the same age group.
Hong Kong's Hang Seng is up 0,2%, the CSI 300 of the Shanghai and Shenzen exchanges are at parity.
Softbank has announced the suspension of its investments in Chinese tech pending indications on Beijing's line on investments in technology.
KOREA: CONTAGIONS RISE BUT UNEMPLOYMENT DOWN
Seoul's CSI 300 down 0,4%: in South Korea, new infections have reached a new record: in July, the unemployment rate fell to 3,3%, the lowest since the beginning of the year.
WTI oil is down 0,2% to $68,2, after closing yesterday evening up 2,7%.
HOLDING DOWN THE ZEW INDEX, THE SUC DRAILS EUROPE
The march towards August 40th of the European markets proceeds smoothly, with slight progress awaiting today's data on US inflation. The slowdown in the Zew index, based on short-medium term expectations, which dropped to 63 from XNUMX in July, does not weigh heavily. This is because, welcome news, the role of the locomotive has temporarily decreased towards the South.
According to Eurostat estimates, the euro area's GDP grew by 2% in the second quarter, reaching a level 13,7% higher than in the same quarter last year. There are only 3 percentage points left to recover the pre-pandemic level of GDP, a realistic goal "thanks to the faster and more intense expansion than most economists expected led by Italy, Spain and Portugal", writes Matteo Ramenghi of UBS.
GOLDMAN RAISES ESTIMATES ON EUROZONE EQUITY
Goldman Sachs, meanwhile, says it is focusing on European equities, as stock valuations have not stood up to an upward revision of earnings estimates not seen for twenty years. For this reason, the strategists led by Sharon Bell raised the targets of the Stoxx 600 index to three months (480 points), six months (500 points) and twelve months (520 points). Goldman Sachs predicts that average earnings per share in 2021 will be 15% higher than in 2019, but expresses some caution on 2022: growth of 7% is estimated for next year, down from the previous +11%.
PIAZZA AFFARI (+0,24%) UPDATE THE RECORD
In this context, Piazza Affari updates its record from 2008 to 26.201 points (+0,24%). The other price lists are also positive. Frankfurt climbs 0,15%; Paris +0,1%; Madrid +0,33%; Amsterdam +0,43%; London +0,4%.
Irish mobile gaming and betting company Flutter Entertainment was up 9% after the release of quarterly data.
Deliveroo's rally continues in the London stock market (+7%), up after it was learned of the entry into its share capital of the German Delivery Hero.
Down in Paris Air France-KLM (-2%) after the US invitation not to travel to France, due to the pandemic.
TODAY AUCTIONS OF BTP, BUND AND US TREASURY. SPREADS DOWN
The bond market moved little, awaiting today's auctions on the annual Bot and on the Bund. Spotlights also on the US market. Today the US Treasury is auctioning 41 billion dollars of 27-year government bonds, while on Thursday there is the placement of XNUMX billion dollars of XNUMX-year paper.
The spread is 101 basis points, from 102 at the previous close. Even the 0,55-year rate stands at 0,56%, on the opening level, after closing at XNUMX% the previous session.
ENVIRONMENT AND OIL PUSH MILAN
The effect climate change it is also felt on the Italian price list. It advances after the Falck Renewables accounts (+2,80%), promoted by Mediobanca securities (target at 6,2 euros).
Prysmian goes up (+1,36%, to 31,40 euros), after improving its all-time high during trading to 31,76. The forecasts on the expansion of the cable industry made by CEO Valerio Battista pushed the title. According to Equita, the stock is at a discount compared to its European competitors "and is well positioned on the megatrend of energy transition".
Oils also rebounded on the wave of the recovery of Brent: Saipem +2,61%, Eni +0,64%, Tenaris +0,6%. Leap by Saras (+2,9%), sensitive to any change in refining margins.
LUXURY SHINES, MONCLER ACCELERATES
Brilliant luxury: Ferragamo (+1,6%) consolidates gains on the eve (+6,6%); Moncler scores an increase of 2,8%.
Banks sold after recent snags. Bper falls 0,6%, Bpm -1,3%. The reversal of Pop Sondrio (-2,75%) is more conspicuous.
DBRS SOUNDS THE ALARM ON MPS BONDS
Contrasted Mps (+1,2%). The DBRS rating agency downgraded its subordinated debt rating to CCC from B(low) due to the increased risk that these bonds could be subject to a downgrade (or burden sharing) in the context of the potential acquisition of the Sienese institute by Unicredit. The effects of the downgrade can be seen on the three subordinated bonds of the Sienese bank, all decreasing in the various maturities.
Fineco Bank (+0,7%) set the fourth consecutive historical record.
WeBuild +0,3%: the subsidiary Cossi Costruzioni was the best bidder for three new contracts commissioned by Autostrade per l'Italia, for a total value of 210 million euro.
Buzzi Unicem was also in the spotlight (+0,65%) in view of the vote in the United States Senate on the 1.000 billion dollar bipartisan bill on infrastructure.
INTESA REWARDS SALCEF ACCOUNTS, INTEK SALE IN GERMANY
Salcef advances (+3,26%) in the wake of the positive comments from analysts after the second-quarter accounts exceed expectations. Intesa Sampaolo raised the target price on the stock from 16 to 18,6 euro, confirming the add rating.
Among the minor stocks, Intek performed well (+2,9%) after the purchase of part of the flat rolled segment of the German group active in the supply of non-ferrous metals and copper recycling.
AIM, ULISSE BIOMED AND NUSCO DON'T STOP ANYMORE
In Aim, Ulisse Biomed (+27%) reaches a new high of 5,10 euros, from the 2 euro price. Nusco also runs (+24%) after Edilizia Acrobatica (+5,77%) enters its share capital.
