And after the fear came the numbers. The data on consumer prices in the United States will be released today at 14,30 pm, the first concrete check on the inflation syndrome that is affecting the markets. The forecast speaks of an increase of one point in April: +3,6% year on year, from +2,6% in March. A lot or a few? When in doubt, US Bose futures are in the red this morning. But yesterday evening the selling on the Nasdaq, hitherto down 2%, suddenly stopped, allowing for an almost even closing (-0,09%). Similar script in Europe: Isabel Schabel, a German member of the board of the ECB, predicts a price increase of more than 3%, but she doesn't make a fuss about it. And the Ifo points out that, for now, confidence in the recovery prevails over fear of pressure on prices. In summary, meteo Borsa signals a cautious start, but not a trend reversal.
SOFTBANK, PROFITS OF 45 BILLION DOLLARS, NISSAN COLLAPSE
In Asia, Tokyo's Nikkei lost 2% on a day packed with corporate events. Softbank, the colossus of Masayoshi Son, is about to announce profits of 45 billion dollars, inferior only to the numbers of Apple and the Saudi Aramco.
Nissan collapses (-12%) after failing to meet growth targets. Toyota flies after quarterly profits of $6,34 billion, 92% more than the same period last year. The auto giant, unlike its competitors, does not suffer from lack of chip supplies.
Only a slight decrease for the Hong Kong Hang Seng and for the CSI 300 of the Shanghai and Shenzen price lists. Seoul's Kospi fell 2%, Mumbai's BSE Sensex 0,7%.
Taipei's Taiex index tonight came to mark a decline of 8%, with its big names in the chip industry falling, this morning the negative variation is less heavy, -5%.
STOP THE FALL OF THE NASDAQ, THE DOW SUFFERS
The US indices are very contrasted. The Dow Jones loses ground (-1,36%), below the S&P 500 by one percentage point. But some Big names in the Nasdaq (Apple, Amazon, Facebook and Tesla) have recovered losses of more than 2%. Catie Woods, of Ark, the financial arm of Elon Musk, says she is calm: "In recent years we have experienced 4/5 worst storms".
The debate on inflation is increasingly heated, in the face of an increase in the cost of raw materials. Bank of America believes that companies are able to pass the increase in prices downstream, taking advantage of the fact that consumers are swollen with liquidity: both because they have saved in recent months and as a result of aid from governments.
WORK AND RAW MATERIALS PUSH UP PRICES
But the debate on the cost of labor is being felt. Employment rises much less than expected, despite the increase in supply from companies. Blame too generous state subsidies ($300 a week), say the Republicans, suggesting a cut. Blame too low minimum wages, unchanged since 2009, is the reply of the radicals. “Raise your paychecks and everything will work out,” is Bernie Sanders' warning.
PALM OIL AT THE HIGHEST EVER
Meanwhile, the race for raw materials continues, with the Bloomberg Commodity index once again at its highs for the period. In the last few hours, natural gas has been pulling the energy sector; among metals, copper; among agricultural raw materials, corn and palm oil, rose to an all-time high tonight in Kuala Lampur.
WTI oil barely moved at $65,2 a barrel, even though the crisis caused by the hacker attack on the pipeline is still ongoing.
The 1,63-year Treasury Note trades at XNUMX%.
The Bund (at -0,17%) and the Btp (a step away from 1%, 0,99%) opened the day at period highs.
EUROPEAN EXCHANGES IN RED, BUT CONFIDENCE GROWS
“In Germany we expect inflation to exceed 3%”. Isabel Schnabel, a German member of the board of the ECB, however, is not frightened by the prospect of a new disturbing signal on the price front: "It is known that perceived inflation can actually be different from that measured by the data". And then the acceleration shouldn't be lasting. If it were, the ECB "will react carefully by adjusting the measures available". Schnabel's optimism on a difficult day is justified by data from Zew: the index on investors' growth expectations rose to 84,4 points in May, compared to the previous 70,7, well above estimates of economists aiming for an increase to 72 points. The Dutch member of the ECB, Klaas Knot, a well-known hawk, is also optimistic: “I believe that the outlook is quite positive, more than what has been seen for a long, long time. I think there is significant upside risk and that has to do with the build-up to demand.”
MILAN -1,64%, LONDON THE WORST
Piazza Affari, under a flurry of quarterly reports, closed down by 1,64%, at 24.396 points.
Surprisingly, Italy's industrial production fell in March, with moderate growth in the first quarter. Production grew by 0,9% compared to -0,4% in the previous quarter, with February and March substantially stationary after the consistent growth in January.
The decline was even more marked in London (-2,47%), Amsterdam (-2,24%), Paris (-1,86%), and Frankfurt (-1,82%). Madrid (-1,68%) is in line with Milan.
European tech stocks close in deep red, at six-week lows. Miners gave up some of the strong gains accumulated in Monday's session in London.
Severe setback also for stocks linked to travel and leisure, which leave 4% on the ground.
MARKET RACE TO THE FIRST GREEN BUND
Germany has placed 6 billion euros of 30-year Green Bunds in the first bond issue of its kind. Orders for the new Bund with 0% coupon maturing August 2050 reached 38.9 billion.
THE 1-YEAR BTP RETURNS TO XNUMX% AS IN SEPTEMBER
Stable closure for the spread between Btp and Bund in a day of strong sales for all Eurozone bonds. In the final stages, the yield differential between the BTP and the Bund stands at 114 points (against 115 on the eve). Up 5 points, the 0,99-year yield stands at 1%, one step away from the 2020% threshold last touched in September XNUMX.
The mid-month auctions kick off tomorrow with the placement of the annual Bot, whose yield has seen little change compared to the -0,436% in mid-April.
Thursday appointment with medium-long term placements which will see a maximum offer of 9,25 billion euro in three 3-year and 30-year BTPs in addition to the new 7-year bond.
BANKS OK. BUYBACK FOR UNICREDIT, MEDIOBANCA AT THE TOP
Only the banks weather the storm. Among the few stocks to close in positive territory is a poker of credit institutions: Banca Bpm +0,99%; Unicredit +0,99% to the highest for 14 months, today kicks off the buyback (178,7 million); Bfor +0,9%; Mediobanca +0,21% protagonist of an excellent quarterly: profits doubled to 193 million, far above expectations. In the nine months profit was equal to 604 million (+9%). Alberto Nagel ruled out the possibility of a merger between the two institutes (as for any marriage between commercial bank and investment bank). On the contrary, the CEO of Mediobanca expects mergers between Italian banks in the next 12 months and, as far as Piazzetta Cuccia is concerned, he has not ruled out growing in wealth management.
MANAGED IN RED: FINECO -1,80%
A minus instead for asset management companies after the financial statements: Finecobank (-1,80%) closed the first quarter with an adjusted net profit of 94,7 million; Banca Mediolanum -0,39% after closing the first quarter with a net profit of 133,4 million (+85%).
Holds Tim (-0,09%). Berenberg raised the target price to 0,48 euro from 0,38 euro, confirming the hold rating.
FERRAGAMO, ENOUGH WITH RED. THE RECOVERY IS “VERY STRONG”
Salvatore Ferragamo, thanks to an incisive cost cut, closed the first quarter with an operating profit of 7,8 million euros, a strong recovery from the loss of 36 million euros in the same period of 2020. Analysts were expecting another quarter in loss. Revenues rose 10% to 244 million euros. During the conference with analysts, executives said that overseas, especially in Asia and the United States, the recovery is very strong.
STM SUFFERS, IN CNH INDUSTRIAL RETIREMENT
Among industrialists, Stm (-3,37%) is in deep red. Even worse Cnh Industrial (-3,96%) and Amplifon (-4,11%). Stellantis (-2,9%) and Ferrari (-1,66%) are also under fire. Brembo also lost ground (-2,27%), albeit promoted by Intesa Sanpaolo from hold to add, with a target price of 12,2 from 11.
ENEL INCREASES THE GREEN DEBT IN THE USA
Enel -2,54%. The value of the Commercial Paper issuance program rises from 3 to 5 billion dollars. For the first time, the program on the US market is linked to the United Nations Sustainable Development Goal (SDG) 13 (Fight against climate change).
SARAS BOUNCES, PARTIAL TENDER OFFER FOR CIR (+1,6%)
Among the mid caps, Saras rose (+4,37%), in the wake of the accounts for the first quarter. Cir also did well (+1,59%): the company announced a partial voluntary public offer on 12,3% of its capital at 0,51 euro for a total potential outlay of 80 million. On the AIM money on Ki Group (+8,95% at 0,2 euro): Integrae Sim has started coverage with a buy rating and a target price of 0,62 euro on the company that distributes organic products.
