In anticipation of the now imminent IPO of Uber, the duels between the big names in technology are once again dominating the attention of the markets, for the rest nailed by worries for the Eurozone, which is on the way to losing (perhaps at the worst moment) the leadership of Mario Draghi. The euro paid the price for it, slipping to 1,1133 against the dollar, its lowest since the spring of two years ago. But the bet on the stars and stripes economy is also supporting the US currency. According to the forecasts of the Atlanta Fed, the first quarter GDP data, released in the afternoon, should confirm an increase of 2,7%, a sharp rise compared to the latest estimates by the central bank, but in line with Donald's forecasts Trump, who insists on having his candidate on the board.
But the markets' attention was focused on the yen, which rose sharply against the dollar to 111,51 (+0,7%) on the eve of the holidays which will stop the Japanese market for six days: the operators, frightened by possible speculative manoeuvres, they have filled up on Asia's strong currency, even as the Japanese government insists that Tokyo's monetary policy will not change. Just as there shouldn't be any surprises in sight for the Fed, which is due to meet this week. And for the ECB, Vice President Luis de Guindos reiterated that, if necessary, the liquidity links will be further loosened.
JAPAN'S GROWTH HOLDS BACK, KOREA'S GDP DISTURBS
The Tokyo Stock Exchange loses 0,7% this morning. Industrial production of Asia's second economic power in March recorded a decline of 0,9% month on month, from +0,7% in March: the consensus expected zero. Inflation, due to the rise in oil prices, rose by 1,4% year on year in April, more than expected. March consumption is slightly above forecasts: retail sales +0,2% month on month.
The Shanghai Stock Exchange loses 0,7%. Hong Kong's Hang Seng is on par. Seoul's Kospi loses 0,7%. The won, the Korean currency, is at its lowest since mid-2017 against the dollar. In the first three months of the year, Korea's GDP recorded an unexpected contraction of 0,3%, against the +0,3% estimated by economists.
MICROSOFT OVER A THOUSAND BILLION, COLD NASDAQ WITH AMAZON
A completely different energy on the American price lists, which yesterday celebrated the entry of Microsoft (+3,3%) in the club of securities that have exceeded the threshold of one trillion in value. But the excitement was soon overtaken by the exploits of Facebook (+5,8%) after the excellent data of the quarter. But the surprises weren't over. Amazon has once again managed to impress: profits have more than doubled, to 3,56 billion dollars, thanks to the boom in cloud services. After the Stock Exchange, the stock rose by 1,7%, but analysts, who cannot be satisfied, curb enthusiasm, because revenues are down for the fourth quarter in a row.
FALL 3M
The energy of the tech sector, however, hasn't heartened US price lists too much. The Dow Jones loses 0,51%, the S&P 500 only 0,04%. The Nasdaq is up 0,21%.
Industrial stocks, especially 3M (-13%), after the announcement of the cut of 2 jobs. Ups and Fedex are down sharply.
Not all tech shines: Intel left 7% on the ground.
OIL RISING, BUT SUFFERING ENERGY
He took profits on oil after yesterday Brent exceeded the threshold of 75 dollars a barrel for the first time in six months. In addition to the embargo against Iran, some setbacks weighed on the Russian oil market: Poland suspended purchases of Russian crude oil due to some supply defects.
But there are no particular benefits for oil companies in Europe, given that the sector index loses 0,2%. Eni -0,3% Tenaris -2,6% and Saipem -0,8%.
DIAMONDS IN BOTSWANA, TEARS IN ARGENTINA
On the raw materials front, the most precious news comes from Botswana: the Canadian Lucara Diamond has announced the discovery in its Karowe mine of the second largest stone on the planet: a 1,758-carat diamond, bigger than a tennis ball.
Argentina's crisis worsens: the Merval index (yesterday -3,5%) lost 15% in the last month. The weight falls, reaching levels never seen in history on the dollar. The yield on the 11,8-year Argentine bond jumps to 35% (+XNUMX basis points). In recent weeks, the markets have begun to factor in a defeat by current President Macrì in this autumn's elections. A return of Cristina Fernandez de Kirchner is looming.
THE EURO SUFFERS. ITALY PUT THE EURO AREA AT RISK
The prospects for the Eurozone are far from brilliant, as emerge from the Economic Bulletin of the ECB. With the imminent change of the guard in Frankfurt between the chief economist Peter Praet and Philip Lane and, above all, with the approaching end of Mario Draghi's mandate, the veils of diplomacy are falling. “The growth prospects – we read – are undermined by downside risks due to the persistent uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets”. But the internal factors are no less important. Hence a stick to Italy: "There is no margin to avoid a tightening of budgetary policies in the next phase of slowdown". A situation which, is the final warning, "may have consequences on the resilience of the entire euro area".
THE SPREAD RISES, ITALY AND GREECE CLOSER
Thus the fall of the euro continues to its lowest level since mid-2017 at 1,114 against the dollar. And the tension on the Italian paper rises further, pending the update of the Standard & Poor's rating scheduled for Friday.
Thus the spread between the BTP and the Bund on the ten-year stretch increased, to 271 basis points, on the highs of the session since the end of February, from 264 on the eve.
Meanwhile, Italy is ever closer to Greece: the spread between the two government bonds, on 10-year maturities, is 65 basis points, a level not seen for ten years.
The 2,69-year yield is at 2,63%, from XNUMX% at the last closing.
The Milan Stock Exchange closed flat: Ftse Mib index -0,02% at 21.719 points.
London -0,5% and Paris -0,33%. Fractional earnings for Madrid (+0,52%) and Zurich (+0,4%).
NOKIA WEIGHTS ON TECH. DOWN STM
Despite the rise of the Dutchman Asml (+7%) the tech sector closed in the red. The landslide caused the decline Nokia (-10%) after the presentation of the data for the quarter, which unexpectedly closed with a loss (254 million euro). Weigh on instead stmicroelectronics (-2%) the descent of Intel. Equita today cut the Italian-French group's recommendation to Hold, target price to 16,8 euros from 18.
SKIP DEUTSCHE-COMMERZ: SPOTLIGHT ON UNICREDIT
The failure of the negotiations for the merger between the German banks was reflected in the banks of the Old Continent. in Frankfurt Deutsche Bank lost 2% e Commerzbank it closed down 3%. Negotiations between the two banks, in view of a possible merger, ended without results.
The incident also had consequences for Unicredit (-0,45%), already credited with a possible interest for Commerzbank. The issue was revived by the declarations of Lyxor asset management, a shareholder of Commerzbank, which opened the hypothesis of involving the Italian bank or Bnp Paribas in a merger with the Bavarian institute.
Bounce the Juventus (+8,82%): the stock touched an important technical support at 1,22-23 euro and from that level it restarted.
Lively asset management, with the lead General Bank (+2,85%), ahead of Azimuth (+ 2%) and Anima (+0,85%) thanks to the good collection numbers.
Well finally the utilities: Snam recorded a +1,19% together with Terna (+0,86%) ed Enel (+ 0,62%).
Italgas (+0,43%) was awarded the tender for the management of the natural gas distribution service in the “Turin 2” area for the next 12 years.
