“Make America Strong Once Again” is the message launched by probable next US vice president, That JD Vance already indicated by Donald Trump, enriched in the first official release by quotes from Saint Augustine, with particular references to foreign policy. Meanwhile at the Republican Party convention in Milwaukee, former President Trump has officially accepted the candidacy for the presidential elections Usa. Trump made a call for unity, but then added that he wanted to fight immigration, closing the border with Mexico, and wanting to reduce debt and taxes.
Stock market 19 July, what's happening in Europe: politics
While in, the European Parliament re-elected Ursula von der Leyen at the helm of the European Commission. There were 401 votes in favour, 208 against, 15 abstentions and 7 invalid votes. For the election, an absolute majority of the members of Parliament was needed, i.e. 360 members out of 707. Fratelli d'Italia voted against after the favorable vote of the Greens was made official, which added to that of the popular, socialists and liberals and compensated for the vote of the snipers.
The premier Giorgia Meloni he motivated his party's vote by "not sharing the method and merit" and said that this will not compromise the collaboration between the Italian government and the Commission. The Democratic Party has requested urgent information from the Prime Minister in Parliament to explain how she managed the vote. Congratulatory messages, however, arrived from French President Emmanuel Macron and German Chancellor Olaf Scholz, who spoke of a "clear sign of our ability to act". Now theItaly sees the budget delegation and an executive vice-presidency disappear, but second Carlo Fidanza, head of FdI delegation to the European Parliament, Italy will not remain isolated.
Stock market July 19th, uneasiness about Big Tech
Let's leave politics aside. Contributing to depressing investor confidence was the Beige Book of the Federal Reserve (Fed) relating to the period up to 8 July, which revealed a weakening of the US economy. As many as 5 of the 12 districts into which the country is divided have in fact indicated flat or declining economic activity. Meanwhile, in June industrial production grew in the US by 0,6% sequentially, slowing down compared to 0,9% in May.
But in the meantime Wall Street has already unreservedly embraced the creed of JD Vance, Trump's probable next deputy promoted as a strongman of the new right, isolationist, in love with the steel-based economy but who distrusts chips. The result? The Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Nvidia, Microsoft and Tesla) burned $527 billion in capitalization on Wednesday on Wall Street and $1.113 billion in the last five sessions.
On the contrary, for American mid and small caps a particularly favorable scenario opens up. On the one hand, in fact, macroeconomic conditions and price dynamics are convincing the Fed to continue with rate cuts (as also expressed by some members of the American Central Bank recently). In fact, the market is now back to pricing around two cuts this year. On the other hand the Russell 2000 would also draw strength from the US political scenario, with Trump now given a great advantage over the outgoing president Joe Biden. According to Goldman Sachs, his slogans aim to revive American companies and suggest that his return to the White House will favor the prices of small-cap companies.
Se Nvidia was among the worst stocks (its decline was 6,64%), the sharpest collapse of the year Nasdaq it was however of Asml Holding, that after losing 7,65% in Amsterdam it plunged 12,74% in New York. According to Bloomberg, Joe Biden's administration has communicated to allied countries that it is considering the possibility of applying even more severe trade restrictions on exports of chips and machinery to China for their manufacturing.
Putting further pressure on the semiconductor sector, Trump refused to provide guarantees that the US will continue to protect Taiwan from the threat of China if it regains the White House in November.
The rotation concerns more cyclical and less cyclical stocks linked to the AI boom. Investors may shift capital away from high-growth technology stocks into more traditional, cyclical sectors. Indices like the S&P 500 Equal Weighted or the Russell 2000 could see a relative improvement compared to the traditional S&P 500, dominated by tech giants. In the bond market, yields are expected to fall and prices to rise.
On Wall Street, sector rotation leaves its mark, with a general decline: Nasdaq -2,4%, worst session since December 2022, S&P500 -1,1%. Dow Jones going against the trend at +0,3%. The Index Russell 2000 of the mid/small caps lost a modest -0,5%, after a strong +11% in five sessions. As is evident they were above all Big Tech to be targeted of sellers: FANG Plus -3,3% Bloomberg Magnificent Seven -3,5%. Nvidia -6,6%, at one-month lows.
In the last five sessions, the center of gravity of the stock market has therefore shifted, from large to small, from the most advanced technology to activities with a lower technical-scientific content, those relevant in the Dow Jones, which should benefit more from the drop in rates.
Stock market July 19: China struggling with debt containment
It closed yesterday at Beijing the plenary meeting of Central Committee of the Communist Party, which is held twice every ten years (SCMP). The participants reiterated their intention to focus on the modernization of the industry, on the growth of internal demand and on debt containment, but no other details were provided. The plenum took place while the Chinese economy is in serious difficulty and must face the collapse of the real estate sector, but also the barriers on imports posed by the USA and Europe. However, the government does not seem willing to initiate major reforms and has not specified the implementation phases of the proposals (Reuters).
Stock market July 19th, European markets weak
European markets are weak. Yesterday Index Stoxx Tech -4,5%, at one-month lows. In profit utilities, banks, energy. Plate the luxury, dopo two sharp declines. From a graphic point of view: banks confirm the solid bullish trend, while luxury must react quickly from the discriminating thresholds just reached to avoid other dangerous slips. Nothing new from the ECB meeting. Not surprisingly, the European Central Bank kept interest rates unchanged. According to the president of the ECB, Christine Lagarde, risks to the growth outlook are now tilted to the downside.
The September meeting will be crucial, with the release of new ECB projections. As already happened in June, if CPI 2026 forecasts will be in line with the 2% target, a potential rate cut of 0,25% is expected, as suggested by market prices.
Still to be reported: weak the car market also in June, with 1.310.989 cars registered in the area (EU, EFTA and UK) and volumes still far from those recorded before Covid. The recovery last month was 3,6% on the same month of 2023, a result that contributes to the performance of the first half of the year, up by 4,4% on the same period of 2023, 18,4% less than to 2019.
ll number of subscribers di Netflix reached 277 million in the second quarter of 2024, up 16,5% compared to 2023. The figure exceeded market expectations.
Compared to the same period a year ago, second quarter revenues di Tsmc, the world's largest semiconductor maker, rose 40,1%. Net profit increased.
