Rate hikes send profits of big US banks soaring and buoying mood Wall Street, but they are not enough today a Business Square, dominated by profit taking after the recent run.
Il Ftse Eb it closed with a loss of 0,39%, remaining in any case at a 15-year high at 28.663 basis points. The decline of some energy heavyweights such as Eni -1,42% Enel -1,45% Saipem -1,71%, while banks progressively lost ground during the session, finally splitting between the gains of Ps +1,72% and losses of Bpm bank -2,155. Weak the big ones, Understanding -0,55% and Unicredit -0,73%.
Positive Wall Street and confident consumers
Today's session closes a brilliant week for the financial markets, thanks to the convinced slowdown ofinflation US, which fueled the bets on the end of the rate hikes by the Fed, after the increase in July, which appears to be discounted.
Wall Street, sung at the start, is now moving cautiously up and could bring home the fifth consecutive session in progress. The optimism is fueled by US consumer confidence which, in July, reached its highest level in almost two years, thanks to the slowdown in inflation and the solidity of the labor market.
On this Friday, however, the focus is above all on the quarterly reports of the big stars and stripes banks, which positively surprised analysts. The rate hike fueled the gains of banking giants such as JP Morgan (+1,9%), which saw a 67% increase in profit. Instead, they are losing ground Citigroup (-2,16%) And BlackRock (-2%), while it is on the rise Wells Fargo (+ 0,1%).
Leading the earnings of Dow Jones (+0,38%), there is UnitedHealth Group (+7,1%), a health insurance company that announced higher-than-expected quarterly profit thanks to expenses that were lower than feared.
Contrasted Europe
In Europe the closure is mixed: in addition to Milan, they are at a loss Madrid -0,44% and Frankfurt -0,21%. They are a little less or a little more than flat London -0,07% and Paris +0,06%, while confirmed progress Amsterdam + 0,53%.
Of the various stocks, the loudest thuds are in telecommunications: Nokia (-9%) lowered its full-year forecast; Ericsson (-10,6%) plunged 62% in second quarter adjusted operating profit.
THEeuro it also appears in tune against the dollar today and trades near 1,124, even as the greenback index halts the recent bleeding on expectations of a more dovish central bank.
Among the raw materials, the Petroleum, the September 2023 Brent contract loses 1,61% and moves on the edge of 80 dollars a barrel.
falls the gas, which pits the 26 euro downwards (25,68, -3,48%).
Bank of Italy: zero growth in the second quarter
The Economic Bulletin of Bank of Italy has contributed to extinguishing some enthusiasm on the Milanese price list, which observes how the country's growth has discontinued in the second quarter, while the overall picture remains highly uncertain. The slowdown in the second quarter was caused by the contraction in manufacturing and the slower pace of consumption. In the update of the forecasts for the entire year, it is still estimated that the GDP will rise by 1,3%, while the forecasts for 2024 and 2025 have been reduced to +0,9% and +1% respectively. To offset this cyclical cooling effect, the reduction of inflationary pressures and the greater public investments planned in the Pnrr would contribute in part, says Bank of Italy. Inflation is expected to drop in the next two years: +2,3% in 2024 and +2% in 2025.
Healthcare is doing well in Milan, Cucinelli is losing share
Among the major increases of the day of the Ftse Mib is Finecobank + 1,49%.
They are in line with the positive European health sector Amplifon +0,07% and Recordati +0,44%. It bounces Ferrari +1,42%, while Telecom, +0,54%, is not influenced by the bloodbath of the two telecommunications giants. The CEO Labriola, writes Radiocor, underlined that the NetCo dossier is proceeding according to schedule, with the aim of closing in advance of the final deadline of September 30, while he held back on the sale of a stake in Enterprise Co, given that it is the division with the best growth prospects. Well Campari + 0,62%.
Out of the main basket, returning from several rising sessions, it is losing altitude Brunello Cucinelli, -3,6%, after the six-monthly data in line with expectations and despite rising estimates for the entire year. According to Equita, the title "The title deals with already correct evaluations".
Stable spreads
The secondary archives a session with little movement, with the spread which rises slightly to 169 basis points (+0,67%) and stable returns. For the 10-year BTP +4,16%; for the 2,47-year Bund +XNUMX%.
