Stock markets like bad news. Also in Asia. the rule applies: the China, once the momentum of the post-Covid recovery has been lost, he now travels in the deflation tunnel. In June, consumer prices recorded zero growth compared to a year earlier, this is the lowest change since February 2021, while producer prices plummet, -5,4%, the sharpest drop in the last eight years. There market response is upwards: the Csi 300 rises by half a point, Hong Kong, the most technological list scores + 0,7%. Markets are betting on a new stimulus package from the central bank.
The yen rises, the Tokyo stock exchange falls
Script opposite for Japan. The balance of payments marks a triple-digit improvement as well as dividends arriving from abroad. The stock market reacts in the red: -0,7%, down for the fifth consecutive session. The feeling that it takes shape yen is set to rise in the wake of pressure on the Bank of Japan to ease its zero rate policy. A move feared by international speculators who borrow in the Tokyo currency to buy currencies supported by high rates: the Mexican peso is paying the price this morning.
Il Kospi of Seoul is around parity, as well as the Taiex of Taipei. The stock markets of India and Australia rose slightly.
On Wall Street the quarterly of the banks is staged
The common thread between price lists, exchange rates and interest rates is destined to dominate the financial scene even on the most important markets. I am Wall Street futures are down slightly. The Nasdaq finished the week down 1% on Friday on par.
Il Treasury Notes at ten years it starts again from 4,08%, with little movement. The relative weakening of the labor market documented by data released on Friday afternoon pushed the two-year yield down to 3,94%. The spread between ten years and two years it fell to -86 basis points.
It will start next Friday quarterly campaign. As usual, the parade will begin with the accounts of big banks, starting with JP Morgan and Citigroup. The accounts of Delta Airlines e PepsiCo. According to Goldman Sachs, quarterly earnings will record a average drop of 9%, confirming the economic slowdown.
Towards an increase in US interest rates. Biden at the NATO summit
However, the operators give for almost discounted the quarter point increase in rates at the meeting of 26 July. Some speeches are on the agenda today that could better clarify the Fed's position. Online speech by the Fed chairman by Cleveland Master. San Francisco Fed Chair Daly and Atlanta Fed Chair Bostic also speak.
Geopolitical movements are relevant. Archived with apparent success visit of Secretary of State Janet Yellen to Beijing, the spotlight shifts to Vilnius, home from tomorrow of NATO summit in the presence of Joe Biden.
Week in red for the main world stock exchanges, intimidated by the hypothesis of other increases in the cost of money. L'MSCI World index lost overall by 1,4%,
Futures in parity. The spread holds
Le stock exchanges of Europe should open a week full of data around parity.
I Euro Stoxx futures50 -0,1%. The Ftse Eb of Milan closed the weekly balance on Friday with an increase of 1%, -1,6%.
The bonds are back from a hot week. The German bund restarts from 2,64%, the highest since March, construction sector at 4,34%, the highest since May. The spread instead it remained at low levels, 170 basis points, a sign of the recovery of credibility of the Italian system.
Data on the macro front will arrive this week industrial production, the Zew index in Germany, industrial production in Great Britain.
Also on the calendar is an awaited event Ecofin summit to be held on Friday in Brussels and the day before a meeting of the Eurogroup which will discuss the economic and budgetary situation in the euro area and the budgetary policy guidelines for 2024. But there will also be talks about the international role of the euro, the future of European financial and capital markets and the digital euro.
Gas, the Piombino plant starts operating
Brent ($78,0), wtf (73,30). The Petroleum started the session slightly lower after crude oil jumped 2,55% on Friday to a month-long high as OPEC+ announced plans to further reduce supplies. Saudi Arabia will extend its production cut by 1 million barrels a day through August and Russia will cut its crude oil exports by 500.000 barrels.
Il EU gas (Amsterdam) closed at 33,50 euro/mWh. Its price is still more than halved compared to the beginning of the year. Meanwhile, the disputed Piombino regasification plant began distributing gas in the Italian network, once it received the first commercial load of 90 million cubic meters of liquefied natural gas (acronym LNG or LNG) to be introduced into the Snam network.
Bnp raises the targets of the banks, a Czech tycoon in Ferretti
Enel, A2A, Iren, Eni: Energy Minister Gilberto Pichetto Fratin said on Friday that the extraordinary tax on extra profits passed last year might not be renewed this year. "It is clear that, with a view to normalization, we all hope that there will be no tax (on 2023 profits)," he said on the sidelines of a Confindustria Energia conference.
nexi: the Monday supplement of the Republic writes that the company intends to sell some non-strategic assets. Overall, the areas that could leave the perimeter are worth around 800-900 million euros. The possible acquisition of the digital payment assets put up for sale by Banco BPM could be in the order of six hundred million euros.
Fincantieri: the delivery of a cruise ship commissioned from Fincantieri by MSC has been postponed after some fireproof panels supplied to the Italian shipbuilding group began to be withdrawn from the market due to defects. The Financial Times writes it quoting people informed about the facts.
Unicredit, TheSanpaolo agreement: BNP Paribas raises the target price of the main listed Italian banks.
UnipolSai: the bank closed a series of agreements aimed at simplifying the structure of its bancassurance partnerships. UnipolSai exits the Incontra jv.
Ferretti Valea Foundation, headed by the Czech billionaire Karel Komarek, has entered the capital of the Italian yacht manufacturer Ferretti with a 10,007% share.
