Stock market July 11th, there's no doubt about it: the new oil is the technological which fuel stock markets around the world and push them to new highs. Driven by the euphoria of Wall Street, which today awaits data on slowing inflation, and of the Asian markets, Tokyo in particular, the European stock exchanges they are expected open higher, as futures suggest, while the political stalemate in France it doesn't seem to interest the markets that much. Last night the French president Emmanuel Macron invited the parties who recognize themselves in the republican institutions to join forces to form a solid majority in the National Assembly. In an open letter to some regional newspapers, the now very unpopular Macron urged the parties to form a government coalition and said he hoped to choose a prime minister from this grouping. “We place our hope in the ability of our political leaders to demonstrate a sense of harmony and pacification in your interest and that of the country,” he wrote. “It is in light of these principles that I will decide on the appointment of the prime minister.” Macron did not explicitly call for the exclusion of the Rassemblement National and left-wing parties such as La France Insoumise from the coalition, but the mention of “republican values” is generally understood to mean the exclusion of far-left or far-right parties.
Wall Street at new highs awaiting inflation data. All the techs shine
Wall Street brought home substantial gains yesterday, with the Nasdaq and S&P 500 at record levels thanks to the US chip maker's gain Nvidia (+2,69% to $134,91) and other heavyweights ahead of inflation data and quarterly earnings reports. The Dow Jones achieved an increase of 1,09% to 39.721 points, while theS & P500 it gained 1,02% to 5.634 points, with a new all-time high of 5.635 points. Plus sign also for the Nasdaq (+1,18% to 18.647 points, just below the new historic high of 18.655 points). On the podium of Nasdaq stocks, Illumina (+ 6,08%), Walgreens Boots Alliance (+ 4,36%), ON Semiconductor (+ 4,23%) and micron Technology (+ 4,00%). Tesla gains 1,6% and is looking for the eleventh increase in a row, in the wake of the positive results on deliveries in the last quarter; this would be the longest winning streak since June 2023, during which it gained around 44%. Markets are awaiting data today on June inflation and the labor market.
Linflation in the USA it's going slowly turning off. Consumer prices excluding energy and food are expected to grow just 0,2% month-on-month in June. Bloomberg economist Scott Johnson points out in the text accompanying his estimate that the deceleration in increases in used cars and recreational activities is important. Compared to last year, general inflation is expected to be +3%, from +3,3% in May. Johnson estimates a further cooling of the Core PCE, the most closely watched inflation indicator. In his opinion, these two data will convince the hesitant Federal Reserve to proceed with the rate cut in September.
The president of the Federal Reserve, Jerome Powell, said he was “entirely focused on achieving a soft landing” for the US economy. The goal, therefore, is to lower inflation without damaging the US economy. “Trying to make decisions” in this direction “is what I think about in the wee hours,” Powell said, in his second congressional hearing on monetary policy.
To follow large US banks, overall weak on the stock market at the moment, after some sources said a Reuters that the Fed is considering modification of some coefficients linked to capital, which would effectively become a source of savings worth several billion.
Tokyo stock market at record over 42.000 driven by tech stocks
The Japanese Nikkei stock average has in fact reached another "peak" in the wake of the rally in US stocks and one wonders how Tokyo manages to be at the highest levels with rates at zero, the same as Wall Street, with rates at 5,5%. The Nikkei it closed up 1,21% well above 42.000 points (42.340,70) for the first time. The widest Topix rose 0,92% to 2.935 points. Stocks have been trading for two weeks grind historic highs, with analysts citing further depreciation of the yen and they expect that there may be a further momentum in conjunction with the publication of the company profits during the month. “Japanese corporate earnings are likely to be better than expected this earnings season due to the extent of the yen's depreciation,” said Kenji Abe, chief strategist at Daiwa Securities. “There may be further increases in stock prices following the release of good earnings reports by companies,” which could push the Nikkei up to 42.600 or 42.700 points.
Le Japanese semiconductor stocks rose alongside U.S. stocks, which received a boost from the contract manufacturer's strong quarterly results Taiwan Semiconductor Manufacturing Co.. Among the chip-related stocks, the chip manufacturing equipment giant Tokyo electron rose by 1,2% and Disco Corp it rose by around 3%. Socionext it jumped 4,7%, becoming one of the top performers in percentage terms, soon after Sumco, up 5,1%. sony-group came in third place, with the technology and entertainment conglomerate gaining 3,7%. Gains were widespread, with 178 of the Nikkei's 225 constituents advancing, including the index's heavyweights, the parent Uniqlo Fast Retailing, up 1,5%. Japanese core machinery orders unexpectedly fell for the second consecutive month on a monthly basis. However, on a year-on-year basis, they increased more than expected
The Hang Seng of Hong Kong gains 1,5% thanks to the tech push: Hang Seng Tech index +2,1%. CSI 300 of the price lists of Shanghai and Shenzhen +1%. There China has taken some of the most extreme measures to limit short selling and quantitative trading strategies. The regulator has approved an increase in margin requirements for short selling starting July 22, making trades more expensive for hedge funds and bear market specialists. Meanwhile, China Securities Finance Corp, the country's largest securities lending provider, will suspend its securities lending business to brokerage houses starting July 11. The measures, announced late on Wednesday evening after the CSI 300 reference index fell for the sixth time in seven sessions, send a clear signal to the market: Beijing's policy wants to stop the landslide that has erased it in every way approximately $1.000 trillion in onshore market value as of mid-May.
Elsewhere in Asia, Kospi Index of Alone +0,7%. TAIEX by Taipei +1,6%: TSMC, the chip manufacturing giant for third parties, gains almost 4% and hits another record after the presentation of the quarterly data. Bag of Mumbai on equality.
Stock market July 11th in Europe: what to follow today
European stock markets are seen opening higher as indicated by the Euro Stoxx 50 Sep 2024 Future at +0,3%. IERI (Yesterday) Milan was one of the best, with a +1,31% well above 34 thousand points. Paris +0,86%
Bond. The Treasury is today auctioning 3, 5, 7, 10 and 20 year BTp for a total amount of up to 8,5 billion
SS Lazio has announced that it has definitively purchased the right to the sporting performances of 3 players: Loum Tchouna from US Salernitana and Tijjani Noslin from Hellas Verona, to which is added the temporary purchase (with obligation to purchase) of Dele- Bashiru Oluwafisayo Faruq from the Hataysport Club Association.
Juventus FC has reached an agreement with the French club Nice for the definitive acquisition of the rights to the sporting performances of the footballer Khephren Thuram-Ulien for a consideration of 20 million euros, payable in three financial years, in addition to additional charges equal to 0,6 .XNUMX million euros.
Telecom Italy. After yesterday's +4,86%, driven by the promotion of S&P's, it is seen rising further. According to some analysts there is room to rise by another +40%
Brunello Cucinelli brings together the board of directors on preliminary results for the first half of 2024.
Saras. Consob has approved the offer document relating to the takeover bid promoted by Varas and concerning a maximum of 518.486.282 ordinary shares of the group, representing 54,520% of the share capital. The offer acceptance period will begin tomorrow 12 July and end on 9 August. On the fifth trading day following the closing date of the acceptance period, i.e. 19 August, the offeror will pay each shareholder who has subscribed a fee equal to 1,60 euros for each share tendered in the takeover bid, finalized to acquire the entire share capital of Saras and therefore to delist from Piazza Affari.
Mfe. JP Morgan raised its recommendation from neutral to overweight.
Fincantieri. The capital increase ends
Germany. Inflation confirmed to be slightly moderate in June 2024. This was reported by the data published by the federal statistics office Destatis, in line with the end-of-month data, which indicated an increase of 2,2% on an annual basis, after +2,4, XNUMX% of the previous month.
Britain. Real gross domestic product (GDP) grew 0,4% in May 2024, after showing no growth in April 2024, and compared to the +0,2% expected by analysts. This was communicated by the National Institute of Statistics of Great Britain (ONS). The figure on an annual basis marks +1,4%, compared to the expected +1,2% and +0,7% of the previous month. Industrial and manufacturing production in the United Kingdom was below expectations, although it improved compared to the previous survey.
