Minus 1. Only one day left until the start of the easing cycle. Federal Reserve, which could see policymakers cut rates by 50 basis points, a part of the market considers disproportionate. The FMC Fed meeting starts today but the response will be communicated tomorrow. Also the Bank of England (BoE) and the Bank of Japan (BOJ) will meet this week to discuss monetary policy: both central banks are expected to keep rates unchanged. In Asia, the Tokyo stock exchange upon returning from vacation, it finds itself in decline, weighed down by export companies weighed down by the ballast of a Yen still very strong.
Wall Street is out of tune as it awaits the Fed. Microsoft announces a mega dividend
Wall Street closed the day yesterday in a mixed way: the Dow Jones gained 0,55%, continuing the positive streak that began last Wednesday, while, on the contrary, the S&P-500 (New York) remains at the starting line, stopping at 5.633 points, close to previous levels. Below par is the Nasdaq 100, which shows a drop of 0,47%; without direction the S&P 100 (-0,07%). The financial (+500%), energy (+1,22%) and materials (+1,20%) sectors stood out in the S&P 0,90 basket. The IT sector, with its -0,95%, is the worst of the market. Among the worst performances to be noted Apple , which closed at -2,79%. Microsoft announced yesterday that its board of directors has approved a new buyback program of its own shares for a maximum amount of 60 billion dollars. In addition, the technology giant has declared a dividend quarterly earnings of $0,83 per share, up 8 cents, or a del% increase 10, compared to the previous quarter. Microsoft said it will hold its annual shareholder meeting on December 10.
Il dollar and US Treasury yields came under pressure: The yield on the two-year U.S. Treasury note, which typically reflects expectations for short-term rates, settled at 3,5547%, after falling to a two-year low of 3,5280% in the previous session. The benchmark 10-year yield was virtually unchanged at 3,6232%.
While waiting for the Fed, we look at the US data today: at 14:30 PM Retail Sales, monthly (expected -0,2%; previous 1%) and annual (previous 2,7%). At 15:15 PM Industrial Production, monthly (expected 0,1%; previous -0,6%) and annual (previous -0,2%). At 16:00 PM NAHB Index (expected 41 points; previous 39 points), Industrial Sales, monthly (previous -0,1%) and Industrial Inventories, monthly (expected 0,4%; previous 0,3%).
Asia: Tokyo returns from holidays and finds itself in decline
The long ones Holidays in China and South Korea have created unfavorable trading conditions in anticipation, again, of an overly aggressive cut by the Fed. This has meant that the dollar remained close to the level lower in over a year against the yen, at 140,64, after falling below the 140 yen level in the previous session. It stronger yen has fueled concerns about earnings Japanese exporters and dragged down the Tokyo Nikkei of 1,50% upon the market's return from a national holiday yesterday.
Outside Japan, MSCI's broadest index of Asia-Pacific shares is up 0,02%. The Hang Seng Index Hong Kong rises by 1,60%. The title of the Chinese household appliances manufacturer Midea Group grew to 9,5% at its Hong Kong stock market debut today, after having collected almost 4 billion dollars in the city's biggest stock offering in nearly four years, boosting hopes of a revival in China's big issues. Midea, also listed in Shenzhen, priced its shares at HK$54,80 in its listing on the Hong Kong stock exchange.
Oil prices hit by Hurricane Francine
Oil prices rise as concerns over weak Chinese demand Petroleum were overshadowed by the ongoing impact of Hurricane Francine on production in the U.S. Gulf of Mexico, which sent oil prices higher on Tuesday. Brent crude futures rose 0,44% to $73,07 a barrel, while U.S. crude futures rose 0,67% to $70,56 a barrel. The price Of their spot fell 0,22% to $2.576,84 an ounce.
European stocks seen positively. Spotlight on banks
European stock markets expected to be positive at the start of the session based on indications from the Eurostoxx50 futures which rose by 0,46%.
Between twists and turns and failures, the new European Commission branded Ursula Bis could see the light today, with the presentation of the final list of names of the team. According to European sources, the green light from the majority groups of the Eurochamber arrived yesterday evening and, this morning, President von der Leyen is ready to present her formal list to the Conference of Presidents of the groups. According to the Financial Times, the EU plans to raise up to €40 billion in loans for Ukraine without the US, and Brussels is working on an alternative financing solution to circumvent Hungary's veto on extending the freeze on Russian assets.
Be careful still with the European bank stocks, all concentrated in a fierce game of risk. Starting from Unicredit who has announced his interest in the German Commerzbank but which could find competition from the Teutonic on its path Deutsche Bank. The Berlin government, which still holds a 12% stake in Commerzbank, is evaluating what to do. The French BNP Paribas are also said to be watching. Yesterday Unipol, indicated as the closest to MPS, was the best stock on the main list, rising by more than 6% and exceeding the 10 euro threshold: since the beginning of the year, the shares have boasted a rise of 95,9%. General Bank. Following the launch of the takeover bid on Intermonte, a few more months will be taken to develop the industrial plan, which "will probably be presented to the financial community next spring", as the CEO, Gian Maria Mossa, said in an interview with Il Sole 24-Ore.
Team. Davide Leone and Partners, an investment firm based in London, holds 10% of the savings shares of the telecom giant. Leone told La Repubblica that "as years ago for the banking sector, which led us to invest in Banco Bpm, today the telecommunications sector in Europe is undervalued" adding that the rates that are starting to fall and a change in EU rules could favor investments in digitalization. "We believe that Tim savings shares are undervalued especially if the collections expected by management will occur", such as the sale of Sparkle and the earn out for the merger with Open Fiber.
Iren has completed the issuance of a 500 million Bond with a duration of 9 years, the sixth in Green Use of Proceeds format, which allows to further strengthen the Group's financial structure, improving liquidity ratios. The bonds, which have a minimum unit denomination of 100.000 euros and mature on 23 September 2033, pay a gross annual coupon equal to 3,625% and were placed at an issue price of 99,300%. The effective gross yield at maturity is equal to 3,718% corresponding to a yield of 137 basis points above the midswap rate. The settlement date has been set for 23 September 2024.
