The European stock market indices indicate a slightly rising opening, however in a climate of uncertainty awaiting the first round of elections in France this weekend. The trend of spreads on the bond market is under scrutiny. Above all, the wait for US inflation data today dominates to have an indication of the Fed's next moves.
Wall Street awaits inflation data today
Wall Street closed slightly higher. Some profit-taking was seen in tech, while Treasury yields fell following weak macroeconomic data. The key data on inflation is expected today to get ideas on the Fed's next moves.
It was held last night the highly anticipated TV duel between the two candidates for presidenza of the United States. The media agree that the Democrat Joe Biden things went badly: weak and hoarse voice (due to a cold, he explained), uncertain sentences, sometimes a lost look. Panic has grown among Democrats over his performance which risks sinking him in the polls. Someone would have raised the possibility that Biden will step aside, the report said CNN. Donald Trump, by comparison, appeared full of energy.
S&P500 index yesterday at +0,1%. Nasdaq Composite +0,3%. Dow Jones +0,1%. Yesterday's data was lower than expected, showing a weaker economy, which could push the Federal Reserve to cut rates of interest to September. But the market is waiting for better indications on the monetary front key data on US inflation today: the PCE price index, the Federal Reserve's preferred inflation indicator, is estimated to slow to +2,6% from +2,7%. Yesterday, first quarter GDP q/q recorded an increase of +1,40%, in line with consensus, but above the +1,30% of the previous reading. Personal consumption in the first quarter rose by +1,5%, less than the +2% of the previous period, below the consensus of +2%. New unemployment claims totaled 233.000, up from 239.000 previously, below consensus estimates of 235.000. They return bond purchases American governments, following the slowdown in consumption. The yield on the ten-year Treasury Note is trading at 4,29%, -4 basis points.
Amazon.com rose 1% after hitting $2 trillion in market value for the first time on Wednesday. AeroVironment -7% The missile and drone maker reported a 57% drop in fourth-quarter earnings. Levi Strauss -16% The jeans maker reported a decline in second-quarter revenue, hit by sluggish demand for its Docker's brand.
Tech companies are under the spotlight with some doubts emerging among investors regarding the growth potential of artificial intelligence in general, pushing them to collect some profit. Micron Tech -5% While 's quarterly earnings beat expectations, its revenue forecast for the current quarter fell short. Nvidia -1,3% following news that some of its executives sold more than $53 million in company stock. Rivian -2%. Two days after news of Volkswagen's $5 billion investment, shareholders are now demanding details on the company's upcoming models and cost-cutting progress at an Investor Day event yesterday.
Among the major stocks worth mentioning is the heavy decline suffered by Walgreen boots alliance, fall of 22,16%. The latest quarterly data below market expectations and the second downward revision of estimates for the current financial year weigh on the stock. The group then announced the closure of a significant number of its 8.600 stores.
Asian stock markets positive. Mumbai marks the fourth historical record in a row
Most of the stock markets in Asia-Pacific moved higher in the last session of a positive first half of the year. The Nikkei 225 index of Tokyo rose 0,4% after mixed consumer price data from Tokyo. Although the overall consumer price index increased, underlying inflation remained weak. Instead, production in Japanese factories increased more than expected in May. The Hang Seng of Hong Kong earns 0,6%. The Chinese indices CSI 300 and Shanghai Composite rise 0,7%. South Korea's Kospi +0,4%. Taiwan Taiex +0,7%. Sensex by Mumbai +0,3%, on a new historical record, the fourth in a row. The yen slipped to 161,155 per dollar, a new 38-year low after Japan appointed a new top foreign exchange diplomat, raising expectations of imminent market intervention by Tokyo to support the currency.
Stock markets today 28 June: what to follow in view of the elections in France
Caution dominates on the stock markets with the first round of political elections in sight in France over the weekend. Futures, however, signal an opening up 0,2%. Yesterday the European stock markets weakened with the EuroStoxx50 index at -0,3% and the Milan FtseMib at -1%. In Paris, the CAC 40 fell 1%. According to the latest findings, the far-right RN party will reach 36% of the votes, while President Macron's Centrist Bloc is seen at 21%.
The yield of the German Bund is at 2,45% and that of the BTP has exceeded the 4% threshold at 4,02%. The Italy-Germany spread increased to 157 basis points. The French 3,26-year OAT yields 82%, the highest since November and the Bund/OAT spread is at 1,069 basis points. The euro-dollar exchange rate at 2, at a 0,5-month low. Brent oil and WTI +XNUMX%. Gold almost unchanged.
state Railways. The shareholders' meeting has appointed the new Board of Directors with Tommaso Tanzilli as president and indicated the former CEO of Terna and Acea Stefano Donnarumma for the position of CEO. The new Board of Directors, which will be in office for the three-year period 2024-26, also includes Caterina Belletti, Franco Fenoglio, Loredana Ricciotti, Tiziana De Luca and Pietro Bracco, says a note. The assembly also approved the 2023 budget which closed with a profit of 201 million euros which it decided to carry forward.
SG Company, one of the main players in Italy in the Entertainment & Communication sector, has purchased 51% of KleinRusso. The price, equal to 918.000 euros, is based on the average normalized EBITDA value of the last three years (2021-2023). An Earn-Out clause is envisaged based on the average EBITDA results for the three-year period 2024, 2025 and 2026, so the initial value may be re-evaluated. After the closing, scheduled for July 18, the KleinRusso Board of Directors will see the entry of Francesco Merone, CFO of SG Company, as a director with delegated powers.
Generali Real Estate sgr. Carlo Trabattoni has been appointed president of the insurance company dedicated to the management of real estate funds, and of Generali Investment Luxembourg, which manufactures products of Generali Investments Holding. Conversely, abio Cerchiai resigned from the position of vice-president of UnipolSai following his appointment as president of Bper Banca.
Saras. Consob has temporarily suspended the examination of the prospectus for the mandatory takeover bid of Varas, Vitol's special purpose vehicle, in order to acquire additional information.
Campari remains in the spotlight after yesterday closing down 3,5% on the news of the tax investigation against the Lagfin holding company, the group's main shareholder.
Prysmian It will aim for acquisitions of around 500 million euros and will refrain from large M&A operations over the next two and a half years to focus on reducing its 5 billion euro debt. CEO Massimo Battaini said this while speaking to journalists during an event on sustainability.
Fincantieri. the capital increase campaign continues and will end on 11 July. Rights negotiable until July 5th. Fincantieri and Crystal have signed a memorandum of understanding for the construction of two high-end, latest-generation cruise ships, with an option for a third unit. The note limits itself to defining the "relevant" value: in the case of Fincantieri it could correspond to a value between 1 and 2 billion euros. Delivery of the first ship is scheduled for spring 2028.
sapphire. The company has abandoned negotiations for the acquisition of Marcolin, as reported by Milano Finanza.
Salvatore Ferragamo yesterday it collapsed by -7%, sliding to the lowest levels of the last thirteen years, close to the historic low which dates back to October 2011 (8,10 euros). The loss from the beginning of 2024 widens to -30%, a figure that compares with the +11% achieved by the FTSEMIB. The Bloomberg consensus reads 0 Buy, 7 Hold, 10 Sell. Average target price 9,73 euros. The company will report its second quarter results on August 1st.
