Markets were expected to be in an excellent mood after Meta's excellent quarterly report and the Fed's official opening to a rate cut in September. And instead the European stock exchanges proceed in sharp decline with Business Square which records one of the worst performances at a continental level, ballasted by the banks and Prysmian. At mid-day the red is 1,2% at 33.350 basis points. It also widens spread, which breaks through the psychological quota of 140 basis points, while the yield on the benchmark ten-year BTP is at 3,64% from 3,65% the day before.
Cars and banks weigh down European stock markets
The financial and automotive sectors are dragging European stock markets lower, overshadowing the indications provided by the Federal Reserve with President Jerome Powell confirming yesterday that "A reduction in the reference rate could be on the table as early as the next meeting in September". It has also arrived in Europe Bank of England which cut rates by 25 basis points to 5% after keeping them at 5,25% for a whole year, the highest level for 16 years.
On the macro front in June, according to Eurostat, the seasonally adjusted unemployment rate in the Euro Area was 6,5%, up compared to 6,4% in May and stable compared to June 2023. The unemployment rate in In the EU, however, it stood at 6%, stable compared to May 2024 and June 2023. In Italy, in the same month, both the employed and the unemployed increased and the inactive decreased. In fact, Istat announced that in June the number of employed people exceeded that of June 2023 by 1,4% (+337 thousand units), while the employment rate in one year rose by 0,7 percentage points. Compared to June 2023, the number of people looking for work fell (-6,4%, equal to -122 thousand units) and that of inactive people between 15 and 64 years old (-0,8%, equal to -103 thousand) . The unemployment rate instead stood at 7% (+0,1 points), the youth rate at 20,5% (+0,1 points).
In this context, it Stoxx 600 it lost 0,5% after hitting a two-week high in the previous session. The banking sector is the one with the greatest decline, with a decline of 2,44%, with Societe Generale which drops by 7,3% after communicating the second quarter results. The auto sector is also down (-1,5%), with Volkswagen (-1,7%), bmw (-3,1%) And Daimler Trucks (-2,4%) in the red after the accounts. However, the leap of Rolls Royce (+10,9%) which raised its earnings guidance and resumed paying dividends.
Moving on to the price lists, Paris lose 1,3%, Frankfurt 1,2%, Madrid 1,16%. Limits damage (-0,2%) Amsterdam, while outside the EU London marks -0,5% after the Bank of England's decision.
In the meantime, the futures are slightly rising US stock exchanges, dragged once again by tech stocks. In the pre-market Meta rises by more than 7% after the quarterly, while Nvidia (+12,8% yesterday), nibbles at a further +1%. Tonight it will be Apple and Amazon's turn to publish their quarterly results.
In Piazza Affari the banks collapse, Tim and Leonardo do well
There are only three stocks rising on a dark day for Piazza Affari. At the top of the Ftse Mib there is Tim which, after some initial shocks, gained 2,5%. They are driving the title the accounts published yesterday with the markets closed and highly appreciated by analysts. Intermonte defines the second quarter numbers as "better than expected", with debt in line and confirmation of targets, even if "on the old perimeter, domestic profitability was lower than consensus, but absolutely in line with our estimates" . Summing up, "while we do not expect significant improvements in the consensus estimates for FY24-26 - writes the broker - we appreciate the quality of the results and the visibility offered on the achievability of the guidance for the year, in particular that relating to the debt".
On the shields too Leonardo (+1.%), while nexi rises by 0,7% after the accounts and Diasorin e Saipem they earn 0,2% and 0,18% respectively.
The list of discounts is long and well-stocked. Prysmian recorded the worst performance on the list (-4,3%) after the half-yearly report. The accounts are also ballast Tenaris (-3,2%), but it is above all the banks that are dragging the Ftse Mib down, with the sector index down by more than two and a half percentage points.
Mps, Banco Bpm, Unicredit and Bper they give up 3 percent and Understanding which loses 2%. Bad too Mediobanca (-2,23%) despite record revenues and profits registered in the financial year ended 30 June.
They also lose 2,5%. Terna e Unipol.
Oil prices continue to rise
Oil's rally continues as tensions rise in the Middle East. The Brent, October contract, is at 81,51 dollars a barrel (+0,8%), the wtf of the same maturity is 78,68 dollars (+1%). The price also rises natural gas, which in Amsterdam travels at 36,225 euros per megawatt hour (+1%). On the currency market, the euro is at 1,08 dollars, down from 1,0825 at Wednesday's close, while the pound hits four-year lows against the dollar after the BoE cut.
(Last update: 14.20am on 1 August).
