Nvidia did not disappoint expectations. On the contrary. There quarterly presents exceptional numbers: revenues equal to 13,51 billion dollars, up 101% compared to a year ago and 88% compared to the previous quarter but with forecasts to rise to 16 billion at the end of September; earnings soared to $6,19 billion from $656 million last year. Based on these numbers, the CEO Jensen Huang has launched a buyback on shares (tripling in value since February) for 25 billion dollars, favoring the new leap forward in prices +8% after the stock market. Beyond the numbers, it is the confirmation that the US digital economy is rapidly converting toArtificial intelligence, mobilizing gigantic capital. “We're wondering – strategist Quincy Crosby tells Bloomberg – whether these accounts are not more important for the market than the comments that Jerome Powell will make in Jackson Hole on Friday”.
The crisis in German manufacturing gives the bull a hand
◦ The euphoria coming from the Nasdaq also infects the European lists even if, paradoxically, to justify a positive start of the Eurostoxx (future +0,5%) are above all the bad PMI data released yesterday: Madame Lagarde, it is thought, will have to moderate her tone to take into account the crisis, especially the German one.
◦ The Eurozone PMI index derived from purchasing managers' choices decreased to 47,0 points, the lowest value since November 2020. In particular, German business activity contracted at the fastest pace since August over three years.
◦A Milan the index rose by 0,2% to 28.233 points, consolidating the stability of the psychological threshold of 28 points. This time it was the titles of the Utility sector that pushed, rewarded by the drop in yields and above all by the government's promise not to tax any extra profits as happened for the banks.
Boom session for fixed income. The BTP gains 1,15%
◦ Bond market in great dust yesterday and in robustness recovery from lows multi-year, thanks to the cooling of the economy American and European reported in August. The worsening of business activity in the Eurozone, particularly in Germany has fostered a robust Bond rebound. Hence the best session in a month at this part. The price of ten-year BTPs appreciated by +1,15%, yielding 4,16% from 4,39%. German Bund +1,23%, with the yield at 2,53% from 2,70%.
◦ The Nvidia effect is felt above all in the USA. Wall Street futures report the Nasdaq up +1,2% and the S&P500 up +0,70%.
◦ Data showed that US economic activity approached stagnation in August, with the weakest growth since February due to contracting demand for new business in the services sector.
Powell will choose the "higher for longer" line
◦ In light of the data, Powell tomorrow could confirm the hypothesis of one pause in the ups of rates at the September meeting. The majority of operators are convinced that the Fed president will preach the need for a higher for longer approach, i.e. rates at current levels for at least half of 2024 to make soft landing possible.
The price of Treasury Notes ten-year bond rose by 0,77%, the best session for three weeks, and the yield stood at 4,20% from 4,35% at the beginning of the week.
Consumption under braking, Foot Locker collapses -30%
◦ The Peloton plunge -27% on Wall Street yesterday. The sports equipment company released far below expectations. The data weighs -2,5% on Technogym in Piazza Affari.
◦ It gets even worse for Foot Locker -30%. The company further lowered its guidance, due to weakening consumption.
Tech is also flying in Asia. hynix +5%
The push coming from Nvidia is also felt on the Asian price lists, pushing the technological upwards.
Japanese chip-testing equipment maker Advantest jumps more than 2%, the best stock on the Nikkei 225. Chip-making giant TSMC is also up more than 2%. South Korean company SK Hynix Inc, which supplies memory chips to Nvidia, rallied more than +5%. Samsung Electronics +2,1%.
With interest rates in Korea, China is not moving
The Nikkei 225 +0,6% and South Korea's Kospi +0,7%, the central bank kept interest rates stable for the fourth consecutive month. Sensex of Mumbai +0,6% soberly celebrates the success of the Indian space mission.
The Nvidia effect is also being felt in China. Tech giants Baidu Alibaba Group and Tencent Holdings, all three with some exposure to artificial intelligence, help Hong Kong's Hang Seng index gain nearly 2%.
According to rumors, Huawei is developing a network of chip manufacturers with the aim of circumventing the US embargo.
Shanghai-Shenzhen CSI 300 Index +1%. The market is disappointed by the lack of government measures to stimulate growth. There is talk of it, but at the moment there is nothing concrete.
Oil slows down, evidence of US/Venezuela agreement
Il brent it slips to 83 dollars, fourth consecutive decline for oil. Naturally, yesterday's signs of a slowdown in global growth could not help but have negative reverberations on the main commodity. On the supply side, Iranian crude oil production will reach 3,4 million barrels a day by the end of September, the oil minister said quoted by state media, even as US sanctions remain in place. US officials meanwhile are preparing a proposal that would ease sanctions on Venezuela's oil sector, allowing more companies and countries to import its crude oil, if the South American nation moves towards free and fair presidential elections.
Hot chips in Milan, Delfin's conditions for Mediobanca
The Nvidia effect is also expected in Piazza Affari. In the spotlight stm, but other titles of the small patrol of made in Italy chips from Eles to Osai deserve attention.
Enel. The subsidiary Enel Green Power has proposed to the local communities of Tuscany and to the trade unions investments of three billion euros against a 15-year extension of the concessions for thermoelectric energy.
Mediobanca. Delfin has asked for five directors on the board, a shared president and a commitment to review the bank's governance as a condition for arriving at the meeting for the renewal of the board in October with a shared list, writes Il Sole.
