Ed Yardeni, old sage of the markets, preaches prudence. “I see the same euphoria as the first season of the Internet” and speaks of a new “irrational exuberance”. But the race of markets he continues, regardless of the inevitable stumbles. TO Wall Street, S&P500 +0,1%, reaches the new all-time high. Dow Jones -0,3%. Nasdaq +0,4%. Netflix runs, closing up 10,7%.
Tesla -5% an increase in 2024, Microsoft above 3 trillion
The rally resists despite the disappointing accounts of Tesla -5% after the stock market. Ballasted by lower-than-expected results and the forecast of a "significantly lower" sales growth in 2024, as the structure is busy preparing for the launch of the new models. On the contrary, the accounts of other tech giants are booming, you see IBM, which are recording a rapidly increasing cash flow. Microsoft has exceeded 3 trillion dollars in capitalisation, a milestone achieved only by its rival Apple Lossless Audio CODEC (ALAC),, capable of exceeding the fateful threshold as early as January 2022.
New stimuli for China
The determination of the company is no less impressive China to interrupt the long negative streak. The People's Bank of China said yesterday that will cut the banks' compulsory reserve ratio and launched measures support al real estate sector.
The stimulus measures announced yesterday by the Beijing authorities give further impetus to the rebound in China's stock markets. At the end of the session, the Hang Seng in Hong Kong gained 1,8%. CSI300 of the Shanghai and Shenzen price lists 1,8%. Taiex of Taipei +0,7%.
The People's Bank of China said yesterday it would cut banks' reserve requirement ratios and hinted at further measures. The Reserve Ratio Requirement rate – on the basis of which the amount of cash that banks must keep in liquidity is determined – will be lowered by 0,5 percentage points on 5 February. The move will provide 1.000 trillion yuan ($139 billion) of long-term liquidity to the market. Overnight, more measures arrived, this time affecting the real estate market: the central bank will allow bank loans pledged on developers' commercial properties to be used to repay other loans and bonds. In the rest of Asia Pacific, the Japan stock exchanges and South Korea are little moves. The index BSE sensex of Mumbai loses 0,7%.
Europe starts in red: the Techs run
The European markets are less euphoric as they await the ECB meeting: the main European stock markets open slightly lower. But thanks to push of the tech component, yesterday the European blue chip index closed up by 2,2%, the highest since 2001 thanks to the push of Asml +9,7% and Temple Size +7,7%. The index fell within one point of the record of the last 23 years. The Stoxx Tech index closed up +5%, at its highest level in two years, with a nice boost that projects short-term targets of around 8% above.
Worth noting is the new lengthening of the banks. The FTSE Italian Banks index, which groups together the securities of Italian banks, rose by +2%, reaching its highest level in eight years, with Mps was a big protagonist yesterday (+ 5%), Unicredit (+1,9%) at eight-year highs and Pop. Sondrio (+1%) at 15-year highs. Milan's Ftse Mib rose by 0,8%.
- PMI indices showed a slight recovery in business activity in the eurozone. Other indications are expected today from the confidence indices of France and Germany for January. Expectations are for a stable reading at 100 for France and for a marginal improvement to 86,7 from 86,4 for the Ifo index which summarizes the morale of German companies.
In Frankfurt rates unchanged
The ECB meeting. Frankfurt should leave i unchanged rates al 4%.
The wait-and-see attitude is more than justified bond market, after having digested the record rise in the last quarter of 2023. Ten-year Treasury Note at 4,15%; Ten-year Bund at 2,34%; Ten-year BTP at 3,89%, while the spread it remains at 155 basis points, the lowest since April 2022.
The numbers are no less awaited US GDP in the 4th quarter. A slowdown is expected, to +2,0% from +4,90% in the third. Data that comes a few days before the Fed meeting in which the central bank is expected to keep rates unchanged.
JP Morgan cuts forecasts
jp morgan he adjusted his perspectives for the oil market, predicting that i oil prices will average $83 per barrel in 2024. This forecast comes against a backdrop of expectations of a change in oil market dynamics, with an expected decline to $75 per barrel in 2025. The bank also revised its growth projections in oil demand, indicating a significant slowdown. From an increase of 1,9 million barrels per day in 2024, JP Morgan now estimates an increase of only 1 million barrels per day in 2025.
STM, accounts down. Snam, coupon rises
Put on your helmet, dear shareholders of stm. The company expects first-quarter revenues to be around $3,6 billion, compared to consensus expectations of $4,08. “Revenues for the full year 2023 increased 7,2% to $17,29 billion.” Operating margin “was 26,7% compared to 27,5% in 2022 and net profit advanced 6,3% to $4,21 billion. We have invested 4,11 billion dollars in net capital expenditure with a free cash flow of 1,77 billion dollars", says the president and CEO of the group in a note, Jean-Marc Chery.
Better Brembo: Berenberg initiates coverage with a Buy rating. Target price at 14 euros.
Buzzi: Unicem Berenberg raises rating to Buy.
Unicredit. Deutsche Bank cuts to Hold.
Tod’s closed 2023 with a turnover growing by 11,9% to 1,13 billion euros, slightly exceeding analysts' expectations of 1,12 billion, according to the consensus provided by the company.
Snam sees total investments by 2027 at 11,5 billion euros. The dividend policy provides for a minimum annual growth of 3% to 2027, starting from the 2024 dividend, an increase compared to the previous policy which provided for a minimum of 2,5%. The coupon was "increased on the basis of a growth in adjusted net profit of 4%", we read in the Industrial Plan.
