With the United States absent for the Independence Day holiday, trading could be more subdued. Futures, however, suggest a slight rise in European stock markets. Wall Street set new records yesterday with Tesla closing up 6,5%. But worries for the banks return after the collapse of First Foundation due to its high exposure to the real estate sector. The EU's approval on the matter is expected today duties for the Chinese cars, but there are others under consideration that would target Chinese retailers such as Temu, AliExpress and Shein
Wall Street closed today for the holiday. New records yesterday. Fears for First Foundation
Wall Street hit new highs yesterday on the back of a slew of weak economic data in the US, putting the idea of September rate cuts back on the table. America's service sector contracted at the fastest pace in four years, while the job market saw further signs of weakening. The index yesterday S & P500 it closed up 0,5%, a new record. Maximum in history also for the Nasdaq , + 0,9%. Dow Jones -0,1%. Tesla it closed up 6,5% at $246, just below the levels at the beginning of the year. Eyes up Apple after the news of his entry into the board of directors of OpenAI, placing one of his men. An absolutely unthinkable move until a few weeks ago, when the former San Francisco start-up seemed more like the prerogative of Microsoft. Instead Phil Schiller, head of Apple's App Store and former head of marketing, is ready to join the board of the company led by Sam Altman: for him an observer role.
Watch out for the banks. The title of FirstFoundation fell 24% yesterday, hitting its lowest since November, after the Texas lender, with a huge portfolio of multifamily real estate loans (they accounted for nearly 52% of the institution's $10,1 billion portfolio) announced a surprise capital increase of 228 million dollars due to its high exposure to commercial real estate, as Fed interest rate hikes and falling employment raise fears of more defaults.
Yesterday the minutes of the Federal Reserve meeting on June 11 and 12 in which officials said US growth was gradually cooling but “more information” was needed before gaining the confidence to cut rates. On the other hand, they added, if inflation remains stable at high levels or rises, there may be a need to raise rates. At that meeting, the FOMC decided to keep interest rates at 5,25%-5,50%, the level to which they were raised in July last year, the highest since 2001. The ten-year Treasury Note it fell yesterday to 4.35%, from 4,43% the day before, due to the terrible data on the performance of the activity in the services sector released yesterday afternoon.
Today the US stock market is closed for the Independence Day holiday, while doubts remain regarding Joe Biden's candidacy for the next presidential elections.
Record-breaking India, Chinese tech companies rise
Most Asia Pacific stock markets are rising this morning in the wake of new records on Wall Street. LMSCI Asia-Pacific index hit its highest point in over two years, with the titles technological who contributed the most to the rally. The Nikkei index of Tokyo it gains 0,5% to 40.800 points, a whisker away from the historic high reached in March. The TAIEX index of Taipei, also thanks to the +3% of Taiwan Semiconductor Manufacturing, rose by 1%. Kospi di Alone +0,7%. The BSE Sensex index at the start of the session Mumbai gains 0,2% to 80.100 points, new high in history. The Hang Seng index of Hong Kong It's about equality. The greats are highlighted Chinese tech names such as Tencent (+0,7%), Baidu (+1,7%), Alibaba (+1,7%). Stocks rise electric car manufacturers, after Reuters reported on a request from the German auto industry to the EU to cancel tariffs on Chinese cars. Shanghai Composites down slightly.
Lo yen trades at 161,5 against dollars, close to the lowest levels since 1986. Historic low also against the euro. Japanese companies are selling foreign currency debt like they haven't in years, taking advantage of robust global demand for credit. Bloomberg reports that since April 1, the start of Japan's fiscal year, companies have placed about $24 billion in securities, more than three times the previous year's figure. Speculation persists that the Bank of Japan will tighten monetary policy only gradually.
EU approval for duties on Chinese cars expected today. Those on Temu, AliExpress and Shein are also being studied
Awaiting the green light for the duties on Chinese cars by the European Commission, but Europe is divided on the measures: Germany is pushing for negotiations after yesterday the German Automobile Manufacturers' Association (VDA) said that the duties would damage Western manufacturers that export from China. The European Union is also working on a law that would impose duties on the import of low-cost goods purchased from online platforms outside the European market. A move - anticipated by the Financial Times - which would especially target Chinese retailers such as Temu, AliExpress and Shein, authentic protagonists of sectors such as eCommerce and fast fashion thanks to their products sold for just a few euros. Currently in Europe the rules provide for a threshold of 150 euros of exemption from customs duties for online purchases, intended for small gifts or personal packages.
Bags today 4th July: what to follow
Futures suggest a slightly higher opening for European stock markets, with the EuroStoxx50 futures index +0,6%. Yesterday the Ftse Mib of Milan gained 1,1%. Trading may be softer than usual today due to the Wall Street shutdown.
The yield of the German Bund is at 2,58% and that of the BTP at 3,98%, down from 4,04%. The Italy-Germany spread is decreasing to 139 basis points. The 3,24-year French OAT yields 66% and the spread between German and French debit cards fell to 1,078 basis points. Euro appreciating to 83,3, on rising expectations of a rate cut in September in the United States. Oil slightly above yesterday's levels. WTI at $87,2 a barrel. Brent at 2.358 dollars. Gold at 1,1 dollars an ounce, +59.000% yesterday. Bitcoin down to 1 dollars, down 3,8%, -XNUMX% yesterday.
Germany. Surprisingly, they decrease orders to industry in the month of May. According to the National Statistics Office, there was a decrease in orders of 1,6% on a monthly basis, while the consensus was for an increase of 0,5%, after -0,6% in the previous month (data revised from -0,2%). Compared to the same month of the previous year, orders decreased by 8,6% compared to the previous -1,8%.
Eyes up Ps after the declarations of the Minister of Economy, Giancarlo Giorgetti: for Siena an industrial operation is needed to create the third banking hub. Unipol is favored to become the reference partner of Monte. The path could be an alliance in non-life bancassurance in place of Axa. The institution could, however, internalize the joint venture in Life. On the agenda is the disposal of the 26% of the share still in the hands of the Treasury.
Leonardo ha signed with the German Rheinmetall a memorandum of understanding aimed at the creation of a new joint venture on a European scale in the field of land defense systems, in particular for the development of tanks.
Comal – a company active in the plant engineering sector for the production of energy from solar sources, listed on Euronext Growth Milan – has set the terms of the paid capital increase for a maximum amount of 4,93 million euros: 1.642.857 will be issued .7 Comal shares to be offered in the ratio of one new share for every 3 shares owned, at the subscription price of 10,7 euros. The subscription price of the shares was determined by applying a discount of approximately 3% compared to the stock market reference price on 2024 July 3,41 (8 euros). The capital increase will begin on Monday 2024 July 25 and will end on XNUMX July
Solid World Group – a company listed on Euronext Growth Milan and active in the sector of digital technologies, 3D printing as well as additive manufacturing – announced that the subsidiary SolidWorld Middle East (based in Dubai) has been awarded an order with a total value of 800 thousand euro for the supply of two 3D design and printing systems in the industrial and textile environment to be installed in Abu Dhabi. The client is a major government body in the United Arab Emirates. The supply is scheduled for October 2024. This order is added to the previous supplies awarded in May within the biomedical sector, again in the same geographical area.
Igd (Immobiliare Grande Distribuzione Siiq), presents the strategic guidelines of the new 2025-2027 industrial plan
