Stock markets are expected to open little changed today after yesterday's recovery. At the end of its FOMC meeting yesterday, the Fed did not surprise the markets: it left rates stable and underlined that inflation, although it has fallen, is still too high and this year, if anything, we will only see one rate cut. But Wall Street is breaking new records.
For the Fed, inflation is still high and only one cut this year
It was another record-breaking session for the US stock market yesterday. The S&P500 Index +0,9%, 28th all-time high since the beginning of the year. Nasdaq +1,5%. There are two reasons for the new increase. First, the latest indications on the trend of consumer prices showing a slowdown. US inflation grew by +3,3% in May, slowing down from +3,4% in April and less than expectations of +3,4%. The "core" data, net of food and energy, grew by +3,4%, also slowing down from +3,6% in April and less than +3,5%. It is the slowest pace since April 2021. The super core figure also slows down, the one also stripped of the rental component, thanks to the decline in discretionary components, for example, clothing -0,3%, airfares -3,6%, entertainment and recreational activity -0,2%.
Then came the verdict in the evening Federal Reserve which left rates stuck at 5,25-5,50% as expected, indicating that There will only be one more cut this year. In considering any adjustments to the range, we read in a note, the Monetary Policy Committee (FOMC) will carefully evaluate the incoming macroeconomic data, the evolution of the outlook and the balance of risks. The FOMC “does not consider it appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably towards 2%”. Chairman Jerome Powell began his press conference by saying that “inflation is still too high“. Of course, you observed, “it has fallen from the peak by more than 7% but it remains high” and “we want to bring it to 2%. We will need to see more positive data,” Powell then underlined, “to strengthen our confidence that inflation is moving sustainably towards 2%.” The markets were hoping for a more accommodative central bank, but the FOMC members after their two-day meeting took two rate cuts off the table by the end of the year compared to the three indicated in March.
She remained under pressure GameStop (-16,5% to 25,46 dollars, from an intraday high of 33,7 dollars), after the strong volatility recorded in the previous sessions. The company announced that it had placed 75 million shares on the market, raising resources (before commissions and expenses) of $2,14 billion. The manager specified that the money collected will be used for general purposes, including investments and possible acquisitions. Definitely a positive day for Oracle (+13,3% to $140,38), after the release of the financial results for the 4th quarter of 2023/2024 and the partnerships announced in the field of artificial intelligence. More shopping on Apple (+2,86%), after the leap achieved in the previous session.
Weak Tokyo fears Boj verdict tomorrow
La Korea stock exchange South is the best in Asia Pacific: Seoul's KOSPI index gains 1,4%. The Korean government urged the financial market control authorities to crack down in an exemplary manner on illicit activities, in particular those relating to unauthorized short selling: those who do not respect the prohibitions also risk prison. The stock market opened higher of India, BSE SENSEX index +0,3%. The bags of China are contrasted: Hang Seng index of Hong Kong +0,5% and CSI 300 of the Shanghai and Shenzhen lists -0,4%. The Nikkei index reversed course after a rising start Tokyo, -0,2% on the eve of the central bank's monetary policy decisions tomorrow. Japanese stocks are penalized by fear of a further one reduction of the amount of monthly purchases of bonds.
Stock exchanges June 13th: what to follow today. The G7 starts
European stock markets should open lower: the Eurostoxx50 future loses 0,26% and US futures are mixed (-0,12% on the Dow Jones and +0,16% on the S&P500) in the opening session the work of the G7 in Borgo Egnazia in Puglia. Three days of bilateral and plenary meetings on the main dossiers, starting from the Middle East and the war in Ukraine. Today, however, the summit will open with a dedicated session to Africa, climate and development. The session is scheduled for 12pm Palestine and Israel. From the first draft circulated in advance it seems that the G7 leaders are preparing to ask Hamas to accept the ceasefire agreement outlined by US President Joe Biden. In the document, the allies will urge Israel to de-escalate a "large-scale military offensive" in Rafah, in line with guidance ordered by the International Court of Justice. “We urge countries that have influence over Hamas” to help ensure that it accepts a ceasefire, the G7 draft statement reads. In the afternoon it will be the turn of Ukraine.
Ten-year Treasury Notes are at a yield of 4,31%, – 9 basis points. The BTP is at 3,91%, from 4,06% with the spread dropped to 138 basis points. The euro, which appreciated yesterday, is at 1,080 this morning. WTI oil at 78,2 dollars a barrel, -0,2%. Gold at $2.315 an ounce. Bitcoin at $67.050.
Leonardo is in negotiations with the German Rheinmetall for a strategic alliance on tanks. Reuters reports this, citing a source close to the discussions according to whom Leonardo is looking at Rheinmetall after the failure of negotiations with the Franco-German consortium Kmw+Nexter Defense Systems (Knds). Yesterday Leonardo announced the abandonment of negotiations with KNDS for a tank alliance, underlining that it will continue to commit to the development of a new generation of armored vehicle platforms for the Italian army – the Main Ground Combat System (MGCS) – “through cooperation with other qualified partners”. In November, Leonardo CEO Roberto Cingolani said the group wants to focus on European alliances and create regional giants.
Enel announced that Enel Peru, controlled through Enel Américas, has completed the sale of the entire shareholdings held by Enel Peru in the electricity distribution and supply company Enel Distribución Peru and in the advanced energy services company Enel X Peru to North Lima Power Grid Holding, controlled by China Southern Power Grid International, for a total consideration of approximately 3,1 billion dollars, approximately 2,9 billion euros. The overall enterprise value referring to 100% of the assets involved in this transaction is approximately 4 billion dollars (3,7 billion euros).
Eni which successfully placed 10% of Saipem, furthermore the subsidiary for renewables and the sale of electricity and gas Plenitude is ready for the stock exchange but is waiting for the right conditions to proceed, according to what the CEO, Stefano, said Goberti.
Team. The Moody's agency improved the debt rating of Telecom Italia TIM, bringing it from “B1” to “Ba3”; experts have changed the outlook to “positive”.
OVS extension closed the first quarter of the 2024/2025 financial year (the company closes the financial statements on January 31) with net sales of 352,2 million euros, up 4,7% compared to the 336,5 million obtained in the same period of the previous financial year, benefiting from the positive performance of the Upim brand. Adjusted EBITDA increased to 29,7 million from 27,5 million euros; as a result, the margin increased from 8,2% to 8,4%. The adjusted pre-tax result rose to 10,1 million euros compared to 7,7 million in the 1st quarter of 2023/2024 (+31,3%). At the end of April 2024, adjusted net financial debt amounted to €254,2 million.
To be monitored stellantis, on Investor Day.
ATMs and Fsi announced the completion of FSI's investment in Bancomat's capital and the appointment of the new CEO and the new Board of Directors. Following the investment, FSI represents the first shareholder of the Company with a stake in the capital of 42,9% and, together with the banks signing the shareholders' agreement (Intesa Sanpaolo, Iccrea Banca, Banco BPM and BPER), 74,7% . The new Board of Directors and the new CEO and general manager of the Company, Fabrizio Burlando, have been appointed.
Giglio Group announced a strategic agreement with Elior, the main group active in Italy in collective catering services and in the travel sector. It is expected that Giglio Group will become the exclusive supplier of Frecciarossa merchandising, initially on board all Frecciarossa fast trains, and then extending the service to other fast trains.
irce, a company listed on the STAR segment and active in the sector of conductors for winding electrical machines and in the electric cable sector, announced that the board of directors has approved the investment project in China aimed at expanding the group's production capacity in the conductor sector for winding, with particular reference to the local market for the production of motors for electric vehicles and for energy generation and transport.
Today's data. At 9 am the final harmonized inflation data for May is published Spain (preliminary: +3,8% year-on-year), at 11 am industrial production in April'Eurozone (prior: +0,6% month over month; consensus: +0,2% month over month) and as of 14:30 p.m., weekly jobless claims Use (previous: +8.000 to 229.000) and producer prices in May (previous: +0,5% month-on-month; consensus: +0,2% month-on-month).
