European stock markets are also on a positive note this morning after yesterday's good recovery. Nvidia shone at the top of world capitalization yesterday, overtaking the other giants Apple and Microsoft. Hong Kong is also positive. Today Saras, Unicredit and Enel are to be followed. The EU infringement procedure starts today.
On Wall Street Nvidia reaches the world capitalization record
Wall Street closed again on the rise and the technology sector is still in the forefront as it continues to make progress, with the analysts they exclude whether it's a bubble. Apple, Nvidia and Microsoft compete in rotation for the record of the largest capitalization in the world. Just yesterday it was Nvidia's turn which, with a capitalization that reached 3.326 billion dollars in the afternoon, surpassed Microsoft (3.321 billion) and Apple (3.277 billion) for the first time. And analyst Hans Mosesmann of Rosenblatt Securities even predicts, as Bloomberg reports, that the semiconductor giant could reach the peak of 5 trillion in capitalization next year. L'S&P500 Index it closed up 0,3%, its thirty-first record of 2024, with Nvidia up 3,5% to $135. Change equal to +0,15% on the Dow Jones, on parity the Nasdaq 100 (+0,03%) and on the same trend, without direction the S&P 100 (+0,17%). At the top among the Wall Street giants, Goldman Sachs (+1,61%), Verizon Communication (+1,57%), Home Depot (+1,25%) and JP Morgan (+1,04%). Ten-year Treasury Note has a yield of 4,22%. The differential with the two-year bond is -48 basis points, the lowest it has been for one year.
Today the financial markets in the United States are closed for the June 19th holiday (Independence and Emancipation Day which commemorates the liberation of slaves). Attention remains focused on comments from several Federal Reserve officials expected later today.
Asian stock markets reflect US enthusiasm. Brilliant Japanese exports
The Asia Pacific stock markets are most sensitive to the themes of artificial intelligence and semiconductors, following Wall Street this morning. For example the Hang Seng index of Hong Kong +2,32% with Chinese video sharing site Bilibili gaining +12% after JP Morgan promoted it to Overweight. Samsung Electronics rose by 1,38% and SK Hynix by 2,13%. The Kospi index of Alone is up 1% to 2.790 points, the highest since March 2022. The Taiex index of Taipei +1,8%. Less brilliant, but positive, was the change in the Nikkei Tokyo, +0,3%. The Japan's exports they grew at the fastest pace since the end of 2022, thanks to the weakness of the yen which increased their value. In May, the increase was 13,5% from a year ago, the sixth month of increases, the Finance Ministry said Wednesday. Economists expected a 12,7% increase. The CSI 0,4 index fell by 300%. Shanghai and Shenzhen. Investors monitor what emerges from the Lujiazui Forum, where speakers include the head of the markets regulator Wu Qing and the governor of the People's Bank of China Pan Gongsheng.
The Japanese Norinchukin Bank said it wanted to sell about 10.000 trillion yen ($63,4 billion) of U.S. and European government bonds to stem losses from bets that went wrong when interest rates overseas remained higher than expected. The Agricultural, Forestry and Fisheries Cooperative Institute estimated a net loss of about 1.500 billion yen for the current year, three times higher than the previous estimate
Public accounts, the EU infringement procedure arrives today
It is a widely awaited decision. It is true that the new rules of the Stability Pact apply but the procedures remain substantially the same since the old parameters which set the maximum debt ceiling at 60% of GDP and 3% for the deficit are fully in force. What the European Commission is preparing to communicate is the start of the procedure for excessive deficit for which Italy will need one 10 billion a year correction. November it will be the new Commission that sets through the new “recommendations” the path of return with any correction that will be required, keeping in mind that what matters, in light of the new rules, is now the "technical trajectory" expressed in terms of net expenditure which concerns all countries with debt exceeding 60% of gross product or with deficit exceeding 3% of GDP.
Basel 3 postponed by one year
The EU is postponing the Basel 2026 regulatory crackdown on banks' market risks by one year, to 3. Mairead McGuinness, the EU Commissioner for Financial Services, made this known yesterday in Frankfurt. Europe has chosen to respond in this way to the slowdown in regulation in the USA.
Stock market today 19 June: what to follow
Europe's stock markets are expected to open in slight increase with the Eurostoxx50 future rising by 0,12%. Yesterday, on the second day of recomposition of stocks and bonds, Milan's FtseMib index gained 1,2%. The ten-year Bund closed at 2,39%, just below the level of the day before, the ten-year BTP at 3,88%, from 3,94%. The Italy-Germany spread fell further, to 149 basis points, from 156 the day before, the ten-year OAT to 3,17% with the French Bund/OAT differential dropping slightly to 77 basis points. Euro dollar little moved at 1,073. Oil is rising, reaching the highest levels of the last seven weeks. Brent and WTI +0,1%, yesterday +1,3%.
Saras. Varas, a company wholly owned by Vitol, has launched a mandatory public takeover offer for all of its shares Saras listed on Euronext Milan. The operation arises as Vitol holds, directly and indirectly through Varas, 45,48% of the company's share capital. The offer will concern a maximum of 518.486.282 shares, representing approximately 54,52% of Saras share capital. The fee is set at 1,6 euros for each share tendered. The offer period will be agreed with Borsa Italiana in compliance with the established terms. The offer is aimed at the revocation of Saras from trading (delisting) on Euronext Milan. The investment in Saras is part of Vitol's strategy to invest in key geographies in the oil, gas and sustainable solutions sectors. The transaction represents an opportunity for Vitol to invest in an important refining and energy asset in the Mediterranean and to grow in the Italian and Mediterranean regions, preserving and enhancing the legacy that the Moratti family and management team have built for Saras.
Golden Goose has withdrawn from the listing, the announcement was made as a surprise at the end of a process that had led to setting a debut in the lower part of the initial range. The note speaks of a "significant deterioration in market conditions following this month's European Parliament elections and the calling of general elections in France". The sneaker company specifies that "in this context, Golden Goose's activities continue to perform well". Golden Goose's share price, the note concludes, "will be re-evaluated in due time".
Enel Finance International, a financial company controlled by Enel, has launched a multi-tranche Sustainability-Linked Bond aimed at institutional investors in the US and international markets for a total amount of 2 billion US dollars, equivalent to approximately 1,9 billion euros. The issue, guaranteed by Enel, received oversubscriptions approximately 3 times, totaling total orders of approximately 5,6 billion US dollars. The proceeds of the issue are used to finance the group's ordinary needs, including the refinancing of maturing debt.
Unicredit it wants to reduce the risk on part of its credit portfolio in Italy and Germany and is working on three different operations which should involve the transfer of risk for a total stock of 8,5 billion euros. The objective is to reduce capital absorption, freeing up resources that could prove useful for boosting lending and supporting any extraordinary operations.
Campari has successfully placed an unrated bond with a duration of 7 years, aimed only at institutional investors. The offer concerns a bond which has a total nominal amount of 220 million euros and matures on 25 June 2031 and pays a fixed annual coupon of 4,256%. The bonds will be issued at an issue price equal to 100% of the nominal value.
Leonardo presented the new generation AW249 exploration and escort helicopter at the Eurosatory show in Paris, the result of a close collaboration between the Italian Ministry of Defense and the aerospace group, called AH-249A NEES.
Generali. Giovanni Liverani, long-time head of Germany, is considering leaving the insurance company, according to MF
Rating. S&P Global raised its outlook by Iccrea Banca bringing it to positive from stable, confirming the BBB- rating and confirmed the same rating for Bpm bank e B for Bank with a positive outlook and for the People of Sondrio, la Banca Popolare dell'Alto Adige Volksbank, the Institute for Sports Credit and Mediocredito Centrale, with a stable outlook.
Today's data. Inflation in the United Kingdom in May 2024 is almost in line with expectations. According to the monthly report from the Office for National Statistics (ONS), consumer prices show a +0,3% on a monthly basis, after the +0,3% of the previous month and compared to the +0,4% expected. On an annual basis, inflation growth was 2%, (+2% consensus), after reporting an expansion of 2,3% in April. Also in the United Kingdom, production prices in May on a monthly basis were -0,1%, down compared to the previous +0,3% (the forecast was +0,1%). On an annual basis +1,7%, up compared to the previous +1,1%.
