The breeze of optimism that had swept through US stock markets in hopes of more lenient measures on tariffs has been swept away in Asia from a strong wind full of anxiety for the impact of a trade war total for the damages it could cause to theglobal economy and corporate profits. Trump added a last night new form of reciprocal tariff on Venezuela. So Chinese tech companies collapse, driven by Xiaomi e Alibaba, while Toyota takes a step back in electric. Yet Wall Street had closed sharply higher, with the Magnificent Seven very strong and the sharp increases of Amazon e Tesla.
Meanwhile, peace negotiations continue in Ukraine and Kiev embraces the idea of a total ceasefire.
Trump Punishes Venezuelan Customers With 'Secondary Tariffs'
Investors are eyeing with concern the April 2 tariff announcement, which Trump has dubbed “Liberation Day” in reference to retaliation against trading partners he has long accused of “ripping off” the United States. The US president found a new economic policy weapon yesterday, threatening what he called “secondary tariffs” on countries that buy Venezuelan oil to stifle its oil trade with other nations. The threat, delivered in a post on Truth Social and later confirmed in an executive order, specifically said countries would face 25% tariffs on trade with the US if they bought oil and gas from Venezuela, which is already under heavy US sanctions. The move is intended to pressure the country over the “tens of thousands of high-level and other criminals” that Trump said Venezuela has sent to the US. oil prices reverse (Wti -0,26% at 68,93 dollars per barrel and Brent -0,25% at 72,19 dollars per barrel)
In other statements, on the one hand he warned that the car fares will arrive soon, on the other hand he said that some trading partners would receive possible exemptions or reductions.
Wall Street up yesterday. Amazon (+3,59%), Tesla Motors (+11,93%)
Yet yesterday the US stock markets closed higher with investors hoping for a measured approach on tariffs, after an index of US manufacturing activity that fell in March and the PMI services rose. The Dow Jones ended the day with an increase of 1,42%, to 42.583 points; in the same line, the S&P-500 closed on the run, ending trading at 5.768 points, its highest in over two weeks. The Nasdaq 100 jumped up (+2,16%); in the same trend, the S&P 100 was on a roll (+1,81%). Of particular note Amazon (+ 3,59%), Tesla Motors (+11,93%), The index of Magnificent Seven (+3,46%) achieved its best session in the last two months. Dollar under 1,08 against euro for the first time in two weeks.
China weighed down by tech, Xiaomi and Alibaba collapse
Le Chinese stocks They led the losses in Asia without being able to take advantage of the Wall Street rally. The index of Chinese tech stocks in Hong Kong has fallen as much as 3,8%, its biggest decline in three weeks, with Alibaba and Xiaomi among the biggest losers. Stocks in Shanghai and Shenzhen are at par. Hong Kong's Hang Seng index is down almost -2%.
Xiaomi, based in Beijing, fell as much as 6,6% after announcing a $5,5 billion capital increase. The stock had more than tripled from its August low, becoming the best performer on Hong Kong's Hang Seng index. Just before Asian trading opened overnight, the Chinese consumer electronics giant said it had placed 800 million shares at HK$53,50, a 6,6% discount to Monday's closing price. The proceeds will be used to accelerate business expansion, invest in research and development and fund other general corporate purposes.
The Alibaba is falling, slipping more than 3% after its president Joe Tsai warned of a potential bubble in the construction of data center, arguing that the pace of construction could outpace the initial demand for services for the'artificial intelligence. The rush by big tech companies, hedge funds and others to build massive collections of servers in the U.S., Asia and around the world is starting to look indiscriminate. Many of these projects are being built with little idea of who the customers will be, Tsai said at HSBC’s Global Investment Summit in Hong Kong. Alibaba itself, which said in February it was betting big on AI, plans to invest more than 380 billion yuan ($52 billion) over the next three years.
In Japan, Toyota Takes a Step Back on Electric Cars
The Nikkei index of Tokyo gains 0,3% and the yen consolidates its positions around 150 to the dollar, after three consecutive sessions of decline. Japan discovers inflation: Japanese Prime Minister Shigeru Ishiba is about to present "powerful" measures of fight against inflation on the occasion of the 2025 fiscal budget. Toyota will postpone construction of a lithium-ion battery factory in Fukuoka Prefecture due to low demand for electric vehicles globally. The Japanese press anticipates this by quoting a company source familiar with the dossier, explaining that Koji Sato, president of the car manufacturer, should soon go to Fukuoka to inform the prefectural government officials of the decision. In addition to a lower-than-expected demand for electric vehicles, the decision is also based on theincrease in plant budgets, due to soaring material and labor costs. The automaker’s wholly-owned Toyota Battery Co. had initially planned to build the factory this year, with battery manufacturing set to begin in 2028. The goal was to double the range of electric vehicles to 1.000 kilometers and reduce production costs by 20 percent for next-generation Toyota-branded cars. The company is also considering pushing back the 2026 release date of its first next-generation EV model, a sedan from the luxury brand Lexus, because it needs more time to ensure the quality of the new technologies involved.
Stock market down Alone, Kospi index -0,5%. Hyundai Motor rises against the trend, +3%. The White House has announced on X that the Korean automaker will soon announce a investment plan in the United States $20 billion. In addition, Morgan Stanley has initiated coverage, with an Overweight rating. Samsung Electronics is down 1%: the company announced that co-CEO Han Jong Hee died last night of a heart attack.
Attention during the Asian hours was focused on Indonesian rupiah, fell to its lowest level since the Asian financial crisis in the late 90s on the back of the dollar's overall strength and concerns about the fiscal health of Southeast Asia's largest economy. Investor confidence is falling in Indonesia, where the stock market was hit hardest last week by investor outrage over Indonesian President Prabowo Subianto's massive social spending plans.
European stocks seen weak, eyes on Banco Bpm, Stellantis and Pirelli
European stock markets are following the Asian decline and are seen opening lower on the basis of futures at -0,21%, in line with US futures (-0,22% on the Dow Jones and -0,21% on the S&P500).
CarsIn Europe, car sales fell 3,1% in February from a year earlier, the biggest decline in five months, as uncertainty about the economy prompted consumers to hold off on major purchases. Stellantis, born from the merger between FCA and Peugeot, did worse, recording a 16,2% drop in registrations for a total of 155.970 units. Market share remained stable at 16,2% compared to the previous month. Also watch out for Pirelli due to the clash between management and Chinese partners.
Anima. The Caltagirone group has decided to join the takeover bid launched by Banco Bpm, contributing its 5,84% share. With this membership and considering the share held by Banco Bpm and the commitments already received, the bank led by Giuseppe Castagna has potentially exceeded 50% of Anima.
Azimuth has acquired a minority stake in two subsidiaries of Red Med Capital, a Moroccan investment bank. The first is Red Med Asset Management, a company that manages 1,7 billion euros in assets and has grown by an average of 2017% each year since 30. Its market share is 3% and Azimut has acquired 29%. The second subsidiary, on the other hand, is Red Med Securities, a broker that offers trading, custody, account management and assistance services to issuers. In this case, the market share is 4,4%, up from 2,3% in 2023, and the Italian holding company holds 25%.
Enel. Through its subsidiary Egpe, it has signed an agreement with Masdar, the leader in clean energy in the United Arab Emirates, for the sale of a minority stake, equal to 49,99% of the share capital, in Egpe Solar 2 for 184 million euros. Remaining in the energy sector, it should be noted that Hsbc has raised the target price on Snam from 5 to 5,10 euros (hold rating).
Tim the hearing at the Court of Cassation on the appeal of the Presidency of the Council of Ministers against the ruling of the Court of Appeal of Rome that ordered the Italian state to reimburse 27 billion euros to the telecommunications giant has been set for May 1.
nexi. S&P upgraded the rating to BBB- with a stable outlook.
Terna meets the board of directors on the 2024 budget and the update of the 2024-2028 industrial plan.
