Square Business regains European leadership and closes today with an increase of 1,9% to 34.363 basis points, after remaining a little behind yesterday due to the ex-dividend date of eight blue chips. Today, banks, pharma and industry shine on the main list, in a choral joy that also includes Telecom, +1,79% on the day in which the assembly voted on the list presented by the outgoing board of directors and CEO Pietro Labriola confirmed, supporter of the plan to sell the group's network to KKR. What paved the way for this result was the decision of the main shareholder Vivendi to abstain.
Risk appetite consolidates from Frankfurt to New York
The climate remains good, for the second consecutive day, also on the other European price lists and at the start of Wall Street, in the wake of quarterly results exceeding estimates and waiting (in New York) for the magnificent seven to also announce their accounts in the next few days. Among these will be Meta Platforms and Microsoft, but the first will be Tesla this evening. The stock currently gains about 2%, but has lost more than 40% since the beginning of the year and almost 60% in two years, due to a price war in the sector and a decline in demand for electric vehicles. Meanwhile they travel supported General Motors (+ 6,8%) and Spotify (+13%) on accounts and forecasts beyond estimates.
In Europe they are strong Frankfurt +1,61% and Madrid +1,7%, slightly more cautious Amsterdam +0,96% and Paris +0,81%. It's in the queue London +0,22%, which updated its historical high during the session and yesterday was the best on expectations of a quicker than expected BoE to cut rates.
The quarterly numbers of important companies such as Novartis (+1,81%), which raised the prospects for the entire year.
European manufacturing suffers, but the services sector expands again in April; weak demand weighs on US SMEs
Some ideas for investors were also offered today by the macroeconomic data, given that the Eurozone composite index rose to 51,4 in April and also Germany, the bloc's leading economy, surprisingly returned above the threshold of 50 which separates contraction and expansion. The service industry continues to be the driving force, while manufacturing in the single currency area continues to drop to 45,6 from 46,1 in March. The services PMI index instead rose to 52,9 from 51,5.
In the USA, however, the preliminary picture for last month is below estimates and at the lowest level for four months: manufacturing falls to 49,9 points, in the contraction zone (from 51,9 in March); the services sector fell to 50,9 points, from 51,7 last month and lower than forecast. A weaker trend in demand would slow down the US industry.
Euro recovering
The SME data thus offered support toeuro, simultaneously slowing down the dollar, for a change in the 1,07 area.
However, the indications offered are not altering the forecasts on the timing of a first rate cut by the ECB, while they could restore some hope regarding the Fed's action.
For the ECB, we remain focused on June. The words of the vice-president of the ECB contribute to strengthening this hypothesis, Luis de Guindos, who in an interview with Le Monde on 16 April, published only today, claims that "if things proceed in the same direction as in recent weeks, we will ease our restrictive monetary policy in June". Bundesbank hawk Joachim Nagel instead emphasizes prudence, while admitting that "if the favorable March inflation forecasts are confirmed in the June projections and if the incoming data support these prospects, we will be able to consider a rate cut."
In the USA, an update in GDP and inflation is expected this week, even if the markets are now looking at a first cut after the summer and are leaning towards just 38 basis points, against the 150 basis points hypothesized at the beginning of the year.
According to the FT, investors are even considering the possibility of another rate increase. The basic scenario – underlines the financial newspaper – continues to reduce financing costs, but the options market shows a probability of an increase of 20%.
Meanwhile, over the course of three days, the US Treasury Department will ask the market for 183 billion dollars, spread across two-year bonds (at auction today, for a value of 69 billion), five-year bonds (tomorrow, for 70 billion ) and seven years (Thursday, 44 billion). And right now two-year yields are hovering just below 5%.
Piazza Affari closes with almost all blue chips in green
The session was particularly brilliant for Business Square, which sees a long line of banking stocks among the best stocks of the Ftse Mib: Bpm bank + 3,8% Unicredit + 3,52% Bper + 3,43% Understanding + 2,65% Ps + 2,73%.
Among the utilities are highlighted A2a +3,74% ed Ivy +2,58%, while in industry the accelerator is back on track Ferrari + 3,14%.
Bene nexi, +2,92%, with Equita recently confirming its buy on the stock in view of the digital payments company's accounts.
In healthcare it is confirmed in money Recordati + 2,94%.
The only big one with a slight decline is Tenaris -0,74%, in a well-bought oil sector, while crude oil prices rise today (Brent +1%, 87,9 dollars).
It aligns with the trend of the barrel Eni, +1,17%, while Saipem it appreciated by 1,53%, at the end of a volatile session which had seen it start lower, up disappointing numbers in the quarter. However, the stock regained strength when the CEO confirmed the commitment to the coupon in 2025. Alessandro Puliti also said that the oil service is in advanced negotiations for two important projects in West Africa.
Outside the main basket it continues to make sparks Bioera, +25,25%, still driven by the news of the investment agreement with Hara Immobiliare for the rescue of the company as part of the negotiated crisis settlement procedure.
It makes a leap of 10,87% Ivs Group, approaching the price of 7,15 euros per share proposed in theTakeover bid for E-Coffee Solutions, a company controlled by the Lavazza group, will launch all the shares for delisting.
Stable spreads and rates
The Italian paper remains in balance, despite the cyclopean debt, the heaviest in the euro area. The yields of ten-year BTPs (3,81%) and Bunds of the same amount (2,48%) are stable, for one spread not far from the levels of the day before at 133 basis points.
