Today's session can only be cautious and guarded with investors having to metabolize on one hand the election results, on the other the monetary landscape opened after last week's events. The trend is down with index futures and weak euros.
From political uncertainties
From the vote for the weekend's European Parliament elections the "Ursula majority” seems to have held up, and, in all likelihood, will continue to govern the European Union for the next five years with von der Leyen as President of the Commission. But the focus now is above all on the destabilization caused in France and Germany from the advance of the far right. Marine Le Pen's far-right party triumphed in the European elections and the President Emmanuel Macron it took note of this by dissolving the National Assembly and calling early legislative elections between 30 June and 7 July. In Italy the premier Giorgia Meloni it drags Fratelli d'Italia to 28,9% and its is confirmed as the first party overall.
The euro is declining by 0,6% to 1,075, marking the lowest in the last month.
To monetary uncertainties
Last week the markets suffered the blow of a clear slowdown in the path of rate cuts by both the ECB and the Fed. ECB as is known, it cut the cost of money by 25 bps on Thursday, but the decision was followed by comments from various members of the Governing Council of the European Central Bank who confirmed that the rate cut decided yesterday will remain isolated in the absence of data confirming the decline in inflation.
But even on the other side of the Atlantic, enthusiasm waned after stronger than expected data on non-agricultural payrolls signaled that the US labor market remains robust, clouding hopes of interest rate cuts by the Federal Reserve in September. On Friday, the Dow Jones lost 0,22% to 38.799 points, while the S&P500 dropped 0,11% to 5.347 points, after setting a new all-time high at 5.375 points. Negative performance also for the Nasdaq (-0,23% to 17.133 points). This week will be marked by the monetary policy meeting of the Federal Reserve, with the statement scheduled for Wednesday.
Japan rises on the back of GDP slightly better than expected
The Japanese stock market is rising after a declining start to the session, the Nikkei index gains 0,92% thanks to the push of Sharp, +5%, of Hitachi +4,3%, by Dai-ichi +3,5%. In the January-March quarter, the Japanese GDP contracted at a pace nearly identical to what was initially estimated, due to slowing spending by households and businesses, according to government data revised Monday. Real gross domestic product contracted 1,8% year-on-year in the first quarter of 2024, compared to the 2,0% contraction recorded in preliminary estimates released in mid-May. The contraction was 0,5% compared to the previous quarter. The revised data shows consumer spending fell 0,7% from the previous quarter, unchanged from the preliminary reading. Capital spending fell 0,4%, compared to a 0,8% decline in preliminary estimates.
In China The stock exchanges in Hong Kong and Shanghai are closed. Singapore's Straits Times index fell slightly. Seoul (-0,26%). Mumbai was slightly positive (+0,13%).
Stock market today 10 June: what to follow
European stock markets should open lower, with a EuroStoxx50 future marking -0,4%. US futures flat.
At 10am the Italian industrial production is released and at 10.30am the Sentix index on the expectations of European investors. In the morning there will be a speech by Robert Holzmann, the member of the ECB board who, according to rumors, voted last week against the decision to cut interest rates by a quarter of a point.
The Fitch agency confirmed for ERG a long term issuer default rating (IDR) of “BBB-” with a stable outlook, and a senior unsecured rating of “BBB-“. The confirmation reflects the group's business model and asset portfolio, as well as the "quasi-regulated" business profile which provides that more than 85% of the group's EBITDA is stabilized by tariffs determined through participation in government auctions or power purchases long-term agreement (PPA).
Prysmian. The board of directors approved the launch of a share buyback program for a maximum amount of 375 million euros and the exercise of the early repayment option for a convertible loan amounting to 750 million euros.
Terna renewed the bond issue program and raised the maximum amount to 12 billion euros.
That has formed a joint venture with Acquedotto Pugliese to participate in the tender to purchase 30% of the Acqua del Sud company which is currently owned by the Ministry of Economy.
stellantis announced that in the sessions between 31 May and 6 June 2024 it purchased 5.144.385 treasury shares at a weighted average price of 20,2091 euros, for a total amount of 103,96 million euros. Since 23 May 2024, Stellantis has purchased a total of 13.964.912 shares, for a total amount of 285,36 million euros. As of June 6, the automotive company held 186.529.755 of its own shares, equal to 4,63% of the capital.
Focus on Saes Getters. With reference to the voluntary public takeover offer promoted by SGG Holding, the offeror increased the offer price from 26,3 euros to 28 euros for each tendered share. Saes Getters ended the session on Friday 7 June 2024 at 27,25 euros.
