The prospects of a high tax expenditure and continued monetary easing in the world's largest economy create a powerful cocktail, encouraging global actions to close in rise after a turbulent week. Wall Street saw record highs yesterday, helping to bring theMSCI index of global stocks at historical maximum with a weekly increase of 3,3% after the Federal Reserve cut interest rates again by 0,25 percentage points. The move is in line with expectations and follows the 50 basis point cut made at the meeting last September. "We have taken another step to reduce the monetary brake, we remain confident that stability can be maintained," explained the president of the institution, Jerome Powell in the press conference. And even a market, that Chinese, which was expected to be weak under the weight of the rates proposals from Donald Trump, is doing nothing of the sort. The Chinese Blue Chips have risen nearly 6% this week in anticipation of a bazooka Stimuli from Beijing to counter the impact of any trade war. The Standing Committee of the National People's Congress of China concludes its week-long session today with a press conference that could fuel – or explode – expectations.
Nvidia Returns to Market Cap Throne at All-Time Record of $3,36 Trillion
The actions of Nvidia have reached a historical maximum last night and the chip maker became the first company in history to exceed the stock market value of 3,6 trillion dollars, as Wall Street continued the momentum sparked by Donald Trump's return Trump at the White House. Shares of the leading artificial intelligence chipmaker rose 2,2%, buoyed by investor optimism about Trump's promised tax cuts and less stringent regulations. Nvidia beat Apple's previous record for market capitalization, which closed at $3,57 trillion on Oct. 21. Apple shares rose 2,1% on Thursday, reaching a market value of $3,44 trillion. Nvidia, Microsoft and Apple have been battling it out in recent months in the market capitalization race. Microsoft's market value stood at nearly $3,16 trillion, with its shares up 1,25% on Thursday.
According to LSEG, analysts on average expect Nvidia to increase its quarterly revenue by more than 80%, to $32,9 billion, when it reports results on November 20. The technology index S & P 500 has risen more than 4% in the two sessions since Trump's election victory on Tuesday.
Tokyo Positive, China Cautious Awaiting Stimulus Directions
Asian stocks, which started sharply higher on Wall Street, have slipped from their highs but remain mostly in the green. Investors have become more cautious ahead of China's stimulus announcements later in the day after the end of the Beijing Legislative Meeting, lasted a week. MSCI's gauge of Asia-Pacific shares was up 0,33% by 7 a.m. EDT after rising 0,78%. The index has maintained a 2,7% gain this week, having quickly recovered from a sharp decline on U.S. election night that had raised concerns about trade tariffs, especially in China. Optimism about a stimulus response from Beijing has kept Chinese shares buoyant throughout the week, including a 3% gain in China's Blue Chips Mainland Thursday: Index is down 0,5%, reversing 1,3% gains at the open. Hong Kong's Hang Seng is down 0,6%.
Il Nikkei Tokyo is up 0,6% today and 4,1% from the previous week.
Australia's benchmark stock rose 0,8% and Taiwan's benchmark gained 0,6%. South Korea's Kospi slipped 0,2%.
European stock markets positive: eyes on Leonardo, Mps and Tenaris
European stock markets are seen opening higher, based on indications from the Eurostoxx Future at +0,2%.
Monte Paschi Bank closed the first nine months of the year with a profit of 1,57 billion euros, up 68,6% compared to the same period of 2023, to which the third quarter contributed 407 million euros. The fully loaded Cet1 ratio capital strength indicator, as stated in a note, grew by 28 basis points, to 18,3%, including the third quarter profit and net of the dividends that Mps intends to pay with a pay-out (ratio between profit and coupon) of 75%
Leonardo closes the first nine months with orders of 14,8 billion euros, up 7,8% compared to the same period in 2023, revenues of 12,1 billion, up 12,4% and an EBITA of 766 million, up 15%. The company confirms the guidance for the full year, released last March. The CEO, Roberto Cingolani, said that the guidance would increase if there were no exogenous problems, including the Boeing crisis, while the industrial plan will be updated in March next year.
nexi achieved 911,1 million euros of total revenues in the 3rd quarter of the year (+5,1% y/y), while in the first 9 months of the year they amounted to 2.571,6 million (+5,6% y/y). The group's EBITDA in the quarter was equal to 522,9 million (+6,2% y/y) while in the first 9 months it was 1.349,9 million (+7,3% y/y, with an EBITDA margin growth of approximately 82 basis points). For 2024, in light of a persistent complex macroeconomic scenario, Nexi confirms the following targets: revenue growth mid-single digit y/y; EBITDA growth mid-to-high single digit y/y, with a margin expansion of over 100 basis points; excess cash generation of more than 700 million. Net leverage: down below 2,9x EBITDA, including previously announced M&A transactions and the effects of the share buyback program (~2,6x on an organic basis).
Tenaris: Cowen, Oddo, Stifel, reward the quarterly by setting a higher target.
Pirelli Operating profit rose more than expected in the third quarter, driven by volume growth, product range and efficiencies, the tire company said on Tuesday.
Unipol closed the first nine months of the year with a net accounting profit of 724 million, down 5,9% on the year after having spent a solidarity fund for the early retirement of approximately 500 employees for an amount equal to 149 million euros gross of taxes. The accounting result considers the contribution of the consolidation of the stake in Bper and Pop Sondrio only for the first half of the year. On a like-for-like basis, i.e. including the contributions of the two banking stakes at the end of September, calculated on the basis of recently released financial information, it stands at 834 million euros. Direct insurance collection, gross of reinsurance transfers, is equal to 11,4 billion, up 9,1% on a like-for-like basis, with non-life premiums up 8,7% and life premiums up 9,6%
The combined ratio stands at 93,9%, an improvement compared to 98,6% in the first nine months of 2023, which had also been affected by a higher incidence of claims from natural disasters. On the equity front, the Solvecy ratio at 30 September 2024 is equal to 224% compared to 215% at the end of December.
