But the long-awaited agreement commercial between USA and China, is there or isn't there? Investors are wondering this as they are already reducing their hopes for the first few hours following the conclusion of the interviews in London because they don't see yet details and concrete steps. And as if that were not enough, the geopolitical tensions in Middle East are increasing, aggravating the risk that the increase in crude oil prices fuel inflationary pressures. Wall Street closed down yesterday, Asian stock markets followed suit and the outlook for Europe cannot be very different. In the uncertainty, gold obviously rises, while theEuro above 1,15 against the dollar.
Xi Jinping has not yet signed the agreement, the EU is trailing behind
The long-awaited talks between the US and China can at least be seen as a fragile truce for the time being. For starters, the Chinese president Xi Jinping has yet to give his approval to the agreement, despite Trump announcing that the trade deal is “done,” hours after Washington and Beijing negotiators agreed on a “framework.” But they remain details still to be defined on how the new tariffs will be implemented, while US export restrictions on high-end AI chips are still in place. With the Deadline July 9th on rapidly approaching global tariffs, Trump has returned to his one-sided style of economic policy, announcing that it would sent letters within a week or two outlining the terms of trade to dozens of other countries: a “take it or leave it” deal will be offered.
Additionally, Commerce Secretary Howard Lutnick said that theXNUMX-XNUMX business days It will probably be among the last agreements concluded by the United States.
Markets are hoping for another “Taco” moment, an acronym coined by Robert Armstrong of Financial Times, which stands for “Trump Always Chickens Out.”
Next week, the windfall could come from central banks that could shed new light on the outlook for the global economy. The US Federal Reserve, along with the Bank of Japan and the Bank of England, are expected to announce their monetary policy decisions.
Wall Street closes lower as tensions rise in the Middle East
The S&P 500 index closed yesterday down, erasing already modest gains, because of concerns about the lack of details of the agreement China-USA, those for the new tensions have been added in Middle East. The President of the United States has announced that American personnel will be relocated outside the Middle East because “it could be a dangerous place,” adding that the United States will not allow Iran to possess a nuclear weapon. According to US and Iraqi sources, reported by Reuters, The United States is preparing a partial evacuation of the Iraqi embassy and will allow military personnel to leave locations in the Middle East due to heightened security risks in the region. A senior Iranian official said Tehran would strike U.S. bases in the region if the nuclear negotiations will fail and a conflict with the United States will break out. The security crackdown comes as President Donald Trump has shown less optimism about the possibility of reaching a deal with Iran that would limit its nuclear program and avert a potentially catastrophic new military escalation. “I am less confident now than I was a couple of months ago,” he told New York Post – something happened, but I am much less convinced that an agreement can be reached.”
The index S & P 500 fell by 0,27%, closing the session at 6.022,24 points. The Nasdaq fell by 0,50% to 19.615,88 points, while the Dow Jones The Industrial Average closed essentially unchanged at 42.865,77 points.
Wednesday, the expected data on the iUS inflation which indicated a more moderate path than expected. On an annual basis, headline inflation came in at 2,4%, lower than the 2,5% increase estimated by economists surveyed by Reuters. The data provided support to the bond market which recovered yesterday, also on the basis of a satisfactory outcome of the auction on 10-year US government bonds yesterday. Today the most significant test on the XNUMX-year maturity.
But while past inflation is still moderate, companies are concerned about the impact of tariffs in the future. Inditex owner of Zara, sounded the alarm: it was the latest to publish a disappointing quarterly report and to flag headwinds from trade uncertainty.
Amazon lost 2% and Nvidia it fell by 0,8%. Tesla rose 0,1% after the CEO Elon Musk says he regrets it of some negative posts made last week on social media about Trump, as they had gone “too far”.
Asia weak. Only purchases in Seoul by foreign investors stand out
Stocks in Asia Pacific are mixed after Wall Street closed lower. Stocks in the China are weak. The CSI 300 index of the Shanghai and Shenzhen stock exchanges was flat, Hong Kong's Hang Seng was down 0,5%, Taipei's Taiex was down 0,7%. The stock exchange Tokyo is down 0,6%. Yen appreciates to 144, from 144,5 yesterday.
Kospi Index of Seoul still on the riseSeoul's Kospi index gained 0,5%, its sixth rise in seven sessions, hitting new highs highest since March 2022. The foreign investors They also accelerated purchases of South Korean bonds at a record pace in May, highlighting growing interest in the asset class ahead of the country’s presidential election and inclusion in a major global index. Overseas investors bought a net 11,34 trillion won ($8,3 billion) of listed bonds last month, according to a statement from the Financial Supervisory Service. That was the largest monthly inflow since Bloomberg began compiling the data in 1998, extending strong momentum in April. Foreign holdings of outstanding listed bonds rose to 300,5 trillion won during the period. Overseas investors had been net buyers of South Korean bonds for 31 consecutive sessions through June 10, the longest streak since 2023.
Geopolitical tensions in the Middle East are rising, exacerbating the risk that oil prices will rise. crude fuel inflationary pressures. Brent and West Texas Intermediate futures rose yesterday to two-month highs, up 4% to nearly $70 a barrel each. This morning, oil fell half a point, while thegold, which reached $3.380 an ounce.
The dollar weakens: theeuro appreciates for the fourth consecutive session on the currency of the United States, 1,151. The euro hit a seven-week high and is up 11% this year, poised for its biggest annual gain since 2017.
European stocks seen opening lower. At Piazza Affari eyes on Pirelli, Leonardo
European stock market futures point to a 0,6% lower opening.
Buzzi. S&P raises long-term rating to BBB+ (from BBB); affirms stability of rating and short-term outlook.
Leonardo. It has signed a memorandum of understanding with UAE-based Edge Group to form a joint venture, according to Il Sole 24 Ore . It has been awarded the production of the rear section of the Airbus A220 fuselage, for which it already produces the horizontal and vertical stabilizer. Valerio Moro, the new CEO of Airbus Italy, said this, quoted by some newspapers.
Mayor: the accelerated offering of 4.981.118 shares closed at 10,25 euros, on Wednesday the stock closed at 11,27 euros.
Moncler. BNP Paribas has reduced its target price from 72 to 68 euros.
Pirelli. Italy is seeking clarity from Washington on whether the company could face restrictions on the US market because of its relationship with Chinese firm Sinochem, according to an exclusive ReutersThe Meloni government has postponed the decision on the 'golden power' regarding Sinochem until July 31, reports Bloomberg. Shareholders' meeting to approve the financial statements is held today. Pirelli holds a shareholders' meeting today to approve the 2024 financial statements
Unipol. Barclays raises target to 18 euros, remains Overweight.
Ps placed a covered bond maturing in 2031 for 750 million euros with requests for 1,5 billion euros.
Ifis-Illimity Bank, Andrea Pignataro joins the takeover bid which reaches 21,6%. Now the target is 66%
Tim. IThe first benefit of Poste Italiane's entry into the capital of the telecommunications giant is already worth over 1,5 billion and is linked to the stock market, but there will soon be others. This was underlined on June 11 by Tim's CEO, Peter Labriola, recalling that since the news of the entry of the group led by Matteo Del Fante into Tim, to become the first shareholder with a 24,81% stake in the capital, the telecommunications company's stock has gone from 29 to 39 cents.
