The two-day rally that has spread across global stocks is already over. Today is negative mood returned after Trump's new trade measures, this time targeting the Nvidia chip exports towards China, as investors struggle to take long-term positions due to the unpredictability of announcements from Washington. Chinese technology companies led all of Asia lower, while Nvidia, in after-hours trading, showed a sharp decline. U.S. and European stock index futures also fell, while their reached a new record. The dollar pared some of its gains from Tuesday, while the Swiss Franc and the Euro led the gains against most currencies. Trump's double No to Europe also weighs on the markets: No to zero tariffs for industry and No to the condemnation of the latest Russian massacre in Ukraine.
Wall Street, Nvidia in sharp decline in post-trading
Caution prevailed at the close on Wall Street, with the Dow Jones closing the session with a slight decline of 0,38%, while the S&P-500 remained around the parity line, closing the day at 5.397 points. The Nasdaq 100 (+0,18%) was directionless; as was the S&P 100 (-0,16%).
In trading after the market closes, Nvidia has extended its drop to over 6% after announcing that the US government will begin requiring a license to export the company's H2O chips to China, an escalation of restrictions that the company has publicly opposed; noting that the move would cost 5,5 billion dollars.
Investors will also focus on data on retail sales in the United States and on the speech of the chairman of the Federal Reserve, Jerome Powell later today. Retail sales are likely to have risen 1,3% in March, though largely because consumers rushed to buy before the tariffs went into effect. On the agenda are quarterly of Travelers, US Bancorp and Abbott. There Bank of Canada will announce its monetary policy today: analysts estimate only a 40% chance of easing ahead of the general election due later this month.
Europe in the spotlight
I European financial markets are performing better than Americans, according to Bloomberg: the euro is at a three-year high and German government bonds are far outperforming Treasuries. And while European stocks have been hit by the trade war, they are proving much more resilient than the American ones. European stocks are attracting investors fleeing the volatility that has roiled U.S. markets, he says. BloombergThe US President's intermittent tariffs and planned fiscal policy have forced investors to wonder whether the treasury bonds and dollar will continue to be the safe haven they have been for decades. All this suggests that the era in which America, at the centre of global financial markets and trade, absorbed trillions of dollars from the rest of the world is over. Investors are now looking for alternatives to invest their money in, in open opposition to Trump's policies and unpredictable governing style. There is also a growing awareness, based on the EU's cohesive response to the pandemic in 2020, that theUnion is stronger than everSays Bloomberg.
The S&P 500 is down 7,9% this year, including dividends, compared with a 10% return in dollar terms for the Stoxx Europe 600. Yet, judging by price-earnings ratios, European stocks still look like a bargain: They are nearly 30% cheaper than U.S. stocks, well above the 17% average discount seen a couple of decades ago. Amundi SA, Europe’s largest asset manager, is among those favoring European stocks, with a preference for defensive, quality and value names. The euro dollar is almost unchanged today at 1,135, just below three-year highs. The verdict of the ECB on the agenda for April 17, which has more room to maneuver than the Fed.
The Italian Prime Minister Giorgia Meloni will meet US President Donald Trump at the White House today, in agreement with the European Union, with the aim of proposing the mutual elimination of most industrial duties between the United States and the European Union, effectively creating a free trade area. Among the goals that his entourage considers most achievable is the possibility of convincing Trump to accept a US-EU summit, allowing member states to discuss trade and defense, which would give Trump the opportunity to speak for the first time with European Commission President Ursula von der Leyen.
Meanwhile, the EU trade chief, Maros Sefcovic , returned from Washington with little clarity on the US position after meeting with his American counterparts, underscoring the challenge facing Meloni.
In Asia, tech leads the decline. China's GDP up 5,4%
President Donald Trump continues to push for exercising the maximum pressure on Beijing, which was left out of the shock rollback of its “reciprocal” tariffs. It has now ordered an investigation into potential new tariffs on all U.S. imports of essential minerals, heavily biased towards China. On the positive side, this morning's data on Chinese GDP have surpassed those of 2018, with a solid growth of 5,4% in the first quarter. However, investors know that this growth is earlier to the US increasing tariffs on China, which reached a surprising 145%.
The news of the dark on Nvidia is making the rounds around the world and has also hit Asia, especially on technology companies. The MSCI index of Asia-Pacific shares outside Japan fell 1,3%, breaking a four-day positive streak. The index Hang Seng of Hong Kong recorded the worst performance in the region, with a decline ofl 2,3%, with the tech sector down -5%. Baidu, Alibaba and Tencent, major buyers of H20, lost between -2% and -5%. CSI 300 -0,8%.
Trump says the ball is in China's court for a trade deal, but Chinese president Xi Jinping, for his part, seems to be more focused on his visit to the Southeast Asia. Trump says the two have a great relationship, but Xi shows no signs of slowing down. All this uncertainty has fueled a new rally Of their, with bullion up 1,3% to another all-time high of $3.275 an ounce. Petroleum -1%. Bitcoin -1,2% to $83.200.
European stocks seen opening lower. At Piazza Affari to watch Stellantis and Unicredit
European stock markets are seen opening lower based on indications offered by the EuroStoxx50 index futures at -1,3%, while Nasdaq futures anticipate a start with a decline of -2,3% due to negative news coming from Nvidia.
Bpm bank will vote in favor of the capital increase of MPS, preparatory to the offer of shares on Mediobanca. The asset management company also Anima will vote in favor of Monte's capital increase to service the takeover bid for Mediobanca. Anima holds approximately 4% of the Sienese bank's capital.
Eni Morgan Stanley lowers target from 15 to 13,3 euros.
Ferragamo Stifel lowers target from 7 to 6 euros.
Saipem Morgan Stanley lowers target from 3,3 to 3,2 euros.
Stellantis The political choices of the United States and Europe, with import duties on one side and CO2 emission regulations on the other, put the automotive industry under "extreme pressure", said Stellantis chairman John Elkann.
Unicredit Among the government's requirements for the green light to the offer on Banco Bpm through the special powers of the golden power is the exit from Russia as soon as possible by the bank led by Andrea Orcel. This is what is written by Messenger according to which the verdict of Palazzo Chigi on the takeover bid could arrive as early as next Friday. The other two commitments requested concern the maintenance of a stable employment/deposit ratio and the levels of financing relating to the project financing practiced by Banco Bpm, the newspaper adds. Also La Repubblica indicates Friday as the date for the government's decision, but does not exclude that it could be postponed until April 22.
Terna. S&P announced that it has positively revised Terna's long-term rating, raising it from 'BBB+' to 'A-', one notch above that of the Italian Republic, with a stable outlook. The short-term rating was affirmed at 'A-2'.
Shareholders' meetings of Banca Mediolanum, Campari, Ferrari, Iveco, Prysmian, Salvatore Ferragamo are held. Moncler and Brunello Cucinelli also meet with the board of directors on the first quarter of 2025 accounts.
