Low key start of the markets. Tokyo and Shanghai are closed for public holidays, as is London, closed for the Bank Holiday. The few open price lists are decreasing. The pandemic and geopolitics weigh on the Asia Pacific index (-0,7%). In Seoul, the end of the ban on short selling in force for two years is viewed with some apprehension. Taiwan is down (-1,3%), the island of chips, the raw material that industry across the planet is hungry for on the eve of recovery. Among the main victims the car industry: Autonews writes this morning that Stellantis will be forced to postpone the launch of the new Jeeps scheduled for July in the USA.
IN MUMBAI (-1%) IN TROUBLE RELIANCE (-3%)
The most serious crisis is taking place in India, where a chilling record was reached yesterday: 400 new infections. The inability to cope with the epidemic is reflected in the Mumbai Stock Exchange, down 1%, starting with the blue chips: the conglomerate Reliance drops 3% after linking the bad quarter to the trend of the epidemic. The BJP, Prime Minister Modi's party, suffered a crushing defeat in West Bengal, despite the efforts made by the leader, who has held twenty rallies in recent weeks.
CAUTION SIGNS FROM THE FED. YELLEN INSISTS ON TAXES
The opening of western financial markets kicks off on the wave of Wall Street's euphoria: in April the S&P 500 index gained just over 5%, the best month since November. This morning the future marks +0,3%. But, in a week dominated by job data, economic statistics and earnings rain, there are those who suggest taking your foot off the accelerator.
Dallas Fed Chairman Robert Kaplan said it may be time for the central bank to cut back on market bond purchases. Warren Buffett, who at Berkshire Hathaway's meeting on Saturday celebrated profits in gold (11,7 billion, a clear improvement) warned against the rise of inflation. In his letter to shareholders, the wise man from Omaha said that everyone is raising prices, "and we too are able to raise them", which is why, following the very strong economic restart underway, the surge in inflation could hurt . Meanwhile, Treasury Secretary Janet Yellen, the architect of the Biden administration's spending plan, yesterday urged the White House to speed up the tax increase to prevent the creation of excessive debt.
APOLLO BUY YAHOO AND AOL FROM VERIZON WITH DISCOUNT
Against this backdrop, the data on the labor market for April due out next Friday will be even more important: in March employment had risen by 916 units, the rally should have been confirmed in April. A first signal will arrive this afternoon with the ISM data and, above all, with the words of the president of Jerome Powell who will speak in the evening. Meanwhile, the quarterly season is about to close triumphantly: the results of 87% of the stocks listed on the S&P 500 will be known at the end of the week. To follow the accounts of Big Pharma starting with Pfizer.
The 1,63-year Treasury Notes traded at XNUMX% this morning.
This morning the Financial Times reports that private equity fund Apollo is close to buying Verizon's media assets for what could be as much as $4,5 billion. For the phone company that sells it, this isn't a big deal: Yahoo! and AOL, later reorganized, were paid $9 billion.
THE EIB PLACES A DIGITAL BOND AT ETHEREUM
Gold is weak at 1.772 dollars an ounce. Among the cryptocurrencies, Ethereum flies: the European Investment Bank will launch a digital bond in the Ethereum blockchain this week.
TODAY THE PMI INDEXES FOR EUROPE
The situation is different in the Eurozone: the economy, in the red, does not benefit from the extraordinary injection of liquidity which supports the US economy, well illustrated by the gains on Wall Street's stock markets in a golden month. This morning the PMI indices will give a measure of the extent of the recovery of the Old Continent's economy. Also important are the data on the trend of retail sales in Germany.
Also worth following is the speech by Andrea Enria, head of EU Banking Supervision, from whom indications are awaited on the tightening of the balance sheets of credit institutions, whose quotations on the Stock Exchange have returned to their highest levels for 13 months.
THE BANK OF ENGLAND TOWARDS CUTTING PURCHASES
The meeting of the Bank of England board next Thursday is of particular importance. The strong rise of the pound against the dollar (+2%) and against the euro (+3% since the beginning of the year) following the successes in the fight against the pandemic, could prompt the Central Bank to cut interventions first to support the bond market.
TODAY'S MEETING OF TENARIS, RAIN OF COUPONS FOR THE SMALLS
The Italian finance calendar includes the meeting of Tenaris, the blue chip that performed best in the first four months of 2021.
Numerous dividends were paid today among the Mid-Caps (Alerion Cleanpower 0,28 euro), in the Star segment (among others Ascopiave 0,16 euro, Italmobiliare 0,65 euro and Reply 0,56 euro) as well as in Aim.
