Taurus still has a lot of energy to spend. This is the lesson coming from Wall Street which yesterday, driven by quarterly earnings in great dust (88% of companies beat the estimates), returned to grind increases in bursts while the positive outcome of the Treasury auctions demonstrates that the credibility of T-bond remains high. It is not easy to assess the extent to which so much optimism is founded that overturned the negative moods of the beginning of the week, except to acknowledge that, with bond yields having slipped to low levels (yesterday, however, they recovered) managers have no choice but to turn to the stock market. And so yesterday the race for the dollar continued pending the decisions of the ECB. Many observers are betting that Christine Lagarde will send out a strong signal today, in line with the new inflation guidance, by confirming the purchases of bonds beyond the next March deadline. Others bet that there will be no news. We certainly won't be talking about tightening.
AUSTRALIA ON THE RISE DESPITE THE LOCKDOWN
The optimism of the US markets was transmitted today to the Asian markets, orphans of Tokyo closed until Monday on the occasion of the inauguration of the Olympic Games. South Korea's KOSPI climbs 1,1%. In Australia, the ASX 200 is up 0,9%, the state of Queensland has closed the border with New South Wales to curb the spread of the COVID-19 epidemic that started in Sydney.
Hong Kong's Hang Seng index jumped 1,7%. China's Shanghai Composite is up 0,2% and the Shenzhen Component is up 0,18%. Evergrande shares fly (+11%): the real estate giant has announced an agreement with the authorities on debts.
BURRITOS AND COCA COLA HAVE PARTY, THE BOND GOES BACK
Last night Wall Street extended Tuesday's brilliant rise with a second session dedicated to purchases: Dow Jones +0,83%, S&P500 +0,82%, Nasdaq +0,92%.
Chipotle flies (+11,5%): the house of burritos has revised its estimates upwards. The accounts of Coca-Cola (+2%) and Verizon are excellent. Netflix suffers (-3,3%).
The return of the propensity for risk favored profit-taking on assets considered less risky and the flow of liquidity towards the riskier ones.
Yields on 10-year US Treasuries edged up towards 1,30% from Tuesday's low to 1,14%, the lowest level since February.
Gold is in slight losses and fluctuates around 1.800 dollars an ounce.
The Euro-Dollar cross moves little, it is at its lowest since April at 1,178 pending the ECB meeting.
MUSK GIVES A NEW BOOST TO CRYPTOCURRENCIES
The optimism also caused cryptocurrencies to rebound sharply. Bitcoin is trading above the $32.000 mark after leading figures in the finance world including Elon Musk, Jack Dorsey and Ark Investment Management CEO Cathie Wood discussed its outlook at the B Word conference.
Oil fell slightly at the start of the session, from +5% yesterday, despite an increase in US crude inventories. Brent trades at 71,94 dollars.
EUROPEAN EXCHANGES CANCEL BLACK MONDAY
Futures on European stock exchanges are set towards a positive start, having completed one of the best sessions of 2021 yesterday, recovering much of the ground lost in Monday's disastrous session.
It's not that Covid -19 is less scary. Starting today, anyone who wants to enter a museum, cinema or swimming pool in France will be denied access in the absence of a health pass, the document proving vaccination against Covid-19 or the negativity to the disease ascertained with a recently performed test. The health pass will also be necessary from the beginning of August to enter restaurants or bars, for long-distance trains and for travel by plane.
THE ECB TODAY: THERE IS MARGIN FOR NEW STIMULI
Against this backdrop, expectations are rising for today's ECB meeting, the first after the institution corrected its inflation target to 2% from the previous one "below but close to 2%" and accepted that the rate inflation could temporarily deviate above or below that threshold, far from the Frankfurt estimates (inflation at 1,4% in 2023).
BUSINESS PLACE +2,36%, ONLY MADRID DOES BETTER
Piazza Affari (+2,36%) resumes its march towards the 25 mark, the hitherto insurmountable wall. The day ends at 24.675 points.
Madrid (+2,54%) is the most effervescent market thanks to the boost of bank stocks. Amsterdam +1,62%, thanks to Asml, Zurich +0,67%.
Money also on the other markets: Frankfurt recorded an increase of 1,33%.
London is revved up (+1,76%), and purchases are plentiful in Paris, which boasts an increase of 1,84%.
The tourism sector restarts: Accor +3%. Air France also rose (+3%). Sodexo +5,23% after Jefferies buy promotion.
BTP, YIELDS BELOW 0,70%
Italian bonds on parity in the final in a cautious market that is recovering after the strong selling on Monday. The yield of the ten-year BTP is stable at 0,69%. The yield differential between Italy and Germany on the same stretch is 109 basis points (from 110).
"The BTPs could receive further support if the president Christine Lagarde were to underline, as we expect, that the accommodative monetary policy will continue", comments a note from Unicredit.
GERMANY, NEGATIVE RATES EVEN FOR 30 YEARS
Germany has awarded 1,23 billion euros in the auction in the reopening of the 30-year bond with rates falling to -0,03% from 0,31%, and Portugal one billion in annual bonds, also in this case with yields down.
IN THE BUSINESS AREA SEVEN BLUE CHIPS OVER +3%, INDUSTRY RUNS
All the 40 blue chips of the FTSEMIB are up. Seven of them recorded gains of more than +3% in their best session in the last 4 months.
Stellantis accelerates (+3,6%). Carlos Tavares revealed that the holding company is ahead of its time to achieve the level of cost savings from the merger with Peugeot even if the global shortage of semiconductors that is forcing the automakers to slow down production, will in all likelihood continue into next year .
The other industrialists are running: Leonardo +3,76%, Pirelli +3,58%, Cnh Industrial +2,77%.
DIVIDENDS AND BUY BACK NIGHT, BANKS RECOVERY. MPS ON SHIELDS
Well bought the banks awaiting the decision, scheduled for Friday. the lifting of the limit imposed on bank dividend payments and share buybacks on next Friday. The Bigs are advancing: Unicredit +3,6%, Intesa Sanpaolo +2,3%. Positive Banco Bpm (+2,5%) and, above all, Mps (+6%): by the first week of August, the Treasury should submit a definitive proposal for the privatization project to potential counterparties. Reuters, citing sources close to the dossier, claims that the ministry is studying solutions to meet the conditions set by Unicredit for a possible acquisition
Only Bper is down. The bank has reached a preliminary agreement with the MPS Foundation to close the disputes relating to the claims for compensation for 3,8 billion against the payment of 150 million euros and commitments on the enhancement of the bank's artistic heritage.
CALTAGIRONE EFFECT ON MEDIOBANCA
Mediobanca in the spotlight (+3,2%). Francesco Gaetano Caltagirone bought, reaching 2,9% from the previous 1%. But the position can reach 5% if purchase options are included. Leonardo Del Vecchio and Caltagirone, together, have almost a quarter of the capital of the institute, a shareholder of 12,3% of Generali (+ 2,1%).
Unipol is also in turmoil (+4%), the best performance of the day.
STM SUPERSTAR IN THE TRAIL OF ASML
Very strong STM (+3,8%) in the wake of the performance of Asml (+3%), one of the main suppliers of semiconductor companies, which improved its guidance on 2021 revenues thanks to the jump in orders. Asml's improving estimates “make it clear that the bottleneck in the supply chain could be reduced in the short term.
MAIRE BOUNCES, MEDIASET FLY
Outside the main basket, Maire Tecnimont rears its head, +4,7%, after six sessions down.
Money on Do Value (+5%) after the National Bank of Greece said it continues to deal exclusively with a consortium made up of the company and Bain Capital and Fortress for the sale of NPLs.
A2A +1,4%. The multi-utility has entrusted a mandate to Rothschild to study a possible valorisation of the gas distribution assets, managed by Unareti, while maintaining
The control those that refer to Milan and Brescia.
Strong rebound for Mediaset (+5,3%) after the recent detachment of the extraordinary dividend. On the stock, Berenberg raised its target price to 3,10 euros from the previous 3 euros.
Avio +1,01% after signing a 118,8 million euro contract which ensures the evolution of the Vega launcher beyond 2025.
AIM, TODAY THE INCREASE OF ULISSE BIOMED HAS STARTED
The placement of the shares of Ulisse BioMed, a biotech company operating in the healthcare sector and in particular in diagnostics and theranostics (the integration of a diagnostic method with a therapeutic intervention), kicks off today at Aim.
