The US stock markets gallop towards new records, supported by better-than-expected quarterly results and by the expectation of an even softer monetary policy, as requested by Donald Trump: more than half of the operators expect a drop in rates in 2019. This confirms the forecasts by Larry Fink, the boss of BlackRock: the rise is destined to continue under the impetus of purchases by latecomers, hitherto held back by the risk of recession, a less frightening danger, as confirmed by the evolution of the yield curve.
The boom on Wall Street, however, is struggling for now to infect Asian stock markets, pending the turnaround in the negotiations on tariffs. But optimism about the fate of emerging market equities is growing. In short, the only thing missing from the party is the Old Continent, also held back by the prospect of a political crisis in Italy, the last thing the country needs.
TOKYO SETS PACE, SAMSUNG (-2,1%) HOLDS BACK IN SEUL
Tokyo's rise stopped overnight. The Nikkei index, which had opened a rise of 0,4%, is starting to close at -0,1%. Masayoshi Son, the pyrotechnic tycoon of Softbank, has suffered a loss of $130 million in Bitcoin.
The decline of the Kospi of Seoul (-1,2%) was more marked. The postponement of the presentation of Samsung's foldable smartphone weighs heavily (-2,1%).
Hong Kong's Hang Seng fell by 0,8%, while the CSI 300 of the Shanghai and Shenzhen stock exchanges experienced a similar negative change. Tonight the Central Bank made available to lenders a subsidized loan of 267 billion yuan, about 40 billion dollars.
Sidney, on the other hand, rises (+0,9%): the data on inflation, weaker than expected, paves the way for a reduction in rates.
NASDAQ AND S&P 500 RECORDS, TWITTER +17%
Last night's closure of the US markets was pyrotechnic, both the Nasdaq (+1,32% at 8.120,82 points) and the S&P 500 index (+0,88% at 2,933,68) set new absolute records. Only the Dow Jones is missing, however up by 0,55%, weighed down by Boeing's difficulties.
Supporting the rally were better-than-expected corporate results across virtually all sectors. Among the social media, Twitter has taken off (+17,3%), driven by the increase in users. With the market closed, eBay released the results: revenues beat analysts' estimates, forecasts for the current quarter, both in terms of profits and revenues, beat expectations. Snap's revenues were also better than expected.
Coca-Cola up sharply (+1,7%) thanks to the success of Coca Zero. United Technologies +2,3%. Defense stocks such as Lockheed Martin (+5,7%) did well, but also those of toys: Hasbro +14,2% after the accounts.
THE BRENT STOP AT 74 DOLLARS
Finally, oil, pushed up by the US decision to tighten the links of the embargo on Iran by deleting exemptions from the blockade granted to eight countries, including Italy (which has not used it).
Brent is moving away from the highs. This morning it traded at 74,1 dollars a barrel, down 0,7%, after gaining almost 4% in the last two sessions.
Oil prices rose sharply yesterday also in Piazza Affari. Eni +2,37%, Tenaris +3,49%, Saipem +2,91% (at 4,8 euros). Equita Sim raised its target price from 5,3 to 5,4 euros, confirming the buy recommendation.
THE DOLLAR TAKES STRENGTH ABOVE 1,21
The euro feels the strength of the dollar. This morning the change is 1,121.
The push from Wall Street's quarterly reports in the afternoon gave a little verve to European stock markets, up until then supported only by the push from the energetic, in the absence of significant macro data. The detachment of the coupons, which accounted for half a point on the index, held back the lists, but, even more, the concern for the Italian accounts, which emerged yesterday with the confirmation that the public debt grew in 2018, in against the trend compared to the Eurozone average: to 132,2% from 131,4% in 2017, against a decrease to the average 85,1% in the Eurozone. A figure that may be taken for granted, but which yesterday prompted the president of the Eurogroup, the Portuguese Mario Centeno, to ask the country to implement its budget plans “credibly. The great challenge of the Italian economy is to grow – he added – it is a challenge on which we can never let our guard down, that's why there is concern ”.
MILAN -0,27%, NEW CTZ OFFERED TODAY
Piazza Affari accelerated downwards in the wake of the declines in the banking sector and then recovered towards the end and closed at -0,27%, at 21.896 points.
The other European lists were mixed: Frankfurt +0,12%; Paris +0,2%; Madrid -0,65%; London +0,8%.
The BTPs closed a session with modest trading in negative territory, awaiting the month-end auctions and the next S&P verdict scheduled for Friday.
At the end of the session, the yield differential between the 10-year BTP and the Bund closed at 264 basis points from 257 on Thursday after a peak of 267 points, the highest since the end of February.
In parallel, the 2,68-year rate closed at 2,65% from 2,70% at the last close after an intraday high of XNUMX%, the highest level since the beginning of March.
The month-end auctions will start today with the placement of the new Ctz and Btpei offered for a total of 3-3,5 billion euros.
At the close, the new June 2021 Ctz was trading at around 0,75%, up from the 0,288% of the end-March auction, when the bond maturing in November 2020 was offered. It is the highest since November 2018.
During the auction on Friday 26 April, the Treasury is offering 6 billion euros in the six-monthly Treasury.
The most important appointment will be with the medium-long term auctions on Tuesday 30th April, the details of which will be announced on Friday evening. According to Unicredit, the Treasury will offer the BTP in July 2024, the one in August 2029 and the CctEu in January 2025 for a total amount between 5,75 and 7 billion euros.
REVENUES AND PROFITS OF STM DOWN
Expected today the reaction of the markets to the Stm accounts, yesterday -3,43%, released during the night. In the first quarter of 2019, revenues fell to $2,08 billion (-6,7%). Gross profit was $818 million, a year-over-year decrease of 7,9%. Gross margin was 39,4%, down 50 basis points year over year. Net income and earnings per share after dilution decreased to $178 million and $0,20, respectively, compared to $239 million and $0,26 for the same quarter in 2018. The cash dividend, which will proposed to the meeting is $0,24 per ordinary share to be distributed in equal quarterly installments. Chairman Jean-Marc Chery expects revenue growth in the second quarter and full-year net revenues in the range of approximately $9,45 billion to $9,85 billion.
NO DAY FOR BANKS. UBS AND DB TOWARDS AN ALLIANCE
The bad day of the bankers weighed on Piazza Affari yesterday. The widening Btp-Bund spread did not help. Spotlight today in Europe on the data of Credit Suisse, followed by those of Ubs and Barclays on Thursday and those of Deutsche Bank and Rbs on Friday.
Meanwhile, the possibility of a sensational merger between the asset management activities of UBS (700 billion dollars in assets) and DB, a subsidiary of Deutsche Bank, is taking shape.
Sales involved Mps (-3,30%), Banco Bpm (-1,78%), but also Unicredit (-3,29%, held back by the coupon detachment). Better Understanding )-0,49%).
The worst title was Juventus (-5,5%).
7 COMPANIES GIVE DIVIDEND, REAL ESTATE LUMP
At Piazza Affari, seven blue-chip companies assigned their dividends: Fiat Chrysler, which closed at -4,46%, CNH Industrial -0,91%, Ferrari +0,32%. Finecobank -0,45%, Recordati (+1,27%) and Campari (+1,97%) complete the list.
Purchases on Piaggio after Thursday's drop. The shares remain around 2,6 euros, the target price of some analysts.
Ovs up sharply after the results released on Thursday and after Kepler raised the target to 2,5 euros. Jump in some real estate stocks in the afternoon. Aedes rose by over 23% followed by Restart, +13,17%, the company from which Aedes was demerged in December 2018. And
