A knockout blow, exceptional even in times of exceptional volatility. That's what he went through Target, the US large-scale retail giant, which yesterday it has lost a quarter of its value, ie 25 billion dollars, in the second worst session in its history since the great crash of October 1987. Yet the sales, judging by the quarterly, are not bad. But to sustain revenues, the company had to sacrifice profits ($2,19 per share against the expected $3,10), as happened to Wal-Mart (-11%) and the other Bigs.
The US markets have felt the pinch: inflation is now also biting consumption, the Fed can only try to put out the fire with squeezes. In short, the winds of recession are blowing from the USA, both towards Asia and towards Europe, grappling with a fiery geopolitical framework on the day in which Brussels launches the challenge of energy independence. Even the Old Continent will have to raise rates, but, at the same time, push on investments. Not easy. And speculation is preparing to strike.
The futures of the European stock exchanges signal a start in the red. Asian markets are also down. The CSI 300 index of the Shanghai and Shenzen stock exchanges is down by 0,3%. Yesterday Goldman Sachs cut its estimates for China's GDP in 2022 to +4%, from +4,5%. The revision comes two days after Citigroup's drop, from 5% to +4,2%.
Tokyo's Nikkei loses almost 2%. Japan's exports rose 12,5% in April, the consensus was +14%. Hong Kong's Hang Seng -2,2%. Kospi of Seoul -1,3%. Mumbai BSE Sensex -1,7%. Singapore's Ftse Straits Times -0,4%.
The latest disappointment for the US markets was achieved by Cisco overnight, -10% after the Stock Exchange after cutting its profit forecasts.
It was the last hit of a black session: Dow Jones -3,76%, S&P 500 -4,03%, Nasdaq -4,73%. All 11 sectors of the stock market close down. Several Bigs are in free fall: Amazon and Nvidia lose 7%, Apple 5,6%. The 2,90-year Treasury Note trades at 2%, +XNUMX basis points.
Euro-dollar at 1,05, up 0,3% after yesterday's -0,8%. Gold moved little, at 1.815 dollars. Bloomberg reports strange movements in Bank of England accounts, with sales at discounts of up to a dollar an ounce. A true golden mystery.
Oil climbs: Brent and WTI gain 1% after two straight down sessions.
ECB: energy and inflation accelerate rate hikes
“Western sanctions against Russia have already had a huge impact,” syllables Janet Yellen ahead of the G7 finance ministers meeting in Bonn. "Russia - says the US Treasury secretary - is experiencing a recession, high inflation, acute difficulties in its financial system and the inability to procure the materials and products it needs to support its war for the economy ”. It is in this climate that Europe is preparing to face the tug of war on energy with Moscow, which according to Putin risks being a "sort of suicide". But this is not the only trial by fire for the EU, grappling with the contagion risk of British inflation, now out of control. In this context, hawks and doves are approaching: Olli Rehn, governor of the Bank of Finland, has hoped that negative rates will end within days. But also the dove Pablo Hernandez de Cos, number one of the Spanish bank, has spoken out in favor of an increase in the third quarter.
Btp again above 3%, Bund at its highest since 2011
Against this backdrop, the 3-year rate rose briefly above 192% for the first time in a week. The spread on the ten-year Bund trades at 189 basis points from 190 at the start and from 2011 on the eve. The yield on the two-year Bund, particularly sensitive to rate hikes, reached its highest level since November 0,444 at XNUMX%.
Inflation, moreover, continues to run: in April it remained at record levels, at 7,4% on the year, driven by the surge in energy and food costs.
Milan -0,9%, Borsa Italiana makes Euronext rich
After floating around parity for the first part of the session, European stock exchanges all closed in the red, dragged down by the opening of Wall Street. Piazza Affari closed by 0,89% just over 24 thousand points (24.089), in line with London (-0,93%). Paris and Frankfurt are doing worse (-1,20%).
The exception is Madrid which closed substantially flat (-0,08%), after the tear of Siemens Gamesa Renewable Energy (+12,6%): the German group Siemens Energy has announced its intention to repurchase all the shares of its Spanish subsidiary , active in wind energy, in view of its delisting.
The Euronext stock flies (+3,85%) after the record accounts: turnover of 395 million euros as at 31 March, profits at 164 million (+50.3%). The integration with Borsa Italiana was a real deal.
Abn Amro lost 9,74% after warning investors of the possible financial impact of the war in Ukraine.
UniCredit +2,05%. Like the merger with Commerzbank
The index of Italian banks was positive on a day full of news. At the top of the list is Unicredit: +2,05% after a quiet start. The activism of Andrea Orcel who, before the outbreak of the war in Ukraine, had started talks with Commerzbank (+1,2%) for a possible merger is appreciated.
Mediobanca, armored by the ECB, returns to 12,7% in Generali
But Mediobanca is also holding the court (-2,42%) after the rumors about the no of the ECB to Leonardo Del Vecchio's request to increase up to 25%. The Consob bulletin shows that Piazzetta Cuccia has closed the securities loan on 4,42% of the capital of Generali (-0,55%) thus returning to hold 12,776% of the Trieste company. Mediobanca presented itself at the Leone meeting with 17,22% of the capital.
Iveco runs, the market believes in Snam/Terna
The positive forecasts for the sector that emerged from Daimler's quarterly report continue to push Iveco (+2,34%), the best stock of the day.
The ferment surrounding Snam (+1,26%) and Terna (+1,61%) continues: the market believes that this time the merger of the two public companies will take place.
The energy sector slips in the red in the final: Tenaris and Eni give up half a point.
Saras superstar, Saipem shoulder strap before grouping
Collapse of Saipem (-5,13%). The shareholders' meeting gave the board of directors the mandate for the 2 billion euro capital increase. The operation also envisages the grouping of ordinary shares and savings shares from Monday within the limit of one new ordinary share for every maximum 20 existing ordinary shares and one new savings share for every maximum 20 existing savings shares.
The exception is once again Saras (+6,36%), at its highest level for two years. Outside the main basket, Erg +2% on interest from foreign funds.
A day to forget for Amplifon (-5,13%) and for Nexi (-4,13%), which left the previous day's gains on the field.
