"Sooner or later, rates will have to go up to avoid overheating the economy." Sensible, almost obvious words, but if they are pronounced by Janet Yellen, the reference figure for President Biden's economic policy, she is not surprised that the stock markets are shaking. Starting with the Nasdaq (-1,88%), continuing with Europe, the most fragile area of the global economy, where the recovery is just beginning. This morning it seems that the storm is already behind us, also because the head of the US Treasury has corrected the shot. But one wonders whether Yellen, capable of captivating the markets for years with her dovish reassurances, has made a communication error or, more likely, has wanted to test the moods of the market, too euphoric on the eve of a delicate season, under the pressure of tense prices and galloping consumption. However, the former Fed chairman took advantage of a meeting last night with the Wall Street Journal to rectify.
ASIA QUIET, US FUTURE RECOVERS
Asia absorbs the wave of US declines this morning without major worries. Help the vacation of the main price lists, from Tokyo to Shanghai. Hong Kong's Hang Seng is at par, Sydney's benchmark stock market index up 0,5%. BSE Sensex of Mumbai +0,5%.
Wall Street futures, up slightly this morning, signal the return of tensions. Yesterday the S&P closed down -0,67%. Dow Jones just above parity: +0,06%.
BEAT ON APPLE, PFIZER DOUBLES VACCINE REVENUES
The big names paid the highest price, starting with Apple, down by 3,54%, and the chips (the semiconductor index -1,3%).
Meanwhile, Pfizer's Covid-related revenues are doubling: the US pharmaceutical company now expects vaccine-related sales of $ 26 billion in 2021, up from its previous forecast, which was about $ 15 billion.
The bonds are calm, with the 1,59-year Treasury Note yielding XNUMX%.
OIL, COPPER AND CORN: PRICES GO UP
The rush of raw materials continues. Oil rose to 66,2 dollars a barrel: +0,7% compared to yesterday and +36% since the beginning of the year. Copper at 9.970 dollars (+1,4% compared to yesterday, +28% since the beginning of the year). Corn is up 54% year-to-date. Soybeans are up 3% (+20% since the beginning of the year).
FLY THE DOGECOIN: +1.000% FROM FEBRUARY
There is euphoria on the most bizarre and controversial cryptocurrency, the dogecoin, with yesterday's 39% rise, the value rises to $0,55: in the last three months the gain has been +1000%. Cryptocurrency, born as a joke, was adopted by Elon Musk.
AT 13.39 PM HELL BREAKS BREAKING IN NEW YORK: EUROPE IN RED
At 13.39 a massive sale in New York of S&P 500 futures (more than 8.000 contracts in less than a minute, according to Bloomberg, equal to a value of 1.6-1.7 billion dollars) produced a mini-crash of about twenty points on the index. The news ignited the European stock exchanges which had been calm and tendentially positive until then. The sentiment on the markets across Europe gradually cooled down to reach its lowest point in the afternoon for no precise reason. At least until 17 pm, when some statements taken from a speech by Yellen arrived. The Treasury secretary said in a pre-recorded speech that rates may have to go up a bit to avoid overheating the economy caused by fiscal spending. Just a wake-up call or confirmation that the old saying (“sell in May”) still holds true? For now, it's not the interest rates that are in the crosshairs, but the quotations of the securities growth. And the course of the currency markets also reversed: the dollar climbed back to 1,2061 in the face of the sudden landslide in risk appetite.
MILAN -1,8%: INFINEON (-6%) DRAGS FRANKFURT DOWN
The Ftse Mib index, which had floated in the morning, closed down by 1,81% and slipped below 24 points (23.977): for the umpteenth time the assault on the 25 mark has vanished.
Two-faced day also in the rest of Europe. After a quiet and basically positive morning, the climate on the continental markets gradually cooled down to reach its lowest point in the afternoon coinciding with the first Nasdaq prices.
Frankfurt is the worst place (-2,33%), weighted by InfIneon. The European chip leader lost 6% on the day of publication of the data for the quarter: revenues of 2,70 billion euros, net profit of 207 million euros. Two months ago, the company said sales would be between $2,5 and $2,8 billion. Together with the data for the quarter, an upward adjustment of the targets for the year has also arrived.
The red wave overwhelms Amsterdam (-2,13%). Fractional decrease instead in Paris (-0,89%). Dassault Aviation jumped 6,7% after Egypt's defense minister said it had signed a contract with France for the purchase of 30 Rafale fighters.
Madrid -0,62%, London -0,59%, which reopened its doors today after the long weekend.
FALLS IN THE ASA (-16%), HYDROGEN LEADER
Norwegian Nel Asa, a leading company in solutions for the production, storage and distribution of hydrogen from renewable energy sources fell 16% on the Oslo stock exchange after disappointing analysts' expectations with its quarterly accounts.
THE SPREAD CLOSES AT 106. THE BTPS ARE QUIET
Quiet day for the bond market on both sides of the Atlantic: 1,59-year Treasury Notes 0,24%, 0,81-year German Bund -XNUMX%, Btp in the final at XNUMX%.
The spread between 10-year BTPs and Bunds of the same duration rose to 106 basis points (+1,72%).
FERRARI KAPUT (-8%), 2022 GOALS POSTED BY ONE YEAR
The difficulties of the Italian stock market were characterized in particular by the setback of Ferrari, which dropped 8% despite "promising" results for the quarter (profit of 206 million +24%, net revenues of 1.011 million , up 8,5%), as John Elkann himself pointed out. But the Prancing Horse, due to the pandemic, has postponed the financial targets already set for 2022 by a year. "Looking to the future - declared the president and ad interim - we expect that the prudential approach adopted in 2020 and which will 2021 in adjusting our investments in response to the emergency from Covid-19 will postpone the achievement of our 2022 guidance by one year”.
The decline involved the rest of the team: Cnh -3,01%; Exor -2,81%; Stellantis -0,961% awaiting the quarterly.
ROME IN THE SKY (+21%): MOURINHO IS WORTH MORE THAN A CUP
Even a "light" title deserves a headline in huge letters: AS Roma +21,02%, suspended several times during the day, on the wave of thesurprise arrival on José Mourinho's yellow and red bench.
BRINDA CAMPARI, IN RED STM
Among the blue chips, few stocks toast: among these Campari, +2,57% after releasing quarterly results above expectations, with adjusted group profit before tax of 64,1 million, up by 84,7 .XNUMX%.
Pay for the black day of Stm technology (-2%). In an interview with Financial Times, the CEO Jean Marc Chery launches combative resolutions: “Our customers – he says in summary – from now on they will no longer be able to buy chips at the last moment or cancel reservations. We producers will dictate the conditions”.
AFTER THE PEACE, MEDIASET AIMS FOR MERGER WITH MADRID
It deflates during the session Mediaset (+1,3%); in the aftermath of peace with Vivendi, Equita has raised its target price to 2,85 euros: yesterday evening the two companies issued a joint press release which speaks of the end of the disputes. Vivendi will support the transfer of the registered office to the Netherlands, where 50,01% is enough to proceed with the extraordinary operations, while Fininvest will propose the distribution to all shareholders of an extraordinary dividend of 0,30 euro per share. The holding company of the Berlusconi family will immediately buy 5% from the French and will reach 51%. Over the next five years, Vivendi will continue to sell fixed shares: Fininvest has a call option on these shares. In Madrid, the shares of Mediaset España rose by 2,5%. The market is betting that with the exit of the French, a merger could be proposed again, perhaps with an exchange of shares, between the future Mfe based in the Netherlands and the company listed in Madrid.
BANKS, ADVANCE MPS ONLY. TODAY THE ACCOUNTS OF INTESA
In the afternoon, bank stocks and those associated with managed savings were down sharply. Fineco leaves 2,66% on the street, Blackrock has rounded up its stake to 10%. Poste Italiane 2,53%. Mediobanca also down (-2,13%). Heavy sales on Nexi (-4,16%).
An exception is Banca Mps (+2,59%), in the front row in the event of marriage, to receive state subsidies, potentially equal to 3,8 billion euros.
SAIPEM GOES BACK, JONIX MAKES DEBUT AT AIM
The recovery of the economy is reflected in the estimates of oil and consequently of energy stocks: Saipem +1,6%, Tenaris +0,81%: Kepler Cheuvreux today confirmed the hold recommendation and the target price of 9 euros on the stock. Flat Eni. Jonix made a good debut on Aim (+12,25%), a SME that produces and distributes solutions for purifying the air.
