Today's Stock Exchanges, July 14th. Cautious rise in markets, US quarterly reports are off to a good start with the banks
Global shares headed for the best week since November, still driven by the drop in US inflation which eases pressure from the Fed. But now the test of US quarterly earnings begins, starting with US banks. FactSet analysts expect a drop in profits of around 7% overall for the S&P500, for financial institutions there is yes the exit from the quarter of the collapses but also the curiosity to understand how many provisions will be made on the loans that make them suffer more. However, the first steps are positive: Wells Fargo saw net income jump 57% in the second quarter, buoyed by rising interest rates and JPMorgan it scored a +67% due to margins but also to the positive legacy of the acquisition of First Republic. Finally, the net profit of citigroup (-36%) which still beat analysts' estimates. Weak closure, in the morning, for Tokyo while in the speeches of analysts the need for more fiscal stimulus from the Beijing government remains high: concrete moves in this direction, according to David Chao of Invesco, could make much of the pessimism that affected Chinese stocks.
Milan, black jersey, lost 0.39%
The European stock exchanges take a breather and they close mixed, pending further developments on the central bank front. Milan, the black jersey, lost 0.39%.
Also negative were Frankfurt, which lost 0.21%, and London, which lost 0.07%. Positive for Paris, which finished the session up 0.06%
Setback for Piazza Affari
Negative closing session for the stock market, with the Ftse Mib index dropping 0.39% to 28,663 points. Piazza Affari suffers a setback that comes after five consecutive increases, with profit taking to monetize the good gains achieved not only in the last week but throughout the first part of the year. The Milan stock market today did worse than the other European stock exchanges, which moved in no particular order, not even finding support in the good performance of Wall Street and in macro data such as consumer confidence from the University of Michigan, which rose again in July . In the basket of the most capitalized stocks, some energy companies fell, with falls for Enel (-1.45%), Eni (-1.42%), A2A (-1.18%). Among the banks down Intesa and Unicredit, Bpm loses 2.155, Monte Paschi on +1.72%. Among the financials, Fineco also rises (+1.49%), while insurance companies hold. On the rest of the list, Ferrari gains 1.42% after the positive conclusion of the repurchase of the bonds.
Waiting for last July and the fed and ecb moves
The countdown has started for the last week of July, when it's there federal reservebe there European central bank they will announce the monetary policy moves. Both central institutions should raise the cost of money, but this could be the last restrictive move, if the macro data confirm slowing inflation. Especially in the states, the consumer price index recorded a sharp deceleration, reaching an annual variation of 3% in June. Meanwhile, overseas, the quarterly season has begun with wells fargo and jp morgan's accounts on the rise, those of citi down but higher than expected. Milan filed by 0.39%, while the spread reached 169 points (168 on the eve) and the yield on ten-year BTPs at 4.16% (from 4.27%). Piazza Affari was affected by the weakness of utilities, with Enel down 1.45% and a2a down 1.18%. Oil shares also lost share: eni recorded a decline of 1.4%, saipem of 1.7% and tenaris of 0.4%. The banks reversed course towards the end, with the exception of mps which closed up by 1.7%. St trimmed gains for the day to 0.38%.
EU stock exchanges moved little
The main European stock exchanges confirmed little movement in the wake of the start of US trading (Dow Jones +0.48%, Nasdaq +0.37%) on the first quarterly day of the season. The best is London (+0.48%), followed by Paris (+0.31%), Madrid (+0.13%) and Milan (+0.07%), while Frankfurt leads (-0.08% ). The differential between German 10-year BTPs and Bunds rose to 166.7 points, with the Italian annual yield up by 2 points to 4.15%. and the German one by 1.2 points to 2.48%.
The trust of US families at the top since 2021
US consumer confidence, tracked by the University of Michigan, rose for a second month to 72.6 in July, its highest level since September 2021 and well above forecasts of 65.5, according to estimates foreplay.
Wall Street starts up
Rising start for Wall Street supported by the good quarterly results of Wells Fargo and JP Morgan. After the first trades, the Dow Jones index rose by 0.46% to 34,552 points, the S&P 500 by 0.21% to 4,519 and the Nasdaq by 0.27% to 14,179.
Crypto in the Spotlight: At Year Highs Thanks to Legal Wins
Cryptocurrencies at year-high after string of legal and regulatory victories and in the wake of some investments that indicate a change of pace in the market towards digital currencies. Bitcoin (+2% to $31,180) reached $31,818, the highest since June 2022, with an increase of 90% so far in 2023 and 30% this month alone. Ether (+6% to $1,996) is experiencing its best session since March, while Ripple has come to gain 73% after a US court ruled that it can legitimately be sold on public platforms for trading cryptocurrencies. This triggered the rally of smaller cryptocurrencies, the so-called "altcoins", such as Solana, Matic and Stellar up between 15% and 50%. Coinbase, the platform on which digital currencies are traded, is also up 24% and at a one-year high. According to traders, liquidity has so far been low on 'altcoins', but there is steady improvement compared to Bitcoin and Ether. "The regulatory environment is changing and, based on what we're seeing, it's changing for the better," Astronaut Capital experts said.
From CDP one billion to Intesa Sanpaolo for SMEs
Promote access to credit for smaller companies to help them implement their projects, supporting their growth and competitiveness. These are the objectives of the one billion euro loan that Cassa Depositi e Prestiti granted to Intesa Sanpaolo and which is part of the broader collaboration between the two institutions, aimed at promoting joint initiatives for Italian companies. In detail, the resources will be used entirely by Intesa Sanpaolo to disburse new loans of up to 25 million euro, with a duration of up to 18 years, to Italian SMEs and Mid-Caps. The resources will be dedicated to investments to be made or in progress on the national territory, to expenses for tangible or intangible fixed assets and to working capital needs.
Istat slows down Italian foreign trade in May
Exports and imports slow down in May. In particular, reports Istat, exports show a 0.3% economic decline, while imports show a contraction of 3%. The decrease in exports on a monthly basis, explains the statistical institute, is due to the contraction in sales to the EU area (-1.7%), while exports to non-EU areas are increasing (+1 ,2%). In the March-May 2023 quarter, compared to the previous one, exports decreased by 3.3%, imports by 5.9%.
Milan weak with the EU stock exchanges
The Milan Stock Exchange (-0.06%) continues weak, in line with the other European lists. In Piazza Affari MPS shines (+2%), Fineco also does well (+1.3%). The spread between the BTP and the Bund continues at 165 points, with the yield on the Italian 10-year bond at 4.15%. Tim is also advancing in the main list (+0.8%), with the Netco 'construction site' open and work still in progress on the debt. Among the banks, Bper (+0.7%), Unicredit and Intesa (+0.2%) are up, while Banco Bpm is weak (-0.2%). Enel is down (-1.3%), while the company continues with the disposals. A2a (-0.9%), Hera (-0.5%) and Erg (-0.2%) also fell. Energy contrasted with Saipem gaining 0.1%, while Eni (-0.7%) and Tenaris (-0.5%) fell.
Nokia cuts estimates, inflation and rates weigh
Nokia cuts its estimates for 2023. The company forecasts net sales between €23.2-24.6 billion compared to the previous forecast of €24.6-26.2 billion. Operating margin estimates were also reduced to 11.5%-13% from 11.5%-14%. The weakening of demand in the second half of the year is due both to the "macroeconomic" context and to customers' inventory management. Customers' spending plans are increasingly influenced by high inflation and rising interest rates, while some projects are postponed to 2024, especially in North America," explains the company. Preliminary results for the second quarter show net sales of approximately €5.7 billion and a comparable operating margin of 11%.
Rising opening for gas in Amsterdam
Gas futures open higher at TTF hub in Amsterdam. The contract for August rose by 1.872% to 27.105 euros per megawatt hour.
Weak closing for the Tokyo Stock Exchange
The Tokyo Stock Exchange closes the last session of the week under the banner of caution, despite the rise in the US stock indexes, weighed down by the revaluation of the yen which affects the export sector. The reference index Nikkei marks a slightly negative change of 0.09% to 32,391.29. On the foreign exchange market, the gradual recovery of the Japanese currency continues, reaching a two-month high against the dollar at 137.80 and against the euro at 154.60.
