Today’s Stock Exchanges, May 10th. Eyes on US inflation. Schnabel (ECB) calls for more tightening to combat price increases
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MILAN – Eyes of the markets on US inflation, which is expected to remain at 5% in April with an acceleration to 0.4% per month. Important material for the decisions of the Fed, whose representative John Williams has opened to a pause in rate hikes, but if the data require it, the tightening will continue. Yesterday evening the hawkish words of Isabel Schnabel, a member of the Governing Council of the ECB, according to which the “impetus” of inflation in the Eurozone remains high and proceeding with increases of 25 basis points, the monetary policy of the Eurotower can reach a sufficiently restrictive level. In any case, he pointed to a Bloomberg, the rate cuts that the market discounts for the final part of the year are “highly unlikely”. The ghost of the US public debt ceiling remains in the background: little progress in Tuesday’s negotiations, President Biden and the leaders of Congress will talk again on Friday to avoid the first default with stars and stripes. The president said that he is “considering” the use of the 14th amendment to get around the stalemate: he says that the public debt of the United States “must not be questioned”.
Weak oil
Oil price down at the start of the day after the rises of the previous sessions which led it to earn more than 6%. Wti drops 0.69% to 73.20 dollars a barrel, while Brent drops 0.67% to 76.92 dollars.
Toyota closes the year with -14% profit
The Toyota group, the world’s leading automaker, closed the 2022/23 financial year with a profit of 2.451 billion yen, equal to 16.5 billion euros, down 14% compared to the previous year. However, this is a better figure than forecasts, which saw a profit of 2,361 billion. The decline is due to the soaring costs of raw materials. For 2023/2024, on the other hand, an increase in sales and a +5% of net profit are expected.
Stock markets, weak Asia awaiting US inflation
Asian stocks fell ahead of the end of the session, awaiting the US inflation data and after the news of the stalling of the negotiations on the debt ceiling in Washington. In Tokyo the Mikkei index is down 035%, in Hong Kong the Hang Seng index is down 0.7%, while in China the Shanghai Composite is down 0.58%.
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