Today’s Stock Exchanges, May 4th. ECB calls for another rate hike. The markets look to Lagarde’s indications
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MILAN – After the Fed, it’s up to the ECB. Yesterday the American Central Bank raised the cost of money by 25 basis points as expected, signaling that after the tenth tightening it could have reached the end of its run. Today it’s the turn of the ECB, which is likely to move by the same size after its preferred measure of inflation recorded its first decline in ten months. For economists, the rate on deposits will reach 3.25%, also because the latest credit report shows that the disbursement of loans in the Eurozone is slowing down and tightening. But unlike the Fed, the widespread belief is that there is still a long way to go. The hawks argue that core inflation at 5.6% is far from the 2% target. And that further steps are needed, starting with budgetary tightening. To handle there is the repayment of the Tltro loans maturing at the end of June and according to the analysts of Morgan Stanely a new program will be needed to shore up the funding of the institutions: SocGen goes further and says that it will be difficult for Italian banks to achieve the objectives of reimbursement.
The euro opens higher above $1.1
Opening up for the euro above 1.10 dollars. The single currency changes hands at 1.1081 dollars (+0.23%), while it is at parity with the yen at 149. The Japanese currency rises on the greenback, with the exchange rate at 135.45 (+0.17% ).
Generali, agreement to sell Generali Deutschland Pensionskasse
Generali has reached an agreement with Frankfurter Leben for the sale of Generali Deutschland Pensionskasse ag. As indicated in a note, the transaction is in line with the group’s “Lifetime partner 24: driving growth” strategic plan, which envisages improving the profile and profitability of the life business, continuing the process of optimizing existing portfolios to reduce capital absorption and improve the operating result. The transaction will increase the solvency ratio in Germany by approximately 10 pP and that of the group by 1 pP.
Futures up for Wall Street
On Wall Street, futures are trying to rebound and continue to rise after the Fed, in a widely expected move, raised (with a unanimous vote) for the tenth consecutive time in 14 months, by a quarter of a point, interest rates bringing them to 5-5.25%, the top for 16 years. Dow Jones futures rose 0.14%, S&P 500 futures rose 0.23%, while Nasdaq futures rose 0.46%.
Mixed Asian bags
Asian stock markets continue to rise with Tokyo closed for holidays. In Hong Kong, the Hang Seng index is up 1.1%, while the Kospi in Seoul is flat. In China, the Shanghai composite index rose by 0.79% while the Shenzhen composite index fell by 0.66%.
Poste Italiane, profit rises by 9%
Poste Italiane closed the first quarter of 2023 with “a solid financial performance, broadly in line with the achievement of the guidance for the year”. Net profit amounted to 540 million, an increase of 9.4% compared to the same period of the previous year. The operating result was 767 million “highlighting a strong growth of 11.2% – reads a note – thanks to the positive contribution of all businesses”. “Solid progression” for revenues “in an increase of 8.1% reaching 3 billion (3,044
million), supported by positive commercial trends”.
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