Listen to the audio version of the article
(Il Sole 24 Ore Radiocor) European stock markets rising slightly, on a day marked by the numerous quarterly reports on the calendar. Investors, meanwhile, continue to wonder about the moves of central banks and especially the US one, which is not clear whether it will proceed with two cuts or just one cut in the cost of money during the year. The FTSE MIB recorded an increase of just under one percentage point on the day in which numerous companies published their accounts for the January-March period, including Banco Bpm, Campari, Ferrari, Fineco, MPS Bank Infineon, Leonardo e UniCredit . The spread is stable at 133 points.
Unicredit takes action in Piazza Affari, with eyes also on MPS
Unicredit’s shares shot up on Piazza Affari, driven by first-quarter accounts that were higher than expected. The bank recorded a net profit of 2.6 billion, up 23.9% compared to the same period of 2023 and higher than the 2.1 billion expected by analysts’ consensus. Furthermore, the management has revised upwards the guidance on the results and on the distribution of capital to shareholders for the 2024 financial year. Banca Mps are also under the microscope, after the publication of the first quarter numbers, archived with a net profit of 333 million, up 41% compared to the result of the same quarter of 2023 and higher than analysts’ consensus estimates (280 million). Stocks are volatile after the recent run, however. On the other hand, Finecobanks are weak while waiting for the quarterly report. The Amplifons are still on the rally following the release of the accounts. And Stmicroelectronics, Snam Rete Gas and Davide Campari are still in evidence, as well as Telecom Italia, with Tim Brasil recording the best first quarter in its history. Off the main list, Anima Holding advances following the quarterly report and with the increase in the price target by numerous analysts.
The macroeconomic front
On the macroeconomic front, orders to the manufacturing sector in March in Germany recorded a decrease of 0.4% on a monthly basis and 1.9% on an annual basis, while the German trade surplus reached 22.3 billion euros, lower than estimates but higher than the 21.4 billion euros of February 2024. Today, investors will also look at data on retail trade in the Eurozone.
In any case, investors’ focus remains on the moves of central banks: in Europe, confidence in an upcoming rate cut remains high interest rates , while the situation is less clear in the States, with the macro data mixed. On the eve of the New York Fed president, John Williams, assured that there will be a rate cut, but that the current level of monetary policy is still “in a good position”, without denying that the surprise on the latest US inflation data is a source of concern. Caution was also expressed by the president of the Richmond Fed, Thomas Barkinaccording to which we still have to wait before easing monetary policy, as the risk remains that inflation in the real estate and services sectors could keep price increases high.
Meanwhile, the Reserve Bank of Australia kept its liquidity rate target unchanged at 4.35% and the interest rate paid on Exchange Settlement balances at 4.25%, as inflation is falling more slowly than expected. The Brazilian, Polish and Swedish central institutes will also meet this week.
