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(Il Sole 24 Ore Radiocor) European stock markets started on the rise, but then slowed down, with most indices fluctuating nervously around parity. Investors are torn on the line to follow, after the stellar accounts published by Nvidia and at the same time the hawkish indications contained in the minutes of the latest meeting of the Fomc, the operational arm of the Federal Reserve, in which a further increase is not even ruled out of rates, if inflation continues to remain high. On the other hand, the market is also betting on the fact that artificial intelligence opens a new chapter in industrial history. The proof is Nvidia’s quarterly report published last night and which, thanks to the requests for AI, once again beat expectations, with revenues soaring by 262%. Meanwhile, the future on the Nasdaq is rising, that on the Dow Jones is flat, after Wall Street recorded a slight slowdown yesterday. In Milan the Ftse Mib, after a rising start, abruptly slowed down, reaching the closing values of the day before, while the spread is hovering around 128 points.
European manufacturing and service sector activities are improving
On the macro front, it emerged that in the Eurozone the composite PMI index, which measures the performance of manufacturing and service sector activities, improved to 52.3 points in May, updating a 12-month high. In detail, the services sector remained stable at 53.3 points, while the manufacturing sector improved from 45.7 to 47.4 points. This is the best for 15 months. This index, however, remaining below the 50 point threshold, reflects a contracting manufacturing sector. «Faster increases in business activity, new orders and employment – comments the S&P Global note – were all recorded in the middle of the second quarter, while business confidence reached its highest level in 27 months. Meanwhile, both inflation and input and output cost rates eased compared to April, but remained above pre-pandemic averages.”
Nvidia is charging ahead with accounts flying and stock splits
In the night Nvidia, for the umpteenth time, reported better than expected profits and revenues and moreover it also confirmed the rumors that had been circulating for some time about a new share split, after the dizzying run recorded by the shares. In detail the tech company announced a 10-for-1 stock split plan. But returning to the quarterly report, thanks to the push from requests for processors for artificial intelligence, Nvidia closed the January-March period with revenues of 26 billion dollars, an increase of 262%, and a net profit of 14.81 billion dollars, or $5.98 per share, up significantly from $2.04 billion, or 82 cents per share, in the same period of 2023. Adjusted earnings per share jumped 461% on an annual basis to $6.12, well above forecasts. Guidance was also positive for the months to come: Nvidia expects revenues worth $28 billion for the current quarter, higher than the $26.61 billion sales expected by analysts. In the end Nvidia announced a 150% increase in quarterly coupons, which will rise to 10 cents per share, compared to the current 4 cents per share. Considering the effects of the stock split, the new coupons – which will be paid to shareholders on June 28th – will have a value of 1 cent per share.
St still on the rise in Piazza Affari, Banca MPS slows down
Stmicroelectronics continues its run in Piazza Affari, after the good performance of the day before. The stocks benefit from the performance of the tech sector, which has been boosted by Nvidia. On the other hand, Banca Mps, after the rise of the day before, has taken the downward path, thanks to the article in the Sole 24 Ore according to which the Mef is preparing to exit the capital in order to respect the agreements made with Brussels (it owns in fact 26.7% of the actions involve disengagement by the end of the year. Meanwhile, the lock up on the quota will expire at the end of June. According to Il Sole 24 Ore, the Treasury could sell the shares on the market, as done in recent months for other shares, or proceed with a direct sale to third parties, such as Foundations. The hope of a marriage also remains in the background, which however for now appears difficult to achieve, with possible suitors still in positions, from Unicredit to Banco Bpm via Banca Pop Er. Outside the main basket, Webuild suffered a decline of 9% after the placement of Salini bonds exchangeable with its shares for a value of 225 million.
Euro at 1.082 dollars, crude oil still down
On the currency, the euro weakens to 1.082 (1.083 on the eve) and is worth 169.58 yen (169.61), while the dollar/yen cross is at 156.65 (156.47). Oil is still falling, with Brent at 82.48 dollars a barrel (-0.53%) and WTI at 77.06 dollars (-0.63%). Finally, natural gas rises in Amsterdam, marking a live increase of 0.3% to 34.5 euros per MWh.
