The night did not pass well with Asian stock markets down which they followed in turn the declines in the USA fueled by disillusionment with a rate cut by the Fed, but more generally with fears of a war escalation. Top Israeli military officials have reiterated that the country has no choice but to respond to the weekend’s Iranian missile and drone attack.
There Italian stock exchange and the main ones European financial centers they should begin the session in sharp decline.
US stock prices down, Fed cuts recede after data
The US stock market closed poorly yesterday, after a positive start that was supported by the drop in oil prices and the hope that international efforts to calm the escalation of tensions in the Middle East could help. But then the sales data kicked off the sales retail sales, above expectations which have led to the belief that the Federal Reserve will not be in a hurry to cut interest rates. The Dow Jones it left 0.65% on the floor, continuing on the bearish trail represented by six consecutive drops, existing since the 8th of this month. Bad day also forS&P-500, which closed the session at 5,062 points, down by 1.20%. The situation is clearly worsening Nasdaq 100 (-1.65%), as well as the S&P 100 down (-1.3%). Strong nervousness and generalized losses in the S&P 500 across all sectors. The greatest declines occurred in the IT (-1.99%), telecommunications (-1.63%) and secondary consumer goods (-1.62%) sectors. Among the best Blue Chips of the Dow Jones, Goldman Sachs (+2.93%), Intel (+1.77%), United Health (+1.47%) and Nike (+1.21%). The strongest sales, however, hit Salesforcewhich ended trading at -7.34%, but the negative performance of Applewhich drops by 2.19% and Microsoft drops by 1.96%.
The negative sentiment continues in the premarket: at around 7.10 am Italian time, i Dow Jones futures and on the S&P 500 they fell by approximately 0.22%, while i futures on the Nasdaq they lose 0.19%.
Asian stock markets follow the US decline.
Asian stock markets follow the US. China’s GDP grew by 5.3% above expectations
All stock markets in Asia are in negative. The Tokyo Stock Exchange was affected by the negative closing on Wall Street. The Nikkei index ended the day with a decline of 1.94% to 38,471 points, after fluctuating between a minimum of 38,322 points and a maximum of 38,765 points. Hong Kong loses 1.7%.
Shanghai loses 0.8%, despite the Chinese government communicated that the economy it grew in the first quarter of 2024 at an annual rate of 5.3%, beating forecasts of 5.0% and after +5.2% in the previous period. It was the strongest annual expansion in three quarters, boosted by Beijing’s support measures, while the Lunar New Year festival helped revive consumer spending. The government has set a GDP growth target of around 5% this year.
There industrial production Chinese was instead mixed and the retail sales below expectations. According to data from the Chinese Bureau of Statistics, industrial production grew by 4.5% on an annual basis in March 2024, less than the previous month (+7%) and the consensus (+6%). Retail sales performed worse than expected. THE consumptionin fact, in March they recorded an increase of 3.1% on an annual basis after the +5.5% recorded in February, while market estimates were for growth of 5.1%. Since the beginning of the year, sales have risen by 4.7%, decelerating compared to +5.5% in the previous period.
In Asia, it yen it reached 154.24 per dollar. T. Rowe Price predicts that the Japanese currency will continue to fall and could slip another 10% to 1980s levels due to the Bank of Japan’s reluctance to raise rates.
They rises again (+0.9% to 2,403 dollars an ounce) and does the same petrolium WTI on fears of an escalation of the war in the Middle East (+0.75% to 86.04 dollars a barrel).
What to follow today
European stock markets, including Milan, are seen opening sharply lower. Futures on the Eurostoxx 50 are indicating a decline of 1.4%. Gold rises by 0.75% to 2,401 dollars, WTI oil by 0.5% to 85.83 dollars. The markets are in risk off mode, futures on the Nasdaq are at -0.12%).
Mfe-MediaForEuropethe television group controlled by the Berlusconi family, has held talks in recent months with several banks ready to finance a potential bid for the German broadcaster ProSiebenSat.1 worth up to around 4 billion euros.
This is what emerges from some sources close to the matter and from some documents seen by Reuters.
Eni. The energy group Eni intends sell by the end of the year minority shares in its own biofuels and bioplastics divisions which could yield a total of around 1.3 billion euros to accelerate their energy transition. Three sources told Reuters. Eni has started preliminary discussions with industrial funds and investors to find a partner interested in a stake of up to 10% in the Enilive biofuels division, which could be valued at 10 billion euros or more, including debt. Eni is also in talks with two suitors to sell up to 30% of its Novamont bioplastics business, which could be valued at around 1 billion euros, including debt, according to the sources. These initiatives are part of the group’s broader strategy to create separate entities, called “satellite” companies, that can tap into specialized investors, helping Eni finance greener activities without taking resources away from oil and gas activities.
As for Stellantistoday the shareholders’ meeting will meet to approve the 2023 budget. Alfa Romeo has decided to change the name of its new sports compact car from ‘Milano’ to ‘Junior’ to dilute the criticism leveled by the Italian government over the alleged violation of the law on Italian Sounding.
Terna has signed an agreement with the banks to increase to 2.255 billion euros the maximum amount of the revolving credit line linked to ESG indicators signed last May for 1.805 billion
Highlighted Monte dei Paschi di Siena. The Morningstar DBRS agency improved the rating on the financial solidity of the Sienese institution by two levels, bringing it from “BB” (low) to “BB” (high); experts have improved the outlook to “positive”.
In the afternoon in Washington, on the sidelines of the spring session of the IMF and the World Bank, publication of the World Economic Outlook and press conference. At 4.15 pm publication of the Global Financial Stability Report, followed by press conference. Participating, among others, is Fabio Panetta, governor of the Bank of Italy.
Tags: Stock market April Bear sight sales Asia Escalation rates sow pessimism Gold oil
