Tokyo closed slightly higher. On the agenda the Eurogroup and the Empire index of US manufacturing. Focus on government bond yields
by Andrea Fontana and Paolo Paronetto
Tokyo closed slightly higher. On the agenda the Eurogroup and the Empire index of US manufacturing. Focus on government bond yields
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The European stock exchanges are still running after a week that saw Milan gain a total of 5% and the Eurostoxx50 index 4.8%, while Wall Street has updated the distorted records. The support for the lists comes from the record increases in industrial production and Chinese retail sales, which are however compared with the lockdown periods at the beginning of 2020, but which nevertheless witnessed an acceleration of the post-Covid recovery.
China, retail sales and industrial production leap
In the first two months of 2021, retail sales grew by 33.8% in the People’s Republic, while industrial production registered + 35.1%. The data on industrial production is higher than analysts’ expectations (+ 30%). Retail sales are also above estimates (31.3%) and are also up 6.4% compared to the same period in 2019.The downside continues to be represented by the risk that a faster economic recovery than expected will lead to an overheating of inflation and an early end to the ultra-expansionary measures by central banks. The 10-year Treasury yield thus remains above 1.6%. On the stock market in Piazza Affari, the FTSE MIB, the best index in Europe, has come to earn a percentage point, and purchases on the various price lists reward first of all the car, travel and food sector.
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Stellantis rises in Milan after the dividend linked to Faurecia
Among the Milanese stocks with the highest capitalization, Stellantis stands out net of the distribution to shareholders of the Faurecia shares and the expected cash part (which is worth € 0.91 per share compared to the close on Friday). The shares are worth around 15 euros, down compared to the close of Friday 12 March (15.436 euros) but up compared to the correct price in light of the distribution of shares and Faurecia liquidity (which is worth 0.91
euro per share). “Despite the Faurecia distribution, we do not change our target price of 18.4 euros per share ‘, explain the analysts of Banca Akros, underlining that Stellantis shares 7 times the expected earnings per share for 2021 and 5.5 times the estimates for the 2022, compared to the average multiple of 9.3 times for western manufacturers (7.8 on expected profits in 2022). Consequently, they conclude, ‘Stellantis ex Faurecia still deals with a discount of 28-29% compared to competitors “
In the rest of the list, Astaldi loses about 15%: the exchange for integration into Webuild has been defined, which provides for the attribution to Astaldi shareholders of 203 WeBuild ordinary shares for every thousand shares owned. The operation will be completed by July.Terna, Inwit and Diasorin also run on the Ftse mib.