The Tokyo Stock Exchange starts the first session of the week with a sustained increase, following the signals that anticipate the achievement of a general agreement on the US debt ceiling, avoiding default. At the beginning, the Nikkei reference list rose by 1.52%, to 31,384.95, adding 468 points. On the foreign exchange market, the devaluation of the yen against the dollar continues, to 140.80, and against the euro, just below a level of 151. The Chinese stock exchanges also open the session with indices slightly up: the Shanghai Composite index rises by 0.23%, to 3,219.76 points, while that of Shenzhen gains 0.24%, reaching 2,017.36. Same thing for Hong Kong, which opens in positive territory: the Hang Seng index rises by 0.43% in the early stages, reaching 18,827.08 points.
The agenda and the weak Turkish lira
As far as Europe is concerned, investors are focused on the Italian non-EU trade balance for the month of April. Meanwhile, the Turkish lira weakened after Recep Tayyip Erdogan won the presidential election runoff on Sunday, extending his tenure as the nation’s longest-serving leader and leaving investors looking for any signs the state’s grip is easing. on the markets. The lira fell 0.3% to 20.03 to the US dollar, close to a record low, before trading at 20.01 at 6:40am Istanbul time. Wall Street sees further weakness for the lira, with Morgan Stanley warning it could hit $26 sooner than expected and slide towards $28 by the end of the year if Erdogan sticks to his policy of keeping rates low of interest. Wells Fargo & Co expects the currency to hit 23 by the end of the quarter.
The day
Positive weekend for European stock markets after quite turbulent days. The Ftse Mib index gained 1.1% and the Dax 1.2% also in the wake of the good performance of Wall Street. At the center of market attention remains the issue of raising the debt ceiling in the US. Traders seem to be reassured by Biden’s statements that he ruled out a default. On the macro front, consumer confidence in the United States is declining and this has perhaps loosened a bit the grip on the hypothesis of further tightening by the Fed.
In Piazza Affari Stm which rises by almost 4% on the wave of increases in US technology after the very positive quarterly from Nvidia. Few stocks in the red including Telecom.
The BTp bund spread barely moved at around 187 basis points while the euro remains under pressure against the dollar in the 1.07 area.