MILAN – Oil continues to be the topic of the moment on the financial markets, after the surprise move by OPEC which announced production cuts of 1 million barrels to support prices. A move attacked by the White House and which certainly complicates the plans of the central banks, engaged in the fight against inflation. The Wti barrel, a reference for the American market, arrived on Monday at 81 dollars and rose even more during the night in Asian trading. “The production cuts have caused short sellers to end up under a bus,” Saxo analyst Jessica Amir summed up to Bloomberg, referring to those who bet on the declines in black gold. The stock markets are weak. Meanwhile, the last meeting of Credit Suisse takes place, saved by Ubs. President Lehmann: “I’m sorry we didn’t stem the crisis”.
Credit Suisse re-elects seven board members including Lehmann
The Credit Suisse general meeting re-elected the seven members of the board of directors who wanted their mandates to be confirmed, chief among them the chairman Axel Lehmann. The shareholders gave their approval with percentages of votes between 50% and 56% of the votes. Previously Lehmann had underlined how important it was to confirm the seven managers: it is in fact the minimum number set by the statutes. Five of the twelve members did not wish to be re-elected. “We still need a board of directors for two or three months,” the president said. They will be used to carry on the “transition phase” towards the merger with Ubs. In recent days there had also been important voices – for example those of the American consultancy firm Glass Lewis or the Norwegian sovereign wealth fund – which had spoken out against the re-election of Lehmann and other directors.
Wall Street opens flat
Weak start for Wall Street as investors await key economic data on the labor market for clues on the Fed’s monetary tightening path. Rising oil prices following announced OPEC+ production cuts renewed expectations fears about inflation, dent hopes that the US central bank will end aggressive rate hikes, despite recent signs of cooling prices and turmoil in the banking sector. In early trading, the Dow Jones lost 0.03% to 33,583 points, the S&P 500 advanced by 0.09% to 4,126.20 points and the Nasdaq rose by 0.08% to 12,199.16 points.
Credit Suisse, the president apologizes at the meeting: “I have disappointed you”
Credit Suisse chairman Axel Lehmann apologized to shareholders for the bank’s failure. “I apologize for not having been able to stem the loss of confidence accumulated over several years and for having disappointed you,” he said as he opened the general meeting, the bank’s last.
Nearly 2,000 shareholders arrived in Zurich to express their anger and ask top management to assume their responsibilities at the bank’s latest general meeting. In addition to the collapse of their investments, the participants are protesting the takeover by ubs, an operation which took place under pressure from the Swiss authorities, without any passage at the meeting.
Milan on the rise with Europe
Stock market solidly up mid-session, following the rest of Europe. The Ftse Mib index marks +0.51% at 27,318 points. Piazza Affari continues to gain ground for the seventh consecutive day, in a favorable climate on the main markets, without the oil price increases caused by the cut in OPEC production having brought new fears. On the list, which today reports gains lower than the other European stock exchanges, however, the progress of the banks stands out, with Bper +2.1%, Bpm +1.8%, Unicredit +0.9%. Financials in general also performed well, with Fineco +1.1%.
In industry, the car is on the move with Stellantis +0.70% after the data on registrations in March, Pirelli +2.2%, Ferrari +1%. Also on Prysmian and Leonardo. In energy, Eni and Enel moved little, Saipem climbs again with a +3.1%. Tim scores +0.9% as the process for the sale of the network continues.
Credit Suisse, the assembly. President Lehmann: “Sorry for not having saved you”
“We wanted to devote all our energies and efforts to turning the tables and getting the bank back on track. I am sorry that we did not have time to do this and that on that fateful week in March our plans were turned upside down. For this I am truly sorry”. This was stated by the president of Credit Suisse, Axel Lehmann, during the last meeting of shareholders, as reported by Bloomberg. “We failed to stem the impact of legacy scandals and counter negative headlines with positive deeds,” Lehmann said in remarks prepared for the bank’s annual shareholders’ meeting in Zurich, adding that ultimately, “the bank could not be saved”.
Contrasted closures for Asian stock exchanges, Hong Kong drops 0.58%
Asian stocks closed in no order after weak manufacturing data yesterday raised worries about slowing economic growth and the rally in oil prices stoked fears of higher inflation. Tomorrow many Asian squares (Chinese, Taiwan, Sri Lanka) will be closed for the Qingming holiday. In Tokyo, the Nikkei gained 0.35% to 28,287.42 points, while the broader Topix index gained 0.25% to 2,022.76. On mainland China, the Shanghai Composite rose 0.49% to 3,313 points, while the Shenzhen Component fell 0.25% to 11,859 points. In Hong Kong, the Hang Seng lost 0.58& to 20,296.50 points. The Kospi of Seoul increased, marking +0.33% at 2,480.51 points.
Industrial production prices fall in the Eurozone
In February, industrial producer prices decreased by 0.5% in the euro area and by 0.6% in the EU, compared to January, according to estimates by Eurostat, the statistical office of the European Union. In January, prices had fallen by 2.8% in the euro area and by 2.3% in the EU. Compared to last year, industrial production prices increased by 13.2% in the euro area and by 14.5% in the EU. In detail, industrial production prices in the euro area decreased in February by 1.6% in the energy sector and by 0.1% for intermediate goods, while prices increased by 0.3% for capital goods, by 0.4% for durable consumer goods and by 0.6% for non-durable consumer goods. Prices in total industry excluding energy increased by 0.2%.
European stocks ahead cautious
The European Stock Exchanges are moving in the name of caution while the slowdown on inflation and, above all, on oil remains after the OPEC cut. The wti moves above 81 dollars while the brent is at 85.6 dollars. Among the individual squares, Milan is weak with the Ftse Mib (-0.05%) which, however, holds 27,000 points. Frankfurt rose by 0.32%, despite the February trade balance surplus in Germany being reduced to 16 billion euros, however below analysts’ estimates. Paris gains 0.20% and London 0.15%. The area index of the Old Continent, the Stoxx 600, gains a quarter of a point with real estate and financials in the lead. The technological ones are weak and the index of banks is also doing well with the spread between Btp and Bund which remains stable at 184 points while the yield on the Italian ten-year bond rises to 4.12%. From the calendar there is expectation on the Credit Suisse meeting after the rescue of Ubs which, instead, brings together the shareholders tomorrow. On the gas front, the TTF in Amsterdam drops 3% and rises from the lows of the day to 49.8 euros per megawatt hour. For foreign exchange, the euro appreciates against the dollar. The single currency is trading at 1.0920 on the greenback.
Openings cautiously up for Europe
European stocks open slightly higher, investors remain cautious amid fears of excessive increases in oil prices after OPEC+ cut production by 1 million barrels per day – with analysts speculating on price hikes of up to $100 per barrel – which raises fears of a slowdown in consumption. At the start of trading, the London FTSE 100 scores +0.64% with 7,718.79 points, the Paris Cac 40 +0.41% with 7,371.47, the Frankfurt Dax +0.37% with 15,634, 46. Piazza Affari in Milan was more restrained with the Ftse Mib index at 0.22% at 27,238 points.
Evergrande, creditors approve the plan
The restructuring plan proposed by the Chinese real estate giant Evergrande has been approved by a group of international creditors: it is a fundamental step in the company’s complex debt reduction process, which has been worrying the international markets for some time. This was announced by the same group, through a statement published by the Hong Kong Stock Exchange. The creditors who agreed to the settlement hold the majority of Evergrande’s offshore bonds, worth more than $20 billion.
The Central Bank of Australia halts rate hikes
The Australian central bank left its reference rate (cash rate target) unchanged at 3.60%, after 10 consecutive sessions of hikes. Reserve Bank of Australia (RBA) governor Philip Lowe said: “The board has made the decision to hold rates steady this month so we have more time to assess the impact of interest rate hikes until today and the economic prospects”. The RBA, with the aim of countering sharply rising inflation, announced the first increase in 11 and a half years last May, starting from 0.1%, an all-time record low, reached during the pandemic emergency. The interest rate on exchange settlement balances also remained unchanged at 3.50 per cent.
Oil still on the rise in Asia
Oil prices still rising in Asian markets, but at a slower pace than yesterday, after OPEC+ decided on Sunday to cut production by 1 million barrels a day. Currently contracts on WTI are sold at 80.6 dollars a barrel, up by 0.27%, while those on Brent at 85.1 dollars, with a gain of 0.26%.
Asian stocks mixed as oil prices weigh
Asian stocks are trading mixed on investor concerns about the impact of rising oil prices on inflation after slowing US inflation led to hopes the Fed would slow its interest rate hikes. With the Chinese markets closed for the Festival of Luminosity, Tokyo proceeds positive with the Nikkei at +0.26%, while in Hong Kong the Hang Seng loses 1.07%. The Seoul Kospi increased by +0.43%.