by Eleonora Micheli
In Europe, tech shares are well positioned, in the wake of the sprint by the American Nvidia which published figures and estimates above expectations. The euro is weak, gas at its lowest since May 2021
3′ of reading
(Il Sole 24 Ore Radiocor) – Le European stock exchanges I am in a timid recovery, after the braking of the last sessions. He encourages the performance of Wall Street which yesterday attempted a rebound with technology stocks, thanks to the good optimism created by Nvidia which published higher-than-expected quarterly results and revised upwards its forecasts for the second quarter, driven by chip requests needed for artificial intelligence. The shares boasted a 24.3% gain and thus supported the Nasdaq, which rose 1.7% (the Dow Jones lost 0.11%, the S&P 500 was up 0.88%). At the start, the main indices are positive.
But the knot remains on the US debt and on the moves of the central banks
Overseas, however, there remains the fear that a bipartisan agreement will not be reached to raise the public debt ceiling, even if the negotiations continue. Yesterday the president, Joe Biden, after yet another meeting with the Republican speaker, Kevin McCarthy, said: «we agreed that there will be no US default». The rating agencies, however, are alarmed, given that the June 1st deadline is approaching and the US Treasury currently has only 60 billion in the Fed’s coffers. In the absence of an agreement, the States will fall into default as early as the beginning of June. On the macro front, it emerged yesterday that US GDP in the first quarter increased more than expected, at an annualized rate of 1.3%, after +2.6% in the fourth quarter of 2022. Investors, however, fear that a this point the Federal Reserve also has room for further rate hikes, even if in the mid-June meeting the institute should leave the cost of money unchanged, at least according to the experts’ expectations. During the day, the data on personal income, consumer spending and PCE inflation for April are scheduled to be published. Even in Europe the puzzle over the ECB’s moves remains, even if the number one, Christine Lagarde, has repeatedly reiterated that the priority for the institute is to fight inflation, thus foreshadowing new rate hikes. Still on the macro front, it was announced today that UK retail sales increased in April by 0.5% in volume compared to March, when they recorded a revised decline of 1.2%. Year-over-year, the decline is 3%, slightly down from the -3.9% recorded in March. Compared to the pre-coronavirus (COVID-19) level in February 2020, total retail sales increased by 16.5 % by value, but volumes were down 0.8%.
In Piazza Affari well St, at the Tim post
In Piazza Affari, the actions ofStmicroelectronics, in the wake of technology stocks on the shields since yesterday. Moncler is slightly above parity, although yesterday both Giorgio Armani and Chanel published 2022 accounts up and above pre-pandemic levels, with prospects also good for the current year. Indications that bode well for the fashion and luxury sector. Telecom Italia is at a standstill and remains the center of attention, with investors wondering about the future of the company and the possible tweaks of the offers for the network.
Euro weak against the dollar, gas in sharp decline
On the foreign exchange market, theeuro it remains weak on the greenback: it is worth 1.0735 dollars (closing yesterday at 1.0721). It also changes hands at 149.9 yen, while the dollar-yen stands at 139.64. The petrolium attempts a slight recovery after the slowdown on the eve, caused by the news that Russia has closed the doors to the possibility that the OPEC+ countries may decide on further production cuts during next week’s meeting. The wti July maturity gains 0.29%, settling at 72.04 dollars a barrel. Finally it is sharp decline in gas: the June contract stood at 24.3 euros per megawatt hour, down 4.5%. These are levels not seen since May 5, 2021.
Tokyo closes up 0.4% thanks to tech and yen weakness
Tokyo Stock Exchange closed higher, supported by the tech sector and the persistent weakness of the yen. The main Nikkei index rose 0.4% to finish the session at 30916.31 points. In the technology sector in particular, Nvidia’s solid prospects drove investor morale. Gains on the benchmark index were led by semiconductor and electronics-related companies such as Sanken Electric, which rose 9.6%, Screen Holdings, up 5.8% and Tokyo Electron, up 4.4 percent .
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Eleonora Micheli
Radiocor editor
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