Ftse Mib accentuates losses in the latter part of the session and closes below 32,857 points, losing 2.7%. Piazza Affari therefore dropped below 33 thousand points, weighed by Tenaris And Prysmian which leaves 8.7% and 8.6% respectively in the soil. Heavy too Mrs (-6.7%) e Unicredit (-5.7%). The excellent performances are not enough to support the list price Ferrari (+2.5%) e Nexi (+1%), among several stocks to maintain the plus sign at the end of trade. The spread jumped to 144 against 136 at the opening.
It was also a tough day for other European stock exchanges with Paris and Frankfurt closing in the red by 2.1% and 2.3%. London was also negative, down 1% despite a Bank of England rate cut that kept the Ftse 100 above parity for most of the session. The markets of the Old Continent are paying for the turn of Wall Street which, after a positive start, turned red in the wake of data on the manufacturing sector in severe recession.
3:30pm Wall Street opens positive
American stock markets opened the session in positive territory following the Federal Reserve’s decision to leave interest rates unchanged, but opened more decisively after the first cut in September. At 3.30pm the Dow Jones gained 0.5%, the S&P 500 0.5% and the Nasdaq 0.4%. The rising start on Wall Street was not enough to revive the European stock market which remains below parity: the Ftse Mib lost 1.1%, to 33,392.93 points, the Cac40 1.3% and the Dax 1.1%. London bucked the trend, growing 0.4% after the Bank of England decided to cut interest rates, taking them from 5.25% to 5%.
Prominent in Piazza Affari Ferrariwhich gained 5.2% after the publication of half-year results, Nexi (+2,&%), Tim (+2%) e Inwit (+0.9%). getting off Tenaris (-6.6%), Prysmian (-5.5%), Amplifier (-3.5%) e Mrs (-3.4%). Spread to 139 points.
2pm Volatile Piazza Affari
Shortly after 2pm, the highly volatile Ftse Mib lost 1.32% to 33,317.51 points. They ran Ferrari (+3.9%), Tim (+2.16%), Nexi (+1.8%) e Leonardo. Instead, sales increased Tenaris And Prysmian after accounts (approximately -4.5%), Amplifier And Mrs (-3.3%).
10 am – Ftse Mib worsens on contracting PMIs, Italy improves. below Prysmian And UnicreditWell Nexi And Tim
At around 10 am the Ftse Mib worsened and fell 1.1% to 33,398 points with the Chinese PMI contracting and the European PMI, which was gradually declining. Well Nexi, Tim (+1.5%), Leonardo (+0.7%) e StM (+0.25%). below Prysmian (-3.2%), Amplifier, Unicredit And FinecoBank (approximately -2%).
In front of the corporation, the shares of BMW they lost more than 4% after the automaker reported a drop in profits due to weaker sales in China and higher production costs. Societe Generale fell more than 5% after the French retail division’s annual NII guidance was cut.
belts, Deutsche Post (1.4%) explained that they are on track to reach their goals by 2024 despite the drop in revenues in the second quarter. Also Anheuser-Busch (2.3%) e Nokia (1.7%) increased in Europe.
Manufacturing weakness in Italy has eased
The HCOB Italia manufacturing PMI index rose to 47.4 in July 2024, compared to 45.7 last month, exceeding market forecasts of 46.1 (all data below 50 indicate a contraction). Although this is the fourth consecutive period of recession, the trend of easing the crisis appears, with improved production and new orders.
Spain, manufacturing PMI fell in July
The HCOB Spain manufacturing PMI index fell to 51 in July 2024, compared to 52.3 last month and below the forecast of 52.5 (but above the watershed of 50, i.e. in the growth area). This is the lowest reading in the current six-month growth streak due to a slowdown in output and employment.
9.10 am – Ftse Mib in the red between inflation and China’s slowdown. Well StM And Mediobancabelow Prysmian
The Ftse Mib will begin the month of August with a decline, opening Thursday with a decline of 0.5% to 33,594 points. They went up StM, Nexi (+1.6%), Mediobanca (+1.3%) e Leonardo. below Prysmian (-3.5%), Tenaris, Amplifier (-1.5%) e Iveco (-1.2%).
8.30am – European stock markets are expected to be cautious after China’s sharp slowdown. Look Mediobanca And Prysmian
With inflation rearing its head in Europe as a result, a fact that could delay an ECB rate cut until September, Eurostoxx50 futures are moving cautiously and are above parity at 8.30 am on Thursday 1 August. In Asia, the Nikkei closed lower following the BoJ’s move to raise the value of the currency and the related rally in the yen. Nasdaq futures (+0.56%) were flat after a bullish session (+2.6%) following the Fed’s meeting with governor Jerome Powell that opened with the first rate cut in September.
Beware of China, whose macro data is always disappointing. Of note is the BoE meeting on Thursday, where markets expect a devaluation of the UK currency.
China’s manufacturing PMI surprisingly contracted
The Caixin China General Manufacturing PMI fell to 49.8 in July 2024 (in the contraction area, all values below 50 are) from 51.8 in June, below the forecast of 51.5. It was the first decline in factory activity since last October as new orders shrank after growing in the previous 11 months due to weak demand conditions and cuts to customer budgets. Additionally, purchasing levels decreased for the first time since October 2023.
The macro calendar for Thursday 1 August
09.45 Italy, manufacturing PMI
10.00 Eurozone, ECB, publication of economic bulletin
1:00pm BoE: rate decision and Bailey press conference (1:30pm
2:30pm USA, new requests for subsidies
16.00 USA, ISM manufacturing
In Piazza Affari, look out for…
Record income and earnings in year 23-24 for Mediobancawhich closes the second quarter of 2024 with a profit of 327.3 million and one dividend yield of more than 7%.
Prsysmian raises guidance for 2024 on Encore Wire: expected ebitda over 1.9 billion. Stable earnings and profits in the first six months. He received a Letter of Award from Spain’s Red Electrica for a power transmission project that will connect the island of Mallorca to the Spanish mainland. The cost of the project, says a note, is more than 500 million euros. First half results, followed by conference calls with media (8.30) and analysts (10.00).
Snam closed the first half of the year with total revenues decreasing but with continued growth in adjusted Ebitda, confirming the guidance for 2024. The Board of Directors also approved a potential issue of a hybrid bond of 1.25 billion to finance several strategic plans of external growth , including the acquisition of Edison storage, and the related investment plan.
Nexi closed the first half of the year with normalized group revenue of 300.6 million, up 3.4% on the year, confirming guidance for 2024. Conference call (9.30).
Eni signed an MoU with the Algerian state oil and gas companies Sonatrach and Sonelgaz to study the feasibility of an electrical interconnection project for the construction of a submarine cable that will enable the supply of electricity to Italian and European markets. Sonatrach announced this.
Terna has signed an ESG-linked Credit Facility Agreement for a total amount of 400 million euros. The line of credit, said a note, will have a duration of 5 years.
Geox closed the first half of the year with revenues down 9.4% and estimates a mid-single digit decline for the full year versus 2023 with operating margins up 50 basis points.
Tinext Golden Power has obtained permission to exercise the call option on the shares Defense Tech Holding which allows the group to hold a stake of approximately 60.09% of the company and launch a takeover bid for the remaining capital.
Azimut, results of the 1st half.
bank Mediolanum, first half results; followed by the conference call (4:00 pm).
Ferrari, first half results; followed by the conference call (3:00 pm).
Tim, conference call 1st semester (11.00).
Tenaris, first semester conference call (2:00 pm).
Ferragamo, first half results; followed by the conference call (6:00 pm).
ABROAD
Results: ArcelorMittal, Barclays, Bayerische Motoren Werke ( BMW), Credit Agricole, Deutsche PostING, Rolls-Royce, Societe Generale, Volkswagen. (All rights reserved)