Investors are starting to believe that Iran and the US are truly intent on reaching a peace in the Middle East and reopen the Strait of Hormuz after a document was signed yesterday 14-point memorandum of understanding. Thus the yesterday's bad mood on Wall Street after the new Fed chairman had adopted a "hawkish" posture in order to counter inflation, at the dawn of a new day he turned into optimism and desire to investThe price of the day once again set the pace Petroleum which dropped towards 77 dollars, while the stock index Asian is up for the fifth consecutive day, the Nikkei 225 Japanese stocks gained nearly 2% and government bonds strengthened. In addition, futures indicate a higher opening for Wall Street, while European stock markets remain more timid. Today will be the stage for the Bank of England which is also expected to leave rates unchanged at 3,75%.
US-Iran deal: Hormuz traffic will resume at no additional cost. Oil prices fall.
The United States and Iran have published the text of their agreement, which extends another 60 days of ceasefire announced in April to allow the two sides to negotiate a truce. The agreement also provides for the full resumption of maritime traffic "No additional costs" in the Strait of Hormuz. Trump told reporters he signed the document at the Palace of Versailles, near Paris. The memorandum of understanding is now in effect, a U.S. official said. Pakistani Prime Minister Shehbaz Sharif said Iran the Strait of Hormuz will reopen “immediately” and that the United States will lift the blockade “immediately.”
Oil futures prices crude U.S. benchmark crude oil fell 2,7% to $74,70 a barrel, while Brent fell 2,3% to $77,70 a barrel, its lowest level in three months.
Wall Street closed sharply lower yesterday following the hawkish words of the new Fed chairman
Yesterday on Wall Street all the main indices closed in sharp decline, suddenly reversing a trend of gains, after the words of the newly appointed Kevin Warsh to the Fed they convinced investors that the next move of the US central bank will be a rate increase.
Warsh, after having kept rates unchanged between 3,50% and 3,75% at the end of yesterday's FOMC meeting, stressed the need to tame inflation and other members of the Monetary Policy Committee have interest rates are expected to rise by the end of the year. Officials described the economic growth as “solid” and highlighted the strong increases in productivity and investments of capital, while making it clear that inflation has become a bigger concern than the weakness of the labor market. Warsh also announced the creation of a task force in charge of examine the Fed's balance sheet, amounting to $6.700 trillion, an issue he has long criticized. The group, he said, will examine whether "monetary policy flows from our interest rate tool or our balance sheet tool."
Il Dow Jones closed at -0,98%, S & P 500 at -1,21%, Nasdaq down 1,34%. All 11 major sector indices of the S&P 500 closed lower after the meeting. Stocks of SpaceX Elon Musk's stock closed down 4,9%, marking the first decline for the artificial intelligence (AI) company since its stock market debut on Friday.
But this morning the contracts futures on the S&P 500 index are jumped up 0,9%, while Nasdaq futures gained 1,5%.
Nikkei and Kospi shine in Asia, driven by tech and AI
In Asia, the area's benchmark index is up 1% and reaches its fourth consecutive session of gains, led by the Nikkei in Tokyo and the Kospi in Seoul in turn boosted by solid gains recorded by shares in the consumer goods sector. semiconductors and of the one tied to artificial intelligence.
In JapanTokyo's Nikkei index rose to a record intraday high for the fourth consecutive session, rising 1,7% above 71.000. yen hits two-year lows against the dollar at 160,6. Markets are expecting a intervention by the monetary authorities and most economists expect another rate hike by the central bank before the end of the year.
In ChinaHong Kong's Hang Seng Index is down 1,6%. The CSI 300 index is flat. Shanghai and ShenzhemThe stock market rose by 0,7%. TaiwanChinese regulators have pledged to accelerate the transformation of Shanghai into a true global financial hub and to encourage theadoption of the yuan abroad, As Beijing seeks to emphasize the country's stability amid global market volatility, six banks—the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the Construction Bank of China, the Communications Bank, and CITIC Bank—would be authorized to conduct offshore yuan exchange transactions in the Shanghai Free Trade Zone.
In South Korea, the index Kospi is up 1,5%, reaching the highs for the first time during the session. quota 9.000,68 points. In India, the stock exchange Mumbai, flat, while the signing of a trade and strategic agreement between India and the United States is seen as imminent.
According to most of the economists interviewed by Bloomberg, the central banks of Indonesia and the Philippines, two economies hit hard by the energy shock, are both expected to raise interest rates by a quarter of a point each on Thursday. The central bank Taiwan, instead, should leave rates unchanged.
The yield of government bonds The 10-year U.S. Treasury note fell four basis points to 4,45% after rising about five basis points following the Fed's decision. The two-year Treasury yield, highly sensitive to monetary policy expectations, fell two basis points to 4,16% after jumping 13 basis points in the previous session. However, yields on 10-year Australian and Japanese government bonds rose slightly this morning: the 10-year Japanese note rose 0,5 basis points to 2,605%.
The dollar index lost 0,2% today, after rising 0,7% in the previous session. Euro dollar appreciating to 1,152, after yesterday's drop of nearly 1%. Gold and silver are rising.'gold spot rose 1,32% to $4.314,09 an ounce. In the cryptocurrency market, the bitcoin lost 0,93%, settling at $63.776,04. Ethereum fell 1% to $1.728,00.
European stock markets opened slightly lower. At the Milan Stock Exchange, Leonardo, Unicredit, and Stellantis are all eyes on the market.
European stock markets are not enjoying the same enthusiasm as Asian stock markets and Wall Street futures and are expected to open slightly lower: the Eurostoxx 50 futures are at -0,2%.
Avio Ariane 6 launched 36 Amazon Leo satellites into Earth orbit. The successful launch marked the first use of the P160C engines.
Eni – PC Ketapang II Ltd, a unit of the Searah joint venture between Eni and Malaysia’s Petronas, has started construction work at the gas field in Indonesia.
Italgas – The Strategic Plan update is scheduled for June 23.
Poste Italiane Today, the extraordinary shareholders' meeting is expected to approve the capital increase to service the €10,8 billion takeover bid for TIM (€1,67 in cash + 0,218 Poste shares). The next key milestones are: Poste's standalone plan on July 24th, TIM's plan on July 30th, authorizations from the Bank of Italy and Consob by the end of July, and the subsequent launch of the offering, expected to close by the end of September.
Saipem The merger plan with Subsea7 has reached the EU Antitrust Authority, with the first decision expected on July 22. MF reports.
Stellantis – Maserati is in talks with two potential partners for a collaboration on its currently struggling luxury brand, CEO Antonio Filosa said during a parliamentary hearing.
UniCredit According to press reports, he proposed to Delfin an exchange between Delfin's 10,15% stake in Generali for UniCredit treasury shares. Delfin rejected the proposal, preferring cash payment, especially considering that UniCredit shares are at an all-time high.
OVS extension – Consolidated net sales for the first quarter amounted to €397 million, up 12% year-over-year, with an adjusted EBITDA of €29,4 million.
LeonardoThe joint venture between Leonardo and Edge expects orders exceeding €4 billion over the next five years.
GeneraliMorningstar lowered its rating to Sell, leaving its target unchanged at €36. Mediobanca raised its target price to €45,50, from €42.
UnderstandingMorningstar cuts its rating to Sell, with a target of €5 from €6,4.
