The Fed is tonight, tomorrow it's the ECB's turn. The Bags they take for granted a 25 basis point rate hike by both central banks and, waiting for any clues about their future intentions, they turn their attention to the quarterly reports. Above all, luxury is targeted, weighed down by the crash of Lvmh, but also Hi-tech, with Google-Apple flying to New York.
Lvmh sends European luxury into the red
Crolla lvmh after the sales data for the second quarter, substantially in line with expectations, fueled analysts' fears about the possible end of a cycle of strong growth in the sector, which had accustomed the market to continuous positive surprises. The largest luxury group in the world dropped almost 4,8% and dragged the Paris Stock Exchangeblack shirt of the day with a drop of 1,37%, but also the entire luxury sector. Still in Paris Kering e Hermes lose respectively 1,47% and 2,44%, while Essilor Luxottica scores a 2% drop despite a positive half-year and the announced entry into the hearing aid sector with the launch of the first eyewear that corrects hearing defects. It is no better in Zurich, where Richemont closes down by 1,66%, nor in Milan with Moncler leaves 1,5% on the ground, BRUNELLO CUCINELLI 2,7% and Salvatore Ferragamo 0,49%.
Stock exchanges July 26: Europe on the swing, Wall Street awaits the Fed with the flight of Google
The thud in Paris is accompanied by the uncertainty of the other lists, weak awaiting confirmations and indications from the Fed and the ECB. At the end of the ride Frankfurt yields 0,5% after accounts of Deutsche Bank (+1,46%), on the same level Amsterdam (-0,6%). Down too London (-0,27%), the best Madrid (+0,8%) waiting for news on the future government. Milan withstood the blow thanks to the banks and Stellantis and, after having exceeded the threshold of 29 thousand points again, ended the session just above parity. The final balance says: +0,05% 28.980 points.
Wall Street takes a break waiting for the next rate hike by the Federal Reserve, which will be announced at 20 pm today, Italian time. It is the eleventh time since the beginning of 2022 that the Fed has raised rates and the solid economic growth of recent months does not make it obvious that this adjustment will also be the last. The markets estimate with a 98,9% probability that the Fed will raise interest rates by 25 basis points today in a range between 5,25% and 5,50%, while on future hikes the probabilities fall around 30%. Investors' eyes are focused above all on the press conference of Fed chairman Jerome Powell, which could give important indications on the future of US monetary policy.
In this context, the Dow Jones travels around parity, lo S & P 500 yields 0,2%. The is down by half a percentage point Nasdaq, despite the exploit of Google Alphabet (+5,5%) driven by stronger-than-expected second-quarter earnings and strong cloud computing revenue growth. Losing ground, however, is the other large company that published the quarterly yesterday: Microsoft (-4%), which disclosed numbers above expectations. However, the markets' attention was focused on the revenues of Azure and its other cloud services, which grew by only 1 from the previous quarter.
In Piazza Affari the banks and Stellantis run
La quarterly above expectations posted this morning by Unicredit (+0,16%) has put the Italian banks in a good mood, which are at the helm of the Ftse Mib. The best is Bper (+3,9%) closely followed by Ps (+3,57%). Up too Bpm bank (+1,15%), more cautious Intesa Sanpaolo (+0.08%) pending Friday's bills.
On the shields too Stellantis after the quarterly which showed a net profit up 37% to 10,9 billion euros (+2,91%). Positive too Telecom Italy (+1,1%). The shareholders' meeting of Tim Brasil Servicos and Participacoes resolved to increase the total amount of the non-convertible bond intended for institutional investors by 750 million reais, approved on 12 July last. Following the increase, the bond will have a maximum value of a total of 5 billion reais, equivalent, at current exchange rates, to around 950 million euros.
Among the utilities, Italgas (+ 1,13%) and Hera (+1,08%) celebrate the quarterly while Enel, pending the accounts, announced the sale of 50% of Enel Green Power Hellas to Macquarie for 345 million euros.
The worst title of the session is instead Campari, which published growing accounts but with slightly lower than expected numbers (-3%). Male Moncler weighed down by the negative performance of luxury e Amplifon (-1,39%), fearful of the news announced by Essilux. Negatives too Prysmian (-1,34%), Cnh Industrial (-1,27%), stm (-1,14%).
Slightly decreasing spreads, gas prices are falling again
While waiting for the ECB, lo spread between Btp and Bund he closes the day slightly down to 162 basis points from 164 on the eve, with the yield on the Italian ten-year bond standing at 4,1054%.
On the foreign exchange front, theeuro is stable at 1,1064 dollars, while among commodities the Petroleum proceeds without momentum: the WTI with a delivery contract in September trades at 79,2 dollars a barrel (-0,5%) and Brent in the same month at 83,43 dollars (-0,25 percent).
The price of gas natural TTF on the Amsterdam market falls again below 30 euro/MWH, settling at 29,25 euro (-10,39%).
