JP Morgan issues ‘economic hurricane’ warning, June starts badly for European stock exchanges

JP Morgan issues ‘economic hurricane’ warning, June starts badly for European stock exchanges

(Il Sole 24 Ore Radiocor)The alarm sounded by JPMorgan CEO Jamie Dimon, who sees an “economic hurricane” on the way and positive macroeconomic data published in the US, which paradoxically raises market concerns as it could prompt the Federal Reserve to accelerate its monetary policy tightening, may Stocks disrupted the markets in the first session of June. The European stock exchanges Thus, they lost their share in the final, and were also punished by the decline of the American indices. In Piazza AvariFTSE MIB It closed at the lowest levels today. Among the Milanese stocks with the highest capitalization, Stilants Capitalizing on the good moment for the entire auto sector in the wake of bright profitability forecasts for Japanese companies based on an analysis by JP Morgan. up too Leonardo – Finmeccanica And the Pirelli and CWhile Saipem It lost 4.09% despite the new rise in oil prices and the sale of onshore drilling: market focus on impending $2 billion capital raise. The Eurostoxx50 was largely flat in May (-0.3%) while remaining negative 12% since the start of 2022. The Stoxx600 lost 1.3% in May and is in the red with 9% YTD. also positive Wall Street. US President Joe Biden met with Federal Reserve Chairman Jerome Powell at the White House yesterday. A somewhat unusual fact, but one that can be explained by concerns about price increases, which are affecting the economic recovery and the risks that weigh on the midterm elections next November. “Fighting inflation is our main economic challenge now,” the president said.

US manufacturing index is better than expected

On the macroeconomic front, the ISM manufacturing index rose in May in the US compared to April, marking the 24th consecutive month of expansion (above 50 points). The index rose to 56.1 points from 55.4, compared to expectations of 54.5 points. Also encouraging is the data on job offers, which for the eleventh consecutive month remained above the 10 million threshold, never being crossed before June 2021.

In Europe, on the other hand, the Small and Medium Enterprises Manufacturing In May it fell to an 18-month low to 54.6 points from 55.5 in April, but higher than the initial estimate of 54.4. The Retail sales in Germany, -5.4% in April. “Inflation hit a new record in May in the eurozone due to higher prices for energy and food products – says Luigi Nardella of Ceresio Investors – ECB bankers previously announced the end of bond purchases. .already at the end of June and rates were no longer negative by September.” However, Nardella asserts that inflation in Europe is due in large part to disruptions in the supply of goods, which were exacerbated by the war in Ukraine, and not by increased demand, as in the United States. European Central Bank options So they risk an excessive negative impact on an economy that is already slowing down.”

The auto sector rises, Japanese groups towards record profits

In Milan they lead the heights Stilants And the Pirelli and CStill shopping Pop eh bank who surrendered to Nixi Merchant acquisition activities over €318 million (a figure that could be increased to 66 million if financial targets are met). It starts and then takes the downward path by making a decision Saipem that sold onshore drilling operations. small movement Sanam retight gas Which got 5 billion cubic meters from the storage ship and gas-to-gas regasification for 350 million.

In the auto sector in particular, sector stocks across Europe were rewarded by investors on the back of the performance of major Japanese companies in Tokyo. Toyota scored about three and a half points, Honda more than four, and Nissan up 7.77% after JPMorgan analysts estimated record profits for the current year thanks to higher vehicle prices and cost cuts made to mitigate the impact of inflation.

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