A weak session for the financial markets in light of the double appointments with the central banks scheduled for the week. One year after starting hiking trips Christine LagardeObservers are still expecting a quarter point move at Thursday’s top. Alternatively, haze could linger over what path to take for the next meeting, in September, in which some analysts expect a final move while others lean B.C.E. Take a Break.
Before Eurotower, however, it will be a turn feed it Here again the forecast is +25 basis points. In anticipation of these important developments, investors note the contraction of the main economies in the region with the emergence of the single currency with the manufacturing indicators of the PMI index: in Germany, the July index collapses to 38.8 points, against estimates of 41, and therefore well below the neutral threshold of 50 points. Services comes in at 52 from the forecast of 53.1 points. The composite fell to 48.3 from the 50.3 indicated by the analysts. Indicators are also lower for France with manufacturing falling to 44.50 from 46 in June and services to 47.4 from 48, both below market expectations. Thinking is inevitable Purchasing Managers’ Index for July for the entire EurozoneManufacturing: Manufacturing fell to 42.7 from the forecast of 43.5. Services stood at 51.1 from an analysts’ 51.5. The composite score is at 48.9 from an estimate of 49.7.
UBS is fined $387 million in the US over the Archegos case
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European stock markets closed mixed
European stock markets closed mixed pending interest rate decisions from the Federal Reserve (Wednesday) and the European Central Bank (Thursday). Eyes also focuses on a series of important quarterly reports in Europe and the USA. In London, the FTSE 100 closed up by 0.21% to 7679.63 points, in Paris the CAC 40 fell by 0.07% to 7427.31 points, in Frankfurt the DAX was flat (+0.08%) to 16190.25 points and in Madrid the IBEX 35 fell by 0.30% to 9542.53 points, also conditional Uncertainty about the elections. In Milan, the Ftse Mib registered +0.19%.
Wall Street is positive, highlighting the Fed
Wall Street continues on a positive note in a crucial week for the US economy between the expected decision of the Federal Reserve and the quarterly reports of major technology companies. The Dow Jones rose 0.41% to 35,372.02 points, the Nasdaq rose 0.21% year-on-year to 14,064.34 points, while the S&P 500 posted a gain of 0.37% to 4,553.16 points.
Europe slows down mid-session
A stagnant morning for European stock exchanges, which are awaiting a new interest rate hike by the Federal Reserve and the European Central Bank during the week, in addition to a new round of quarterly accounts. Investors are hopeful that the latest weak macroeconomic data in the Eurozone will convince central banks to end the tightening cycle, as the Bank of Japan is expected to confirm its ultra-loose monetary policy on Friday. In Piazza Affari, Ftse Mib is down 0.15%, but it will be the net positive impact associated with the separation of the Enel and Pirelli coupon, which is 0.3812%. In the rest of Europe, Madrid (-0.77%) is experiencing uncertainty following the political election results. London (-0.06%) and Frankfurt (-0.07%) moved slightly, while Paris lost 0.48% and Amsterdam 0.38%.
Vodafone, in Italy revenues from services exceed a billion
Vodafone Italia ended the first quarter with revenue from services at €1.03 billion, down 1.6%, while revenue from fixed network grew by 8.7%, to €333 million. The latter partially compensated for the decline in mobile. Revenue from “wholesale” (wholesale between telephone operators, Mr. Dr), while the mobile customer base is stabilizing. In particular, I have.
The number of mobile customers reached 3.1 million customers, while ultra-broadband services are available to 23.8 million families and companies, and “Fwa 5g” services reach 3.6 million families and companies. Added to this are the “Fwa 4g” products that reach another 1.7 million households.
Madrid black shirt after the vote
The stock market fell in Madrid in the session that followed the Spanish elections yesterday, with the Popular Party led by Alberto Núñez Figo taking first place with 33% of the vote, but without the possibility of forming an absolute majority to rule. Pedro Sanchez’s PSOE got 122 seats, and Santiago Abascal’s Fox 33. And the Ibex index lost 1.11%, to 9,465.21 points. The Paris Cac index also declined, dropping 0.47% to 7,397.74 points, the Frankfurt Dax fell 0.03% on the floor at 16,173.05 points, and the London FTSE 100 fell 0.17% to 7,652.30 points.
Poor opening for the European Union
A weak opening for the major European stock exchanges in the first session of the week. Paris lost 0.36 percent to 7,405 points, London lost 0.28 percent to 7,641 points, and Frankfurt lost 0.31 percent to 16,126 points. Madrid heavy (-1.54% to 9424 points), following a vote that did not lead to a certain government majority.
Sharp rise in Tokyo, driven by a weaker yen (+1.21%)
The Tokyo Stock Exchange ended the first session of the week sharply higher, supported by a weaker yen, amid expectations to maintain the ultra-expansionary monetary policy of the Bank of Japan (BoJ) at this week’s meeting. The Nikkei benchmark recorded an increase of 1.21% to 32,700.94, an increase of 396 points. In terms of exchange rates, the Japanese currency continued its decline against the dollar at 141.50 and 157.50 against the euro.
Stellantis-Samsung, agreement to establish a second US giant factory
Stellantis and Samsung Sdi have signed a Memorandum of Understanding to build a second battery production plant in the United States under the StarPlus Energy joint venture. The plant, which is scheduled to start production in 2027, aims to have an initial annual production capacity of 34 GWh. The location of the new site is being evaluated. In May last year, Stellantis and Samsung Sdi announced their commitment to build the first battery factory in the United States in Kokomo, Indiana. The launch is scheduled for the first quarter of 2025 and the plant’s annual production will be 33 GWh, which is above the initial target of 23 GWh. “This new plant will help achieve our ambitious goal of delivering at least 25 new battery electric vehicles to the North American market by the end of this decade,” said Carlos Tavares, CEO of Stellantis.
Vodafone’s quarterly revenue decline
Vodafone ended the first quarter of the 2023/2024 financial year with consolidated revenue down 4.8% to €10.74 billion. It fell by 4.2% to 9.11 billion, but in both cases the organic growth was 3.7%, versus the 2.88% expected by analysts. Full year estimates were confirmed with EBITDA of approximately €13.3 billion and adjusted net cash of €3.3 billion.
Bearish futures for EU stock exchanges and Wall Street
Major European stock exchange futures fell at the start of the week when the European Central Bank meets. Markets expect the central bank to raise interest rates by another 25 basis points and at least 98% of investors expect it to do the same before the end of the year. The DAX in Frankfurt was down 0.23%, the FTSE 100 in London was down 0.27%, and the Euro Stoxx 50 was down 0.23%. Futures are ‘alert’ on Wall Street in light of the first session of the week in which the Federal Reserve, European Central Bank and Bank Boj meetings are expected and the publication of a series of ‘super’ quarterly reports including those from Alphabet, Amazon, Microsoft and Meta. Dow Jones futures are at -0.01%, S&P 500 futures are +0.02%, and the Nasdaq is up +0.12%.
Mixed bags in Asia
Concerns about the performance of the Chinese economy are keeping Asian stock markets under pressure, pending guidance from some important central banks. There is also anticipation of a Chinese Politburo meeting this week which could announce more stimulus, although so far investors have been disappointed by Beijing’s moves. Hong Kong’s Hang Seng fell 1.65%, Shanghai 0.14% and Shenzhen 0.29%. In contrast, the Kospi in Seoul (+0.68%) and Tokyo, with the Nikkei at +1.12%.
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