A stronger-than-expected slowdown in US inflation (+3% in June) is showing its clear market effects: Stocks are rallying on bets that the Fed hike cycle is coming to an end. Analysts think it will move again in July, but it may be the last rally. Asian stocks rose to a three-week high, with Hong Kong tech stocks entering a fourth day of rally as Chinese Premier Li Qiang returned to meet leaders of big tech companies, raising hopes of a tug-of-war and regulatory tightening on the sector. . coming to an end. On the other hand, Beijing needs its best forces to revive an economy that is still disappointing. The latest symptom: China’s trade collapsed in June, with exports falling 12.4% annually and imports falling 6.8% annually, due to a slowdown in global demand after interest rate hikes by central banks around the world to combat inflation. . Between January and June, China’s total trade volume fell by 5%, indicating the need for stimulus from the authority.
Piazza Affari starts out positively, but wary
Piazza Affari opened the day’s session higher, with Ftse Mib up 0.16% to 28,597.12 points initially. It ended yesterday sharply higher at +1.75%, on the back of a wave of slowing US inflation data. Moncler stock (+0.95%) stood out in the first trading sessions, followed by Stmicroelectronics (+0.5%), Finecobank (+0.48%) and Tim (+0.46%). Instead, top sales were recorded by Cnh Industrial (-1.07%), Leonardo (-0.67%), Prysmian (-0.32%) and Ferrari (-0.24%).
Close a sharp rise in the Tokyo Stock Exchange
The Tokyo Stock Exchange ended its trading with a continuous rise after the latest data that showed a decrease in inflation in the United States, and the possibility of the Federal Reserve stopping tightening monetary policy. The benchmark Nikkei index advanced 1.49% to 32,419.33 points, with a gain of 475 points. In the foreign exchange market, the yen regained its strength against the dollar at 138.30, and against the single currency at 154.20.
Enel, sold in Australia for 400 million
Enel, through its wholly owned subsidiary Enel Green Power, has signed an agreement with Inpex Corporation, to sell 50% of the two companies that own all of the group’s assets in Australia, namely Enel Green Power Australia Pty and Enel Green Power Australia Trust, which is currently wholly owned by EGP, For a total consideration of approximately 400 million euros of the value of the project, indicating 100%, of which approximately 140 million euros is debt. The operation, the company explains in a note, is in line with Enel’s current strategic plan, which envisages the creation of partnerships in certain companies and geographies to increase value creation.
Asian stock markets are running thanks to lower inflation in the US
Asian stock markets were reassured that US inflation slowed in June, which could put a stop to the Fed’s interest rate hike. In Tokyo, the Nikkei index posted an increase of 1.48%. Chinese stocks rose sharply despite disappointing data posting a 12.4% year-on-year decline in Chinese exports in June. In Hong Kong, the Hang Seng Index rose 2.42%, in Shanghai the Composite Index gained 1% while the Seoul Composite Index gained 0.84%.
Wall Street hit its highest levels since April 2022. The Euro has never been so strong in over a year
Yesterday, the session on Wall Street rose and closed at the highest level since April 2022 after inflation slowed in the United States. Consumer prices rose 3% annually in June, the lowest level since March 2021, down from 4% in May. The “core” figure, that is, the number that strips out the component of food and energy prices, rose 4.8%, the lowest level since August 2021, after +5.3% in May. Producer prices are also expected today, again from last month. This data will give investors additional clues about the Fed’s next moves; Now, some analysts believe that the US central bank can stop the tightening with a July hike, which is now considered a certainty. The Dow Jones rose 0.25%, the S&P500 rose 0.74% and the Nasdaq rose 1.15%. Dollar weakness as the euro rose, in fact, by 1.14% to $1.1136, the highest in over a year.
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