Stock market: Europe tries to rally and awaits the ECB. Milan held back by the banks
The Fed leaves interest rates unchanged, as expected, with all eyes on the US PCE and GDP. Google and Samsung’s results disappoint, whilst Microsoft is in the spotlight. Tensions remain high in the Middle East, but oil and gas prices are cooling. On the Milan Stock Exchange, Campari takes a sharp tumble, whilst banks are weighed down by the cost of the budget measures approved by the Government
Le ultime da Radiocor
Borsa: Europa positiva in attesa Bce, Milano (-0,3%) frenata da banche e Campari
*** BTp: spread apre in calo a 115 punti, rendimento decennale scende al 4,51%
Prysmian: Battaini, nessun rallentamento data center, AI accelera piu' delle attese
(Il Sole 24 Ore Radiocor) - They are moving in a haphazard manner European stock markets are trading in a mixed fashion, as they grapple with geopolitical tensions and statements uncompromising statements by Donald Trump in the midst of the election campaign, the flurry of quarterly results – starting with the highly anticipated and mixed reports from Google and Microsoft, as well as Samsung – and the decisions by central banks. Today, the floor is given to the European Central Bank, after the Federal Reserve, as expected, left interest rates unchanged in the 3.75–4 per cent range: the US economy is solid and the only concern is inflation, according to central bankers, who will be closely monitoring the PCE inflation figure today, which is forecast to rise from 3.4 per cent to 3.6 per cent. There is also anticipation for the preliminary US GDP figure, which is estimated to have risen sharply from 2.2 per cent to 3.2 per cent. The market is pricing in an 80 per cent probability of a further rate hike in December.
In Milan, the FTSE MIB is grappling not only with quarterly results but also with the Government’s approval of the 26-billion budget, which presents a bill for the financial sector (banks and insurance companies) rising to 5.5–6 billion.
Highs and lows for Microsoft and Google. Samsung disappoints
On the eve of the close, Wall Street finished just above the break-even point, buoyed in part by anticipation of the results from Alphabet and Microsoft. Mixed results, with Google disappointing analysts and the share price falling by as much as 10 per cent in after-hours trading. Revenue rose at the fastest rate since 2021, though it fell short of estimates, whilst net profit of $26.17 billion was down and below expectations. Free cash flow was negative and below expectations. Alphabet has, however, maintained its full-year capital expenditure forecast at over $200 billion, with the aim of reaching $300 billion by 2027.
On the other hand, the quarterly results from Microsoft Corp was well received, with solid figures exceeding expectations, driven by a 48 per cent growth in its Azure cloud infrastructure business. Microsoft’s revenue rose to $92.28 billion, exceeding estimates, confirming Azure as its core business. Net profit rose to $36.63 billion. In Asia, it was a day to forget for Samsung shares following the release of its results, despite the company posting a record quarter in terms of total operating profit thanks to AI chips. Weighing on the share price were net profit figures that fell short of the consensus and cash flow below estimates, as well as the lack of updates on the shareholder remuneration plan.
Prysmian and ST in the spotlight on the Milan Stock Exchange. Campari down
On the Milan Stock Exchange, as reported, Campari (after trading had also been suspended) following its quarterly results. Stmicroelectronics , after a shaky start, has begun to fall following the release of its results. Meanwhile, Prysmian is, on the other hand, rising, driven by its results and an upward revision of forecasts.
