Wall Street opens higher, with the S&P 500 at + 1.34% and the Dow Jones at 1.21%, in the wake of the positive quarterly results of the American companies Lowe and Target. Lowe, the retailer of household products, closed the first quarter with a net profit growing by about 30% compared to the first three months of 2019 to 1.3 billion dollars, recording an increase in online sales of the 80% in the quarter. Target, a company that operates in the large-scale retail sector, reported revenue growth of 11.3% year-on-year to $ 19.7 billion in the first quarter, with a 141% increase in online sales. Markets are awaiting the publication of the minutes of the Federal Reserve’s last Federal Open Market Committee meeting. Yesterday, President Jerome Powell in a testimony to the United States Senate confirmed that the central bank is committed to using all the tools at its disposal to support the economy in this difficult moment.
The main European squares change direction and exchanges continue in positive territory in the wake of Wall Street. In Milan the Ftse Mib rises by 0.50%, in Frankfurt the Dax grows by 0.54%, in Paris the Cac 40 remains on parity while in London the Ftse100 marks + 0.48%. The spread between BTP and Bund remains at 210 points after the boom in requests for the new BTP Italy. Markets continue to monitor developments on the € 500 billion recovery fund after Ecofin yesterday kicked off Sure, the $ 100 billion fund to support workers during the coronavirus emergency.
On the macroeconomic front, consumer sentiment in Europe improved in May. The consumer confidence indicator in the eurozone rose 3.2 points to -18.8 points while in Europe it rose 2.5 points to -19.5 points. In Great Britain, the inflation rate slowed to 0.8% (on an annual basis) in April from 1.5% recorded in the previous month.
The news published by the American website STAT News weighs on the markets that according to a group of experts, the biotech company Moderna would not have produced sufficient data to establish the success of the first experimental tests of the coronavirus vaccine. “Numerous vaccine experts interviewed by STAT concluded that, based on the information made available by the Cambridge, Massachusetts-based company, there is really no way of knowing how noteworthy, or not, the vaccine can be,” reads in the article.
The main Asian stock exchanges close the session in contrast. In Tokyo the Nikkei 225 rises to + 0.79%, in Seoul the Kospi grows by 0.46%, and in Sydney the Asx 200 gains 0.24%. In Shanghai, the Composite slides into negative territory and marks -0.51% on the news that the Chinese central bank, the People’s Bank of China (Pobc), has left interest rates on loans (Loan Prime Rate) unchanged at one year 3.85% and five years at 4.65%. The Hang Seng index in Hong Kong also fell slightly, closing at -0.17%.
The price of oil has increased the gains recorded in the last few days with the WTI at 33.5 dollars a barrel and Brent at 36.2 dollars a barrel.