The belief that the increase in US inflation in March, while higher than analysts’ expectations, is not such as to change the Fed’s monetary policy continues to support the mood of investors, who nevertheless await the start of the US quarterly season to understand if the good performance of the markets will be reflected in the corporate results. THE European stock exchanges are thus contrasted, while the trend of the pandemic and vaccination campaigns remains naturally in the spotlight after the temporary stop to serum by Johnson & Johnson. The FTSE MIB di Piazza Affari is held back by the weakness of the banking sector. Instead, luxury titles are highlighted, led by Moncler, after the indications arrived yesterday from the data on the turnover of the French giant LVMH in the first quarter of the year.
FTSE Mib stock market trend
ECB: from Next generation EU + 5% GDP, crucial vaccines for recovery
On the macroeconomic front, meanwhile, the ECB announced that the EU Next Generation plan could have an impact equal to 5% of the eurozone’s GDP, if used fully. Furthermore, the annual report on Eurotower activity also underlines that fiscal support both at national and EU level “has been essential to mitigate the impact of the pandemic on the economy. Although a temporary and profound economic contraction was inevitable due to the blockades, “the document reads,” it was important to minimize permanent damage to the economy by protecting production capacities and jobs.
Meanwhile, in a hearing at the European Parliament’s Economic and Monetary Affairs Committee, the number two of the ECB, Luis de Guindos, explained that “medium-term vulnerabilities remain high”, even if “public support has managed to contain the immediate risks to financial stability ‘. De Guindos confirmed the forecast for a strong economic recovery in the second half of the year, reiterating however that the success of the anti Covid vaccination campaign is essential “to prevent downside risks from materializing”.
Luxury featured in tow by Lvmh
Among the Milanese titles, as mentioned, the luxury sector is in evidence at the head of Lvmh thanks to the turnover of the first quarter better than analysts’ forecasts. The revenue numbers are “well above expectations”, confirms Equita, underlining that “the main surprise is in the fashion and leather goods sector”, which achieved organic growth of 52% on an annual basis against the + 30% estimated by the market. The news from the French giant, add the experts, gives “good hope also for profitability, given the strength of the divisions with higher margins”. Equita has thus raised the estimates of turnover and net profit for 2021 by 9% and 15 percent respectively. In Piazza Affari, purchases thus reward not only Moncler, but also Tod’s e Brunello Cucinelli.
BTP / Bund spread trend
Spread at 103 points. Weak dollar and higher oil
Widespread bond purchases across the Eurozone. The spread between ten-year BTP and the bund of the same duration it stood at 103 basis points, down slightly from 104 on Tuesday. The yield of the Italian stock falls to 0.73% from 0.76% on the eve of the year.