It has been a positive week for the stock markets, with the Milan index rising by 2.66% to 34,528 points and recovering from the previous week’s decline. Today, there is a 0.50% increase at the opening. In the United States, markets rose after the release of weak job market data, with new unemployment claims reaching 231,000, up from the previous week’s 209,000. This news, while negative, increased the likelihood of a rate cut in America, with a 70% probability of at least a 25-point cut in September according to CME Group’s FedWatch Tool. Quarterly earnings reports have also contributed to the market gains, with companies like Nexi, Prysmian, and Pirelli seeing positive results.
Yesterday, companies like Iveco (+6.74%), Mediobanca (+1.91%), and Unipol (-0.23%) released their quarterly earnings, with Enel also making gains at +3.41% after its results were released after markets closed. In Asia, the Hong Kong stock market continues its strong recovery, rising by 2.36% today and by 10% in the last month, and 15% from its lows on April 19. Beijing is reportedly considering not taxing dividends for stocks listed in Hong Kong, further boosting the market. The BTP Value closes its fourth tranche placement today, with orders totaling €10.26 billion as of yesterday, slightly lower than the average of 16 billion after four days for previous issuances.
Overall, the market is showing positive signs of recovery and growth, with both domestic and international factors contributing to the upward trend. The possibility of a rate cut in the US has boosted investor confidence, as companies continue to release strong quarterly earnings reports. In Asia, the Hong Kong stock market’s impressive performance is particularly noteworthy, with Beijing’s potential tax incentives for listed companies generating further optimism. Despite some slight variations in individual companies’ earnings reports, the overall trend is positive, with market indices showing consistent gains.
In conclusion, the stock market has had a successful week, with the Milan index rebounding and markets in the US and Asia showing positive momentum. The likelihood of a rate cut in the US has boosted market confidence, while strong quarterly earnings reports from companies like Nexi and Enel have contributed to the overall positive trend. As the BTP Value closes its fourth tranche placement and Hong Kong’s stock market continues to surge, investors are optimistic about the future growth of the markets. With various factors at play, including economic data and corporate earnings, the outlook for the stock market remains positive in the coming days and weeks.
