The stock markets have reopened following a positive period. Last week, the Ftse Mib index in Milan rose by 3%, the Cac40 in Paris by 3%, and the Dax in Frankfurt by 4%. London reached a record high after Friday’s GDP data exceeded expectations. Piazza Affari is close to its highest levels since 2008, with a slight decrease in opening trading today. Stock indices in the rest of Europe are also relatively stable. The banking sector in Italy is under observation due to a government amendment that extends the period for deducting tax credits from the Superbonus program to 10 years instead of 4, with retroactive effect from January 2024. The Ftse Italy All-Share Banks index is down by 0.34%, with Banco Bpm, Bper Banca, and Banca Popolare di Sondrio experiencing the biggest drops.
Among other stocks in the Ftse Mib index, Diasorin and Nexi saw the largest increases, while Iveco and Leonardo had the biggest declines. Wall Street is also experiencing a positive trend, with the Dow Jones index rising for 8 consecutive sessions and the S&P 500 nearing its all-time high. Corporate earnings reports have been driving the markets, with 79% of quarterly reports from US companies exceeding expectations, according to Bloomberg. However, there are signs of weakness, such as the US consumer confidence index falling below expectations on Friday to its lowest level since last November. In Asia, Hong Kong’s main index reached a nine-month high today, while other major Asian markets were negative. China reported mixed data on the auto market, with weak domestic demand in April but a 38% increase in auto exports.
The Wall Street Journal reported the White House’s intention to raise tariffs on Chinese cars from 25% to 100%. As a result, Chinese automakers listed on Wall Street saw significant declines on Friday, with Nio, Xpeng, and Li Auto all dropping. The global stock markets are reacting to a combination of positive corporate earnings reports, economic data releases, and geopolitical tensions, which are contributing to both gains and losses. Investors are closely monitoring developments in the banking sector, the auto market, and the ongoing trade tensions between the US and China, as these factors continue to have a significant impact on market sentiment and performance. Overall, the stock markets are showing signs of resilience and volatility as they navigate through a complex and uncertain economic environment.
