MILAN – Chinese consumption data for the Lunar New Year exceeded expectations and returned to pre-coronavirus levels. Around $87.9 billion was spent on entertainment, catering and travel, an increase of 47.3% on an annual basis and 7.7% compared to 2019, the last reference year before Covid-19. Caution from observers: “While we see some strength in the data, we urge market participants to exercise caution,” Nomura analysts wrote in a note to clients, noting that the numbers reflect pent-up consumer demand, as this is the first Lunar New Year that is not affected by pandemic-related factors. However, analysts at Goldman Sachs noted that the “slightly longer than usual” holiday season this year “contributed to record passenger flows between regions and encouraged more long-haul travel.” But Nomura itself noted that despite higher overall costs, the average cost of each trip has fallen. In short: numbers that should be treated with caution. In the end, Asian indices ended mixed.
Milan were slightly behind at half-time
At the halfway point of the session, the stock market continued to fall slightly, with an uneventful performance on a day that lacked the Wall Street benchmark and was closed for a holiday. The Ftse Mib index is trading -0.26% at 31,650 points. Piazza Affari appears cautious as European stock market developments do not follow any particular order. In the interest and macro area, the price lists are waiting for some new elements that will serve as a guide for the forecasts. Tomorrow the ECB will publish data on wage negotiations, which is important for the possible impact on future monetary policy decisions.
The EU stock markets are progressing without any particular insights, Wall Street remains closed
The stock markets of the Old Continent remain without major changes on a day when Wall Street is closed for Presidents Day. The best stock market is that of Madrid, which gains 0.2%, while London hovers around parity while Paris loses 0.2%. Frankfurt and Milan fell 0.3%.
Asian stock markets close mixed
Asian stock exchanges close in no particular order Shanghai Composite rose 1.6% to a three-week high of 2,911 points on the first trading day after the New Year’s break; also good Shenzhen This rises by 0.93% to 8,902 points and thus accelerates compared to the beginning of February. Investors welcomed data showing China’s tourism revenue rose about 47% over the holidays, while the People’s Bank of China left its medium-term lending rate unchanged at 2.5% yesterday. Instead, negative Hong Kong, despite gains in mainland China, with the Hang Seng slipping 1.13% to 16,155.61 points, retreating from its six-week peak last week on sharp losses in the technology and real estate sectors. Counter Tokyo The Nikkei fell 0.08% to 38,470.38 points and the Topix rose 0.57% to 2,640 points, with investors cautious as the possibility of early interest rate cuts faded globally.
Tim is rewarded by the stock market according to the balance sheet
The purchase from Tim, which rose by 2.73% to 0.28 euros per share on Piazza Affari, firmly established itself at the top of the list, which is developing weakly. The stock is supported by advertising from BofA, which raised its rating from “Neutral” to “Buy” after the quarterly report. Specifically, the price target was increased from 0.33 euros to 0.40 euros, +21%. The potential upside identified by the American broker is over +40%.
The EU stock markets have a mixed start
European stock markets open the week in no particular order, with Madrid bucking the positive trend as investors prepare for a week of macro data – from euro zone PMIs and final inflation data – in addition to the quarterly minutes, the Fed and the ECB is waiting for the semiconductor giant Nvidia. In early trading in London, the Ftse 100 index lost 0.09% to 7,704.75 points, in Frankfurt the Dax lost 0.31% to 17,064 points, in Paris the Cac40 lost 0.34% to 7,742 points, while in Madrid the Ibex35 rose by 0.28% to 9,915.50 points. At Piazza Affari, the Ftse Mib index is trading at -0.16% at 31,682.14 points.
Asia positive according to Chinese data
Stock markets in Asia and the Pacific trended higher, with Chinese stock markets, which reopened after the long local Lunar New Year holiday weekend, posting significant gains. In fact, Shanghai rose 1.4% and Shenzhen 1.5%, while Hong Kong was weak (-0.7%), but it is a stock market that remained open for consumption in the region at this crucial time . Seoul is up 1.1%, Tokyo is stagnating and is also paying for Nintendo’s decline (-5%). Bloomberg explains how the company will delay the launch of the console that will replace a hugely successful product like the Switch. With Wall Street closed today for Presidents Day, the future prospects for the start of European markets are uncertain.
The euro opens slightly higher
The euro rose slightly against the dollar at the start of the day. The common currency is trading at $1.0785, up 0.12%. The Euro is also slightly positive against the Yen at 161.78, up 0.05%, while the Dollar/Yen is at 149.97, down -0.15% for the US currency.
Tokyo closes with little movement
The Tokyo Stock Exchange ended the first session of the week little changed, with selling focused on technology and after U.S. inflation data that reduced the possibility of a Fed rate cut. The Nikkei benchmark exchange closes at 38,470.38 (-0.04%). remains at its highest level in 34 years. On the exchange rate side, the yen is appreciating slightly against the dollar, just under 150, and against the euro at 161.70.
Goldman Sachs expects Wall Street to continue to grow
Goldman Sachs forecasts new growth for Wall Street as strong corporate results are expected. According to Bloomberg’s reconstructions, the investment bank expects the S&P500 index to reach 5,200 points, an implied growth of 3.9% compared to last week’s closing prices. An achievable level thanks to “stronger economic growth” than expected and “higher profits”, especially for the IT and communications services sector, to which five of the so-called “Magnificent Seven” refer.
China’s central bank keeps interest rates the same
China’s central bank (PBOC) left the medium-term lending rate (MLF) unchanged at 2.50% amid uncertainty over the timing of easing by the Federal Reserve, limiting room for monetary policy maneuvers. Indeed, Beijing is struggling with efforts to support the economy at a time when signs of persistent deflationary pressures require further stimulus measures.
