Tech in orbit – -

Tech in orbit – -
Tech in orbit – -

While oil is yo-yoing, bond yields are waking up and metals are hitting the ceiling, the stock markets refuse to go down. However, they would need some new arguments to try to keep up with the Nasdaq rocket. This is roughly the atmosphere at the start of the week ahead of the publication of you know who. Today, investors have a meeting with an army of central bankers, who will perhaps try to temper the enthusiasm of financiers.

If you left the screens during Pentecost Monday, you will probably need a quick refresher on financial news. The European markets remain well oriented and ended again yesterday within narrow limits, as has been the case for several sessions. The gains remain modest, with the exception of the 1.15% rise in the Swedish OMX and the 1.62% fall in the FTSE MIB in Milan. The Italian index took a big hit which did not go unnoticed. In the game of a posteriori explanations, the MIB has not really broken its figure going against the general trend, since this bad patch can be explained by the detachment of copious dividends from its banking and financial components, which weigh heavily in the Italian index. On the other side of the Atlantic, the Nasdaq continues its trajectory towards the stars. +0.69% for the Nasdaq 100, +0.09% for the S&P500 and -0.49% for the Dow Jones, these scores speak for themselves: the traction of technological stocks and more particularly those linked to artificial intelligence does not weaken.

In this context, financiers are not listening attentively to the calls for caution from certain central bankers, many of whom will be giving speeches this week, particularly today. In the United States, bankers from the monetary policy committee were out yesterday and all delivered an almost identical message: it is too early! Not too early to write this editorial (although) but too early to be very certain that inflation is heading without fail towards the 2% target. Thus, the president of the Atlanta Fed, Raphael Bostic, indicated that it will take more time to validate that inflation is indeed returning to 2% while his colleague Michael Barr said he was disappointed with the inflation data in recent months. But that doesn’t seem to disturb the stock markets, which are still banking on a first rate cut in September.

Other assets in good shape include metals, led by gold and copper, which have reached new zeniths. In the same way as stocks, these two assets benefit from central banks’ expectations of rate cuts, with a little extra: the central banks’ appetite for gold, which represents an excellent way to diversify their foreign exchange reserves. and the growth in demand for copper, an essential metal for the energy transition. In terms of prices, an ounce of gold reached the line of 2,450 USD, while a tonne of copper exceeded the threshold of 11,000 USD in London, bringing its gains to 27% since 1er January. And while I’m at it, I’ll also mention bitcoin, which is once again rising above 70,000 USD.

The company results are less dense than in previous weeks, but there are still a few large capitalizations, including Lowe’s Companies, AutoZone in the United States and Generali in Europe. Concerning macro and as highlighted previously, the session will be animated by a large number of speeches from central bankers. Christine Lagarde will occupy the field in the morning, before a legion of central bankers from the Fed in the afternoon and a speech by the boss of the Bank of England, Andrew Bailey, at the end of the day.

In Asia Pacific, the indices put their foot on the brake. The Hang Seng, which has soared by 20% in four weeks, is losing around 2% this morning. Seoul contracts by 0.76%, Bombay hesitates around balance while Japan returns 0.31%. European leading indicators are bearish.

Today’s economic highlights

Very light program with the trade balance in the euro zone which is on the agenda at 11:00 a.m. All the agenda here.

L’euro falls to 1.086 USD. The ounce of gold catches its breath at 2415 USD. Oil is falling, with a Brent from the North Sea at 83.15 USD per barrel and a light American crude WTI at $78.75. The performance of the American debt over 10 years reaches 4.447%. THE bitcoin soars again to reach 71,000 USD.

The main changes in recommendations

  • Ascential: HSBC maintains its hold recommendation with a price target raised from 3.27 to 3.70 GBP.
  • Avanza Bank Holding: Citi goes from neutral to buy with a price target raised from 250 SEK to 320 SEK.
  • Banca Monte Dei Paschi Di Siena: Citigroup remains neutral with a price target raised from 4 to 5.30 EUR.
  • Banco De Sabadell: Deutsche Bank maintains its buy recommendation with a price target raised from 1.70 to 2 EUR.
  • Banco Santander: Deutsche Bank maintains its buy recommendation with a price target raised from 4.85 to 5.45 EUR.
  • Bbva: Deutsche Bank maintains its buy recommendation and raises the price target from 10.85 to 11.40 EUR.
  • Beiersdorf: Bernstein maintains its market performance recommendation with a price target raised from 130 to 135 EUR.
  • Bper Banca: Citigroup maintains its purchase recommendation with a price target raised from 4 to 5.65 EUR.
  • Burberry Group: Barclays maintains its market weighting recommendation with a price target reduced from GBP 13.40 to GBP 10.90.
  • Buzzi: Morgan Stanley maintains its market weighting recommendation and raises the price target from 34.70 to 37.20 EUR.
  • Caixabank: Deutsche Bank maintains its recommendation to hold with a price target raised from 5 EUR to 5.10 EUR.
  • Carmila: Citi goes from sell to buy with a price target raised from 11 EUR to 19 EUR.
  • Commerzbank: Morgan Stanley maintains its overweight recommendation and raises the price target from 17 to 20 EUR.
  • Compagnie Financiere Richemont: Stifel maintains its buy recommendation with a price target raised from 144 to 160 CHF.
  • Danone: Bernstein maintains its underperformance recommendation with a price target raised from 50 to 55 EUR.
  • Dell Technologies: Barclays maintains its recommendation to underweight with a price target raised from 94 to 98 USD.
  • Demant A/S: Jefferies remains underperforming with a price target reduced from 305 to 275 DKK.
  • Experian: Morgan Stanley maintains its overweight recommendation and raises the price target from 3500 to 4100 GBX.
  • Fortum: Bernstein maintains its outperformance recommendation and reduces the price target from 18 EUR to 16.50 EUR.
  • Grand City Properties: Goldman Sachs maintains its neutral recommendation with a price target raised from 11.20 to 11.60 EUR.
  • Grifols: Deutsche Bank maintains its sell recommendation with a price target raised from 7 to 8 EUR.
  • Heidelberg Materials: Morgan Stanley maintains its overweight recommendation and raises the price target from 100 to 101 EUR.
  • Helios Towers: Barclays maintains its market weighting recommendation with a price target raised from GBP 1 to GBP 1.10.
  • Henkel Ag & Co. Kgaa: Bernstein improves its recommendation from underperformance to market performance with a price target raised from 61 EUR to 80 EUR.
  • HP Inc: Barclays improves its recommendation to underweight to market weight with a price target raised from 24 USD to 30 USD.
  • Imperial Brands: Morgan Stanley maintains its market weighting recommendation and raises the price target from 1925 to 2000 GBX.
  • Inmobiliaria Colonial Socimi: Goldman Sachs maintains its neutral recommendation with a price target raised from 5.90 to 6.40 EUR.
  • Jpmorgan Chase & Co.: Morgan Stanley maintains its overweight recommendation and reduces the price target from 216 to 214 USD.
  • L’Oréal: Bernstein maintains its outperformance recommendation and raises the price target from 480 to 490 EUR.
  • Lindt: Bernstein maintains its outperform recommendation and raises the price target from CHF 110,000 to CHF 115,000.
  • Neste Oyj: BNP Paribas Exane maintains its neutral recommendation with a price target reduced from 24 to 21 EUR.
  • Orkla Asa: Bernstein improves its recommendation from underperformance to market performance with a price target raised from NOK 74 to NOK 84.
  • Palo Alto Networks, Inc.: Bernstein maintains its Outperform recommendation and raises the price target from USD 335 to USD 364.
  • Pirelli & CSpa: Morgan Stanley maintains its overweight recommendation and raises the price target from 6.10 to 6.60 EUR.
  • Prosus: HSBC maintains its purchase recommendation with a price target raised from 39 to 46 EUR.
  • Ryanair Holdings: UBS maintains its buy recommendation and raises the price target from 22.50 to 23.50 EUR.
  • Scor Se: BNP Paribas Exane maintains its outperformance recommendation and reduces the price target from 35 to 34 EUR.
  • Sinch Ab: Morgan Stanley maintains its recommendation to underweight with a price target reduced from 26 to 23.50 SEK.
  • Sonova Holding: Jefferies goes from buy to hold with a price target raised from 290 CHF to 300 CHF.
  • Tui Ag: AlphaValue/Baader Europe maintains its accumulate recommendation and reduces the price target from 8.29 to 8.22 EUR.
  • Unilever Plc: Bernstein maintains its market performance recommendation and raises the price target from 3600 to 3900 GBX.
  • Wise Plc: Barclays overweight from market weight to overweight with price target raised from GBP 8 to GBP 10.
  • Zoom Video Communications: Goldman Sachs maintains its neutral recommendation with a reduced price target of 73 to 70 USD.

In France

Important (and not so important) announcements

  • Sanofi obtains encouraging new clinical results in COPD. Furthermore, the pharmaceutical group collaborates with the Americans Formation Bio and OpenAI in AI.
  • TotalEnergies launches the Kaminho deepwater project in Angola.
  • Saudi Arabia in talks with Airbus and others for metals and facilities contracts according to Bloomberg.
  • Rubis’ supervisory board supports Sämann’s appointment but rejects Molis’ resolutions.
  • The European Central Bank holds 20% of Atos’ bonds, according to La Lettre.
  • Valneva appoints a new scientific director.
  • Freelance.com’s turnover increased by 24% in Q1.

In the world

Important (and not so important) announcements

  • Microsoft is integrating generative AI directly into PCs.
  • Trump Media & Technology lost $327 million in the first quarter.
  • Korean Air Lines and Amazon Web Services are building an AI contact center platform.
  • Generali’s first quarter results beat estimates.
  • Idorsia reports a smaller loss in the first quarter.
  • Roche obtains therapeutic breakthrough from the FDA for inavolisib.
  • The shareholder from Anglo American, LGIM, expresses support for demerger plan as BHP bid deadline approaches.
  • BMW imported cars containing parts from a banned Chinese supplier, according to a US Senate report.
  • Rio Tinto declares force majeure on alumina exports from some Australian refineries due to gas restriction.
  • Spain completes purchase of 10% stake in Telefonica.
  • Cevian becomes the new main shareholder of Bâloise Holding.
  • Avolta lands 15-year contracts at John Wayne Airport, near Los Angeles.
  • InDex Pharmaceuticals buys Flerie Invest as part of a merger plan.
  • BW Energy announces substantial oil discovery in Gabon.
  • Recordati acquires own shares for 3.8 million euros.
  • Nintendo buys Shiver Entertainment.
  • Samsung Electronics has replaced the head of its semiconductor division.

Main publications of the day: Lowe’s Companies, AutoZone, Generali The whole agenda here.

Readings and videos

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