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Stock exchanges, Europe cautious after the Fed. US economy in recession: GDP -0.9%

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Stock exchanges, Europe cautious after the Fed. US economy in recession: GDP -0.9%
Written by aquitodovale

(Il Sole 24 Ore Radiocor) – Piazza Affari stands out among the European stock exchanges in contrast with the new maxi hike in interest rates by the Federal Reserve. The markets are betting that the US central institution can now slow down the pace of monetary policy tightening, also in light of the decline in GDP in the second quarter and the entry of the US economy into recession, and are carefully evaluating the new wave of accounts. quarterly. On Wednesday, the Fed confirmed its commitment to bring inflation back to 2%, underlining that monetary policy will be updated at each summit and will also be assessed in light of the impact on the economy. The Milanese FTSE MIB scores the best performance of the day, towing the best quarterly results of the forecasts of Iveco Group, Stellantis and Stmicroelectronics. Moncler is also in evidence thanks to the better than expected balance sheet data.

US GDP down 0.9% in the second quarter

On the macro front, in the United States, GDP decreased in the second quarter of 2022 at the annualized rate of 0.9% compared to the previous three months, against estimates for a 0.3% increase. This is what emerges from the first reading released by the Commerce Department, after -1.6% of the final reading in the first quarter and + 6.9% recorded in the fourth quarter of 2021. Consumer spending, which represents 69% of the economy, increased by 1%, after + 1.8% in the first quarter.

Wall Street towards a bad start

The start of the session on Wall Street is expected to decline as investors look to earnings data from major blue-chip and tech companies. Tech giants Amazon and Apple will report quarterly earnings after the markets close. Prior to opening, Facebook’s parent company Meta Platforms fell 4.4% after posting its first earnings drop in its history. Qualcomm loses nearly 4% after muted sales prospects. Ford, which yesterday achieved revenues 50% higher than forecasts, drops by 1.7%.

FTSE Mib stock market trend

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As for Moncler, the better than expected results and the indications provided in the conference call push the stock to the top of the Ftse Mib. On Wednesday after the close of the markets, Moncler announced that it had closed the first half with a net profit of 211.3 million from 58.7 a year earlier thanks also to an extraordinary tax benefit of 92.3 million for the realignment of the value tax of the Stone Island brand. EBIT amounted to 180.2 million, with an incidence on revenues of 19.6%, compared to 92.82 million in the first half of 2021 and a margin of 14.9%. In the period, consolidated revenues amounted to 918.4 million, up 46% at constant exchange rates compared to the same period of 2021 and 62% compared to the first half of 2019. These numbers are “higher than forecasts”, explain the Equita analysts, who, however, have trimmed their 2022 and 2023 earnings estimates due to the uncertainty of the macro context. The conference call for the presentation of the half-year report also revealed that the Chinese market is continuing to grow and that there are currently no signs of a slowdown in demand.

Stellantis and Ivece rewarded by better than expected accounts

Quarterly effect also on Stellantis, which closed the first half with a net profit of 8 billion, up 34% compared to the same period of 2021, net revenues of 88 billion, up 17% compared to a year ago , thanks to strong net prices, vehicle mix and positive foreign exchange effects. Equita points out that Stellantis fared better than expected ┬źdespite the decline in volumes at group level, except for North America, thanks to the fact that the price / product mix and the favorable exchange rate effect more than offset the negative aspects ┬╗. Banca Akros experts also point out that Stellantis’ accounts show “very strong margins and free cash flow” and that they are above consensus.

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