Stock exchanges, Europe restarts from US GDP and Tesla. Milan at the top for a year

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(Il Sole 24 Ore Radiocor) – The American data in the afternoon – with GDP and subsidies better than expected accompanied by slowing PCE inflation – maintained optimism on the stock market and prompted the European indices to update their one-year highs before the central banks’ key week in which the Fed, the ECB and the BoE are expected to act on interest rates. On the quarterly front it also had a positive effect Tesla with +10% in Wall Street followed by the accounts above expectations. The European stock exchanges therefore all closed in clear increases with Milan as leader (FTSE MIB above 26 thousand points) supported by the performance of St after the accounts and by the good intonation of the banking sector . Overall in Europe, retailers and financials were among the best performers. According to Edward Moya of Oanda, if the American GDP trend wards off the risks of an imminent recession, it nevertheless leaves room for the Federal Reserve to make new increases in interest rates: on this front, operators are waiting for the publication of the PCE deflator tomorrow, while from other central institutions (Canada and South Africa) the first signs of a pause for restrictive monetary policies have arrived. According to Daniel Vernazza of Unicredit it is unlikely that the US GDP report will change the attitude of the Fed while it will be read as a confirmation of the slowdown in growth which will be followed by a further slowdown in the demand for labour.

After a brilliant start, the Wall Street indexes slowed down and only the NASDAQ COMP remained in a clear positive direction.

Usa: from GDP to inflation and work, set of results above forecasts

US gross domestic product increased at an annualized rate of 2.9% in the fourth quarter of 2022 compared to the previous three months, after +3.2% in the third quarter. This is what emerges from the preliminary reading of the data, just published by the Department of Commerce; expectations were for a rise of 2.8%. Consumer spending, which accounts for 69% of the US economy, increased by 2.1%, after +2.3% in the third quarter; in the second quarter, recorded a +2%. In 2022, GDP increased by 2.1%, after +5.9% in 2021. The PCE data on inflation increased by 3.2% in the fourth quarter of 2022, based on the preliminary reading of the US GDP, after +4.8% in the third quarter. In the second quarter, recorded a +7.3%. The ‘core’ data, the one without energy and food product prices, increased by 3.9%, in line with expectations, after 4.7% in the third quarter. In the United States, the number of workers for the first time they filed for unemployment benefits, in the week ending Jan. 21, it decreased by 6,000 to 186,000 (seasonally adjusted), the Labor Department reported; expectations were for a figure at 205,000. The previous week’s figure was revised from 190,000 to 192,000.

Tesla up sharply thanks to quarterly accounts

The title of Tesla it has come to earn more than 10% and is the best on the Nasdaq, after the quarterly published yesterday, which showed record revenues and profits above expectations for the electric car company. It reported a profit of nearly $3.7 billion, up 59% from a year earlier but slightly below estimates of $3.8 billion. Adjusted earnings per share were $1.19, versus $1.13 consensus consensus, on revenues of $24.32 billion, ahead of $24.16 billion expectations and up 37% from expectations. a year earlier. In the same quarter of 2021, it had revenues of $17.72 billion and adjusted earnings per share of $2.52.

Will the Fed follow the Canadian central bank?

On the subject of interest rates, a signal for investors came on Wednesday 25th from the Canadian Central Bank which was the first among the developed ones to indicate a pause in the rate hike cycle (last week it was the turn of the Australian one). In fact, the Institute increased the reference rate by 25 basis points to 4.5%), signaling its intention not to proceed with further monetary tightening to evaluate the effects on inflation of the measures already undertaken. “Naturally, traders tried to read the Bank of Canada’s decision as a preview of what the Fed could do at its March meeting,” commented the analysts of MPS Capital Services. “Therefore, the difference of views continues between the market which sees the glass as half empty (inflation in a clear and decisive deceleration and the economy slowing down) and prices a Fed break and the US central bank which instead sees the glass as half full (inflation still high with tonic economy) – say the analysts of Mps Capital Services – difference of views which will find an initial clarification with next week’s meeting (where +25 basis points of upside are discounted)”