Stock Market Today October 25: Europe Uncertain with Eyes on the Car After Tesla’s Exploit. In Milan Saipem, Eni and Unicredit in the Spotlight

Stock Market Today October 25: Europe Uncertain with Eyes on the Car After Tesla

Europe uncertain in the last session of the week, with attention focused on the numbers of Eni, Mercedes and Sanofi. Pending the judgment of the rating agency Dbrs, which will arrive in the evening, the Ftse Mib is traveling above parity, while the other stock exchanges are tinged with faded red: the worst is Paris, which loses 0,4%. Frankfurt and Madrid both mark -0,1%, while London + at -0,05% and Amsterdam at -0,2%.

Wall Street Mixed, Tesla’s Best Session Since May 2013

Contrasted closure last night for the American Stock Exchange, with the Dow Jones which recorded its fourth consecutive session of decline (-0,31%), while the S & P 500 managed to gain a plus 0,22%, which puts an end to the series of declines. Very different dynamics on the nasdaq, which closed up 0,76%, driven by the new exploit of Tesla which achieved its best session in the last decade (+22%), wiping out with a stroke the losses of the last six weeks thanks to the third quarter results published on Wednesday, but above all thanks to the expected increase in sales in the order of 20-30% promised by Elon Musk thanks to the drop in prices. In a single session, the market capitalization rose by over 150 billion, while Elon Musk’s wealth grew by 33,5 billion bringing the total to 270,3 billion, a good 61 more than that of Amazon founder Jeff Bezos. According to Ed Egilinsky, managing director of the investment company Direxion, the reason for the surge would also be some coverings.

Also under observation on Wall Street Boeing (-1%), while the strike continues and the rating agencies are focusing on the stock. Also noteworthy is the collapse of IBM which closed the session down more than 6% after a quarterly report that disappointed analysts.

On the currency, with the’EUR tries to stay above the 1,08 level against the dollar, while the markets continue to wonder what the next move will be from the number one of the Fed Jerome Powell in view of the new FOMC meeting which will convene on November 6-7, the day after the US presidential elections.

Two-Faced Asia: Down with Tokyo, Up with China

La Tokyo Stock Exchange closed lower in the last session of the week, with investors looking with uncertainty at the outcome of the elections in Japan scheduled for this Sunday. The Nikkei recorded a decline of 0,6%. Positive instead the Chinese stock markets, with Shanghai and Shenzhen which rose 0,6% and 1,5% respectively after the People’s Bank of China (PBOC) left its one-year medium-term lending rate unchanged at a record low of 2%.

Stock Market Today October 25: Europe Uncertain After IMF Alert

Without a direction, European stock markets are opting for caution after the annual meeting of the International Monetary Fund In Washington, managing director Kristalina Georgieva warned that the world economy risks being stuck, due to slow growth and high debt. According to the IMF, moreover, the European economy risks lagging behind the US one. The IMF’s call is also for Italy, which should “be more ambitious” in measures to reduce the high public debt.

In Europe, the accounting season continues today with Eni, Sanofi and especially Mercedes, with investors continuing to keep an eye on the health of the continental car market. Government bond yields are also moving in a cautious direction, with that of US Treasury 10 years drops to 4,17% and that of Btp 10 years is at 3,47%. 

In the evening, after the verdicts of Fitch and S&P Global, the Dbrs’s opinion on Italy’s rating, currently at BBB (high) with a stable outlook, as well as that of S&P on the rating of Belgium and of Moody’s on the rating of France, currently at Aa2 with a stable outlook after Fitch cut the outlook to negative approximately two weeks ago.

Eni’s accounts

After sale of 25% of Enilive to Kkr, Eni (+0,65%) has lifted the veil on its third quarter and nine-month results, closed with results down due to a “weaker operating environment” but underlines the “resilience of financial results” which “reflects the solidity of the business model”. In the third quarter the group recorded an adjusted pro forma operating profit of 3,4 billion (-14%), an adjusted net profit of 1,27 billion (-30%) and a net profit of 522 million. In the 9 months, operating profit stood at 11,62 billion, adjusted net profit at 4,372 billion and net profit at 2,394 billion. Hydrocarbon production in the third quarter increased by 2% to 1,661 million boe per day and in the 9 months it grew by 4% to 1,704 million. For 2024 Eni confirmed the annual hydrocarbon production target expected at around 1,70 million boe/d and revised upwards the GGP result with the expected EBIT at 1,1 billion. Considering that the divestment plan is progressing better than initial expectations, Eni has increased the 2024 buyback plan, which is now expected to be 2 billion of euros, +25% compared to the previous guidance of 1,6 billion and +80% compared to the original annual plan. This will increase the total cash return to shareholders to approximately 38% of operating cash flow. The expectations for the consolidated group results, net of the scenario effects that are revised downwards, and the investment forecast were reconfirmed. CEO Claudio Descalzi highlighted the “solid business model” and “competitive remuneration to shareholders”.

Piazza Affari: the other stocks in the spotlight

Saipem continues to lead the way at Piazza Affari (+3,65%) after the strong acceleration recorded in the third quarter. 

At Piazza Affari the spotlight is still on the operation Unicredit (+0,75%) after Mf-Milano Finanza revealed that the Italian bank has hedged the risk of its stake in Commerz. According to rumors, the institute would have called the American merchant Jefferies to insure the share from possible market fluctuations, using financial instruments that mitigate the risk of price drops.

The title is positive Bpm bank after S&P upgraded its rating by one notch to BBB/A-2 and indicated its expectation that Banco Bpm’s strong presence in the richest areas of Northern Italy and its well-diversified business model will support the stability of the business in the coming years. In the banking sector, it also rose Ps, which advances by about half a percentage point. 

Minus sign instead for Campari (-1,29%), Moncler (-0,85%), Hera (-0,77%) And stellantis (-0,6%).

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Publish date : 2024-10-25 01:19:00

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