The main European stock exchanges start positively on Tuesday in a day in which, in the absence of other relevant references, it will be the quarterly results that will focus the attention of investors. Today the accounts of Axa, HelloFresh, Infineon, Vonovia, Ferrari, Telenor or Adecco are listed.
Thus, the Dax rises 0.20%; the FTSE 100, 0.74%; the Cac 40, 0.28% and the FTSE Mib, 1.19%. The Euro Stoxx 50 advanced 0.20%.
The advances take place after closing the session on the rise yesterday, led by the values of the automobile sector, by the utilities and by the companies of the insurance sector. On the contrary, it was the equity real estate companies and the securities of the technology sector that performed the worst.
The main reference of the day in these markets was the publication in the main economies of the euro area of the final readings for the month of April of the leading indices of activity in the manufacturing sector.
The Euro Zone Manufacturing Purchasing Managers Index, the manufacturing PMI produced by IHS Markit, rose in its final reading in April to 62.9 points from the 62.5 points in March, remaining, however, below the 63.3 points from its preliminary reading, which was expected by analysts. The end of April is the highest reading ever reached by the indicator
Spain’s manufacturing PMI rose in April to 57.7 points from 56.9 points in March. The reading was, however, below the 58.7 points expected by analysts, although the largest monthly increase in activity since December 1999 was recorded.
On the other hand, the German Federal Statistical Office, Destatis, published yesterday that retail sales grew in Germany in March by 7.7% compared to February in seasonally and calendar-adjusted terms. In addition, and in the interannual rate, retail sales rose in Germany by 11.0% in the month of March (-6.6% in February).
Yesterday on Wall Street, the main indices closed in a mixed way, with the Dow Jones and the S&P 500 higher, while the Nasdaq Composite did it lower, weighed down by the poor performance of technology stocks, especially semiconductors and those related to the Internet, as well as companies in the communication and consumer discretionary services sector.
Specifically, the Dow Jones rose 0.70%, with investors betting on the economic recovery at the beginning of May. The S&P 500 was up 0.27%; while the Nasdaq fell 0.48%.
The New York stock market opted for actions related to the return to normality after the covid-19 pandemic before the news that the states of New York, New Jersey and Connecticut will lift most of their capacity restrictions this month.
On the other hand, there were mixed data in terms of productive activity: the IHS Markit firm showed record growth in April, but the ISM index pointed to a slowdown, which puzzled the market.
The US manufacturing PMI rose in its final April reading to 60.5 points from 59.1 points in March. The reading was, however, slightly below the 60.6 points of its preliminary reading in the middle of the month, which was expected by analysts.
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For its part, this same index, but prepared by The Institute for Supply Management (ISM), the manufacturing ISM, fell in the month of April to 60.7 points from the 64.7 points in March, in turn remaining significantly below the 65.0 points expected by the consensus of analysts.
“Despite the general good performance of western stock markets, some doubts could be perceived among investors. Thus, and in the coming weeks, factors such as the expectations of the reopening of economies, based on the advancement of vaccination programs; the good “moment” of business results; the unconditional support of central banks; and the expansive fiscal policies of the different governments will continue to support equities, while others such as the high valuations that many listed companies present; excessive optimism on the part of investors; and the risk that the rise in inflation has a more structural nature than initially anticipated will act as a drag on it ”, indicate Link Securities analysts.
“It will be, therefore, investors who, after putting all these factors in a balance, will have to determine which of them should have a greater relevance in their investment decisions in the short / medium term,” add the same experts.
The euro gives way against the dollar and is exchanged at 1,203 greenbacks.
The vice president of the European Central Bank (ECB), from Guindos, said yesterday that the central bank could begin to phase out emergency stimulus measures when the pace of vaccination against the coronavirus reaches a critical level and the economy accelerates.
In addition, he noted that the normalization of monetary policy should go hand in hand with the normalization of the economy. In that sense, he warned against maintaining the central bank stimulus for too long, warning that the secondary effects could be as damaging as withdrawing support too soon.
On the other hand, de Guindos called on governments to remove subsidies only gradually, even if this puts a strain on budgets and further increases debt levels. In this regard, he pointed out that it will be crucial that these measures are withdrawn gradually and with great caution after the crisis. Otherwise, he said, you run the risk of stifling the recovery.
In the commodity market, oil prices pause. The benchmark Brent oil in Europe fell 0.09% to $ 67.50 per barrel, while the US West Texas fell 0.11% to $ 64.41.
The coronavirus figures worldwide already reach 153,193,587 positive cases and 3,210,123 deaths. Governor of New York: New York State will reopen on May 19.
The European Commission yesterday proposed that member states ease sanitary restrictions for non-essential travelers entering the European Union, based on the “progress of vaccination campaigns” and enable an “emergency brake” for new variants of the coronavirus.
The German Health Minister stated: “Those fully immunized will not need to quarantine to enter the country.” In addition, the Teutonic country has pointed out that its citizens fully vaccinated or those who have already passed the disease will be exempt from complying with many of the restrictions imposed by the pandemic, based on a new regulation that will be adopted this week.
UK Prime Minister Boris Johnson said: “On June 21 it is likely that if all goes well, most restrictive measures against the virus will be relaxed.” The Czech Republic aims to open registrations for the vaccine against the virus. COVID-19 to all people over the age of 16 by June 1, Prime Minister Andrej Babis reported.
In Spain, the number of infected rises to 3,540,430 and deaths reach 78,293. The Minister of Health, Carolina Darias, affirmed that the Government is working “intensely” hand in hand with the EU and the communities for the implementation of the digital green certificate, which will include data such as vaccination against the coronavirus, in order to facilitate mobility in the country this summer.