$RACE
Ferrari N.V.
PRICE
$187.94 -
Extented Hours
VOLUME
338,259
DAY RANGE
182.82 - 187.97
52 WEEK
167.45 - 276.92
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By Marc Jones
LONDON (Reuters) - European markets trimmed gains after the European Central Bank unveiled fresh measures on Wednesday to temper a market rout that has fanned fears of a new debt crisis before what is expected to be one of the sharpest U.S. rate hikes since 1994.
Hopes of a quiet run in to what is forecast to be a three-quarter-point hike by the Federal Reserve later on Wednesday were quickly dashed as the ECB's unexpected meeting - less than week after its last scheduled one - prompted a rush of activity.
The ECB said it would be flexible in reinvesting cash maturing from its recently-ended 1.7 trillion euro ($1.8 trillion) pandemic support scheme and would consider a fresh instrument to be devised by staff, disappointing some investors who were looking for bolder steps.
The euro which was up as much as 0.3% before the statement, trimmed gains and was marginally weaker on the day at $1.0407
Italy's 10-year bond yield, which stands to benefit the most from the ECB's plans, was last down 25 basis points on the day at 3.97%, above its session low of around 3.87%. Spanish and Portuguese 10-year yields also came off their day's lows but were still sharply down on the day..
"I think essentially it is the bare minimum of what could be expected, but I also believe it's the most realistic outcome of what they could compromise (on) today," said Piet Christiansen, chief analyst at Danske Bank in Copenhagen.
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INFLATION FEARS
The worries about rising borrowing costs and global inflation have been hammering financial markets all year.
World stocks are down over 20%, bond markets have been routed and fears that drastic Fed action could tip the world into recession means the U.S. central bank's moves later will be crucial for traders.
Treasury yields had hit decade highs overnight and the dollar a 20-year peak as futures implied it was near-certain the Fed would hike by 75 basis points to a range of 1.50-1.75%.
That would be the biggest increase since 1994, and markets already have rates reaching an eye-watering 3.75-4.0% by the end of the year.
"Against a backdrop of sky-high inflation, rising rates, and growing recession concerns, the S&P 500 has had its worst start to the year since 1962," analysts at Goldman Sachs (NYSE:GS) said.
"A likely coming peak in inflation is probably not sufficient to see the bottom..."
They recommended that investors reduce portfolio duration and increase exposure to real assets.
With so much priced in, a few brave investors, also buoyed by the ECB, were looking for bargains and S&P 500 futures were up 0.7%, while Nasdaq futures rose 0.75% and Dow futures added 0.4%.
MSCI's broadest index of Asia-Pacific shares outside Japan was closing almost flat, but is down sharply on the week.
Japan's Nikkei lost 1.1%, though sentiment was helped by a survey showing an improvement in confidence among Japanese manufacturers.
Chinese shares bucked the trend with a gain of 1.3%. Data on Chinese retail sales and industrial output for May were a little better than forecast, but still showed the drag from coronavirus lockdowns.
Authorities in Beijing said on Tuesday the city was in a "race against time" to get to grips with its most serious outbreak since the pandemic began.
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WHATEVER IT TAKES 2.0?
The ECB's move allowed bond markets everywhere to rally after their recent hammering, with German Bund yields swooping down to 1.67% and 10-year Treasury yields dropping to 3.37% from Tuesday's peak of 3.498%.
Two-year yields stood at 3.30%, after touching the highest since 2007 at 3.456% overnight. Given many U.S. borrowing rates are linked to yields, financial conditions have already tightened markedly there even before the Fed hikes.
ECB chief Christine Lagarde is due to speak in London at 1600 GMT. It is almost a decade since her predecessor Mario Draghi did the same at the height of the euro zone debt crisis.
"I think Lagarde will try to do 'whatever it takes' 2.0 tonight" Lorenzo Codogno founder of LC Macro Advisers, said describing the current situation as a perfect storm. "But the markets won't be happy if she comes empty-handed."
U.S. Treasury yields are the benchmark for bonds worldwide, so financial conditions are tightening pretty much everywhere. That is a major headwind for consumer spending power, while pressuring emerging market countries that borrow in dollars.
It has also tended to boost the U.S. dollar, which had hit a 20-year high against a basket of currencies before the ECB's news, led by big gains on the low-yielding Japanese yen.
The dollar flop in Europe left it trading at 134.5 yen, having reached heights last visited in 1998 at 135.60.
Those gains had come as the Bank of Japan ramped up its bond buying to keep yields near zero, even as much of the rest of the world tightens policy.
Still, the sheer pressure on the yen and bonds has stoked speculation the BOJ could be forced to amend its yield control policy at a meeting on Friday.
Surging yields, inflation and a sky-high dollar have been a burden for gold, which was near its lowest in a month at $1,826 an ounce. [GOL/]
Oil prices stumbled after the Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecast that world oil demand will exceed pre-pandemic levels in 2022. [O/R]
Brent was almost a dollar softer at $120.60, while U.S. crude dipped $1.23 cents to $117.70 per barrel.
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By Wayne Cole SYDNEY (Reuters) - Asian markets were in a pensive mood on Wednesday as shell-shocked investors waited to see just how aggressive the Federal Reserve would be on rates, with many fearing drastic action would risk tipping the world into recession. Treasury yields hit decade highs and the dollar a 20-year peak as futures implied it was near certain the Fed would hike by 75 basis points to a range of 1.50-1.75% later on Wednesday. That would be the biggest increase since 1994, and markets already have rates reaching an eye-watering 3.75-4.0% by the end of the year. "Against a backdrop of sky-high inflation, rising rates, and growing recession concerns, the S&P 500 has had its worst start to the year since 1962," noted analysts at Goldman Sachs (NYSE:GS). "A likely coming peak in inflation is probably not sufficient to see the bottom, and that similar past drawdowns have only ended when the Fed has shifted towards easier policy." That could be some time away so they recommend investors reduce portfolio duration and increase exposure to real assets. With so much priced in, a few brave investors were looking for bargains and S&P 500 futures edged up 0.2%, while Nasdaq futures rose 0.3%. EUROSTOXX 50 futures added 0.2% and FTSE futures 0.1%. MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.1%, but is down sharply on the week. Japan's Nikkei lost 1.0%, though sentiment was helped by a survey showing an improvement in confidence among Japanese manufacturers. Chinese shares bucked the trend with a gain of 2.4%. Data on Chinese retail sales and industrial output for May were a little better than forecast, but still showed the drag from coronavirus lockdowns. Authorities in Beijing warned on Tuesday that the city of 22 million was in a "race against time" to get to grips with its most serious outbreak since the pandemic began. DOLLAR HAS THE YIELD ADVANTAGE Bond markets tried to rally after their recent hammering, with 10-year Treasury yields dipping to 3.44% and away from Tuesday's peak of 3.498%. Two-year yields stood at 3.38%, after touching the highest since 2007 at 3.456% overnight. Given many U.S. borrowing rates are linked to yields, financial conditions have already tightened markedly there even before the Fed hikes. Treasury yields are also the benchmark for bonds across the globe, so financial conditions are tightening pretty much everywhere. That is a major headwind for consumer spending power, while pressuring emerging market countries that borrow in dollars. It has also tended to boost the U.S. dollar, which hit a 20-year high against a basket of currencies, led by big gains on the low-yielding Japanese yen. The dollar was trading at 135.07 yen, having reached heights last visited in 1998 at 135.60. The latest gains came as the Bank of Japan ramped up its bond buying to keep yields near zero, even as much of the rest of the world tightens policy. Still, the sheer pressure on the yen and bonds has stoked speculation the BOJ could be forced to amend its yield control policy at a meeting on Friday. The euro was holding on at $1.0425, not far from its May trough of $1.0348. The single currency has found some support from a hawkish turn by the European Central Bank, but is weighed by signs of stress in local bond markets. Yields for more indebted members, notably Italy, have climbed much more quickly than for Germany fanning worries about EU fragmentation. Surging yields and a sky-high dollar have been a burden for gold, which was near its lowest in a month at $1,814 an ounce. [GOL/] Oil prices edged up after the Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecast that world oil demand will exceed pre-pandemic levels in 2022. [O/R] Brent was 31 cents firmer at $121.48, while U.S. crude rose 30 cents to $119.23 per barrel.
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By Toby Sterling AMSTERDAM (Reuters) -ASML Holding NV, a key supplier to computer chip makers, reported on Wednesday first-quarter sales of 3.5 billion euros ($3.8 billion) and net income of 695 million euros, slightly ahead of expectations. Bookings remain strong as customers race to increase capacity amid a global semiconductor shortage, said ASML, which is Europe's largest technology company by market capitalisation, at 226 billion euros. "We are working very, very hard to navigate all the supply chain issues that everyone is dealing with," chief financial officer Roger Dassen said in a statement. The company forecast second quarter sales of 5.1-5.3 billion euros and left a forecast for full year sales growth of 20% unchanged. Net bookings in the quarter were 7 billion euros. ASML is the dominant maker of lithography systems, and its machines are used to create the circuitry of most computer chips. Analysts had forecast net income of 621 million euros on revenue of 3.44 billion, according to Refinitiv data. In January, ASML forecast first-quarter sales of 3.3-3.5 billion euros. [L1N2TZ0CK] Dassen said full year gross margins might be closer to 52%, rather than the 53% the company forecast in January, in part due to rising labour, transport, energy and cost increases. ASML, which expects to catch up with its current order backlog only sometime in 2024, is taking steps to cut delivery times and increase productivity of its tools, even as it tries to expand production. Not included in first quarter sales were equipment worth about 2 billion euros that customers asked to have shipped immediately, before it was fully tested. Those deliveries cannot yet be booked as sales, but ASML expects to recognise that revenue over the coming quarters. Dassen said the company had received "multiple" orders for its next generation "EUV High NA" machine, which is still being developed. For the first time, there were makers of memory chips among such clients, he added. ASML's biggest customers are TSMC, Samsung (KS:005930) and Intel (NASDAQ:INTC), though memory chip makers SK Hynix and Micron (NASDAQ:MU) and all major chipmakers are also customers. The company has forecast average annual sales growth of 11% through 2030 as part of a structural increase in chip demand. Shares closed at 561.60 euros on Tuesday, down 21% for the year to date, though more than double their price in April 2020. ($1=0.9246 euros)
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**@Benioff:** βFew companies advocate as publicly for pay equality as Salesforce which has assessed pay for all of its employees to make up for any gender or race gaps, spending millions of dollars since 2015 in an effort to close them.β Join us @salesforcejobs. https://t.co/kBkhWTUcAq https://twitter.com/Benioff/status/1514901924864274436
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Key Metrics
Market Cap
34.72 B
Beta
1.19
Avg. Volume
513.82 K
Shares Outstanding
184.75 M
Yield
0.72%
Public Float
0
Next Earnings Date
2022-08-02
Next Dividend Date
Company Information
CEO: Louis Camilleri
Website: http://corporate.ferrari.com/
HQ: Via Abetone Inferione N. 4 Maranello, 41053 Modena
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