European stock exchanges down for the fifth consecutive session ahead of crucial US employment data that will determine the amount of the Federal Reserve's rate cut scheduled for September 18. Also weighing on continental markets is the industrial production declines in Germany which fell by 2,4% in July, much more than the -0,3% expected by analysts.
Stock Market: Europe Down, Wall Street Futures Sharply Lower
In this context Frankfurt drops 0,48%, while Paris is down 0,23% after the Michel Barnier appointed as Prime Minister. Down too Madrid (-0,35%), e Amsterdam (-0,5%); outside the EU London marks -0,4%.
Business Square traveled all morning in negative territory along with the rest of Europe. After a drop of almost 1%, at mid-day the Ftse Mib lost 0,47% to 33.525 points.
Across the ocean Wall Street Index Futures are sharply lower ahead of the monthly nonfarm payrolls data, seen as crucial to the Fed's upcoming rate decisions, after a series of disappointing macro indicators fueled concerns about the global economic outlook. The data due today will determine the future moves of the U.S. central bank, which is called upon to decide whether to cut rates by 0,25% or 0,50%. In recent weeks, traders have begun to see a 50 basis point cut as more likely, an eventuality that the market currently assigns a 41% chance of happening but that could become even more credible if the U.S. labor market data comes out lower than expected.
Banks under pressure across Europe
In Europe, but also on Piazza Affari, the declines are being led by banks, under pressure across the continent, while the market is weighing up the possibility of a faster-than-expected easing of monetary policy and the fallout from efforts to reduce exposure to Moscow. On the Russian front, a court has frozen the shares of the Austrian Raiffeisen Bank International (-5,7% in Vienna) in the local subsidiary, effectively preventing its sale. Raiffeisen has already announced that it will appeal the judge's decision, which represents the largest asset freeze to date in the tug-of-war between Moscow and the West.
In Milan, sales are crashing down Bper (-1,93%), Ps (-1,9%), Bpm bank e Pop Sondrio, both in the red by 1,4%. Also bad Intesa Sanpaolo (-1,3%) And Unicredit (-0,66%) which recently asked the European Court of Justice for clarifications on the modalities of exit from Russia precisely to avoid expropriations by Moscow.
In the rest of Europe, BNP Paribas loses 1,5% in Paris, Barclays 2% in London and Caixabank 1,5% in Madrid.
Defensive stocks rise in Milan
In Milan, purchases reward defensive stocks. Utilities are at the top of the list, with Hera (+ 1,6%), A2a (+1,3%) ed Enel (+ 0,57%).
Italgas, which is giving up almost 1%, seems little sensitive to the rumours indicating a 1 billion capital increase as part of the operation for the possible acquisition of 2i Rete Gas.
After the sharp declines recorded yesterday by global luxury due to concerns about Chinese demand, Moncler rises slightly (+0,5%).
Sales on Saipem (-1,5%), after the extension of production cuts by eight OPEC+ members to the end of November was not enough to dispel doubts about the weakness of crude oil demand.
Outside the Ftse Mib, it's heavy Prisms (-6,5%) which announced a recapitalization to cover excess losses.
