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Stock market 16 July: Europe still down with luxury, in Milan eyes on managed savings

After Burberry's alarm comes that of Hugo Boss, while Richemont holds up despite the decline in Asia. European stock markets ignore Powell and Wall Street's records and are in the red

Stock market 16 July: Europe still down with luxury, in Milan eyes on managed savings

The weakness of the European stock exchanges despite irWall Street records and the Fed's long-awaited opening towards monetary easing. Last night, the president Jerome Powell speaking at the Economic Club of Washington, he said that “the latest three inflation readings increase confidence “that the objectives have been achieved and therefore a reduction in rates can be considered”. Powell then added: “Today we will not give any signal on any particular deadline,” but decisions “will be made on a meeting-by-meeting basis.” Words that galvanized the American market already on the rise afterwards the attack on Donald Trump which, according to analysts, could increase the chances of a Tycoon's return to the White House. In fact, the stock markets have already begun to price the effect of the avalanche of billions (around 3.800) that the Republicans intend to use to relaunch the market, not to mention Trump's greater openness towards cryptocurrencies which in yesterday's session made the market soar Bitcoin (today -2% to 63.441 dollars). 

Stock market July 16: Europe still down

In this context, European stock markets are trending downward, weighed down by the weakness of metal minerals after the drop in prices of copper (-0,29%) and above all from luxury. At the alarm raised yesterday by Burberry (yesterday -16%, today -4,1%) is added to the one arrived in the morning from Hugo Boss, which cut its sales forecast for the current year due to weakening global consumer demand, especially in markets such as China and the United Kingdom. It also weighs on the sector Richemont which indicated that it had suffered a slowdown in turnover in Asia. The Swiss group, however, limited the decline in overall turnover in the April-June period to 1% and was thus rewarded on the Zurich Stock Exchange with an increase of 0,44%.

On the stock market, the collapse of the French reinsurer is also worth mentioning score (-24,7%) which reaches its lowest level since December 2022 after cutting forecasts for its subsidiary Vita e Salute. The stock drags the insurance sub-index down by 1%. 

On the macroeconomic front, in Europe the Zew index which measures economic expectations for Germany, recorded a decline in the July survey for the first time since July 2023. At 41,8 points, it is 5,7 points lower than June's reading of 47,5. Estimates indicated a 41,2. In contrast, the assessment of the economic situation in Germany has improved slightly. The corresponding indicator increased by 4,9 points, reaching a new value of -68,9 points. In Italy, Istat confirmed the increase of 0,1%.'inflation in June on a monthly basis and 0,8% on an annual basis. Eyes are now turning towards the USA where data will arrive in the early afternoon retail sales of June and the quarterly reports of Bank of America and Morgan Stanley.

In this context it is Stoxx 600 it loses 0,38% of its value while the EU Parliament confirmed it Robert Metsol in the role of president. Paris (-0,73%) is still the worst stock market, weighed down by political uncertainty. Follows closely Madrid (-0,71%), while Frankfurt e Amsterdam contain the losses, respectively, at -0,4% and -0,17%. Outside the EU London it lost 0,27%. TO Wall Street futures are slightly higher, indicating a modest rise for US stocks.

Piazza Affari in decline with luxury

And Milan? At mid-day, Piazza Affari recorded -0,4% at 34.237 points. It is still the luxury that weighs heavily Brunello Cucinelli (-2,22%) And Moncler (-1,23%). Instead it rebounds (+1%) Ferragamo after the collapse the day before.

The titles in red also include Amplifon (-1,88%) And Iveco (-1,82%). Energy sales: Saipem (-1,46%), Tenaris (-1,20%), Erg ed Enel both at -1,16%.

The opposite is true for managed savings FinecoBank (+ 2,56%) and General Bank (+1,82%), which according to the rumors of Sun 24 Hours they would have attracted the interest of some private equity funds. The banks are also positive: Pop Sondrio (+ 0,86%), B for Bank (+ 0,78%), Bpm bank (+ 0,35%), Intesa Sanpaolo (+ 0,32%).

The other markets

On the currency, the exchange euro Dollar it is stable at 1,09 points with investors evaluating the probability that the Fed will start cutting rates. 

Prices are going down Petroleum, with Brent at 84,13 dollars per barrel (-0,8%) and WTI at 81,12 dollars per barrel (-0,9%). It rose by 1,2%. natural gas at 31,75 euros per megawatt hour.
On the bond it spread between BTP and Bund moves at 130 basis points, with the yield of the benchmark ten-year BTP falling to 3,73%, from 3,76% at yesterday's closing.

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