Le European stock exchanges toast to the rhetoric of Jerome Powell and the maxi rate cut of 50 basis points decided yesterday by Federal Reserve, an indication that could also give greater courage to the European Central Bank on future occasions, should the data allow it.
Overseas the indications are clear Wall Street, that moves at record levels, enjoying a soft landing for the economy, especially since last week initial claims for unemployment benefits fell (-12 thousand) to 219 thousand versus expectations of 230 thousand.
Piazza Affari gains 1,16% and is back above the psychological threshold of 34 thousand basis points (34.044). Among the blue chips bounces Campari, +9,54%, while defensive stocks such as utilities retreat and banks are mixed. Outside the Ftse Mib, former Mediaset stocks close a session to frame, mfa (+ 14,08%) and Mfb (+15,24%), after the half-yearly accounts and the indications on the collection for the 9 months, better than expected.
Throughout Europe it is luxury is on the rise again, in Milan Fashion Week and in the belief that monetary easing will favor the recovery of consumption.
The best square is like this Paris +2,29%, helped by the performance of big name stocks.
Progress is robust at Amsterdam, +1,77%, in the wake of the more rate-sensitive American big tech companies.
Bene Frankfurt +1,55% and Madrid + 0,8%.
Also London appreciates by 0,94%, despite a strong pound with the BoE decided to keep rates on hold interest rate at 5%, despite the choices of US colleagues.
In New York, at the time when the European stock markets are closing, the DJ 1% rise, it S & P 500 marks +1,67%, the Nasdaq +2,72%. Even the Russell appreciates himself of 1,73%, thinking that a lower cost of money will favor those who need it most, such as medium-sized companies. Among the stocks, the shares of giants such as Microsoft, Apple, Nvidia are pushing on the accelerator.
Gold and oil shine
The Fed chairman Jerome Powell chose the most aggressive move and at the same time reassured the markets: it is not a question of dealing with an economic emergency, but of recalibrating the situation. From the dot-plot graph, that is, from the pressures of the individual components of the Fomc (the monetary arm of the Fed) it appears that the central bank expects a cut of another half a point this year, one point in 2025, half a point in 2026. However, futures indicate about 70 basis points this year and about 200 points by September 2025. For Bofa it will reach 75 basis points by the end of the year, arguing that the emphasis placed on trying to anticipate any weakness in the labor market could push the Fed "to deeper cuts".
In Europe the number one of the Bank of Italy Fabio Panetta believes that the ECB, after the decision in recent days to reduce rates by 0,25 points, “could accelerate in the months”The governor believes that the "indicators of persistent weakness in the European economy" and the signal from the United States are pointing in this direction.
In this context theeuro-dollar is currently little moved at 1,113.
They are Oil futures tonic (+1,5% approximately), also supported by the situation in the Middle East, although concerns about Chinese demand remain.
Texas crude is trading at $71,15 a barrel, while North Sea oil is up at $74,84 a barrel.
But continue to even gold shines, which updates its historical highs, because there are still those who believe that it is better to protect oneself: spot gold is growing by almost 1% to 2584,19 dollars an ounce (after a new high at 2594,90)) and the December futures at 2609,4 dollars.
Piazza Affari toasts with Campari, Cucinelli, Prysmian
Never before has it been worth saying that Piazza Affari “toasts” with CampariThe stock of the beverage company is rising again after having fallen yesterday following the surprise resignation of the CEOThe decision to favour the recovery was Lagfin, a Luxembourg-based holding company through which the Garavoglia family controls the group, to purchase up to 100 million ordinary shares of the company, believing that "the current market price of Campari ordinary shares does not faithfully reflect the real value of the Group".
cucinelli, +4,53% is among the best blue chips of the day in a luxury sector that is once again making headway in Milan. Moncler gains 1,97% and Ferragamo marks +3,68%.
The worsening of war scenarios and the increased investments in weapons by governments are favouring the progress of Leonardo + 3,62%.
The industry is also doing well with Prysmian + 3,96% Ferrari + 3,79% Interpump + 3,5% Iveco + 3,1% Pirelli + 2,17%.
Earns a spot in the top ten too stm + 3,52%.
Among the oil stocks it still shines Saipem, +3,78% after yesterday's news of a new offshore contract worth approximately $XNUMX billion with Saudi Aramco.
La black shirt of the day goes to Inwit -2,17%, followed by Terna -1,98%, Hera -1,96%, Erg -1,95%, Snam -1,84%.
Le banks are opposed: Banco Bpm loses 0,81%, while Popolare di Sondrio rises by 1,91%. Good Banca Mediolanum, + 1,63%, after the ruling of the European Court of Justice which brings Fininvest back into full possession of the voting rights.
Unicredit rises by 1,24%. Today, CEO Andrea Orcel confirmed that the bank “for the moment” intends to remain at the current 9% but will ask the ECB for authorization to increase to 29,9% “to have the possibility” for the dialogue to continue. In an interview with Il Messaggero, he instead ruled out a takeover bid: “it would be an aggressive act”.
Bonds in celebration
The bond market is also taking part in today's celebration: spread between BTP and Bund, both with a ten-year duration, falls to 132 basis points. Rates also fall, to 3,48% and 2,16% respectively.
