European stock markets closed sharply lower today, after an attempted recovery at mid-day, which quickly foundered in line with Wall Street. Today's volatility was induced by the long-awaited August Nonfarm Employment Report In the United States, this is the last weight report before the meeting of the Fed of September 18. The numbers are lower than expected and this lends itself to a double look: on the one hand it increases the probability of a cut in US rates of 0,50%; on the other hand, it increases fears of a possible recession in the world's leading economy.
With this cross-eyed feeling Business Square lose 1,17%, Frankfurt scores -1,63%, Amsterdam -1,41% Paris -1,07% Madrid -0,83% London -0,71%.
In New York, the worst suffers nasdaq, -2,23%. Nvidia yields about 5% and the S & P 500 (-1,41%) is preparing to close the worst week of the year.
The dollar is weak against the yen, while oil is falling. T-Bond prices rise and yields fall further.
US jobs fall short of expectations in August, German industrial production collapses
Returning to the news of the day, which is raising so much dust: non-farm jobs created in August in the United States are results lower than expected (142 thousand against estimates of 161 thousand), but unemployment fell to 4,2% from 4,3%, as expected. average hourly wages rose 14 cents, or 0,4%, to $35,21; they rose 3,83% from a year earlier. These numbers are now dividing analysts. Some believe they are not weak enough to induce the Fed to ease more aggressively, while others believe the Fed risks going long after its heavy tightening. According to the Sun 24 hours At the moment traders are giving 55% chance of a 50 point cut, against a 45% chance of a 25 basis point cut. In any case, the markets, after an initial positive reaction, began to lose ground.
Europe also has its own problems to deal with. Eurostat has announced that the Eurozone growth and the EU in the second quarter of 2024 was 0,2%, compared with the previous quarter and thus lower than the 0,3% flash estimate. In the first quarter, GDP had grown by 0,3% in both areas. Compared with the same quarter of 2023, it increased by 0,6% in the euro area and by 0,8% in the EU27.
La Germany, the region's leading economy, continues to do so ringing alarm bells: the Industrial production fell 2,4% in July, compared to the -0,3% expected by analysts.
An uninspiring economic picture that maintains the euro-dollar in a calm sea, for a change of 1,11. The Petroleum he sees no reason for optimism in a world where major economies are slowing. Brent and WTI futures are down more than 1,5%, with prices below $72 and $68 a barrel.
Piazza Affari, utilities hold, banks in the red
In Piazza Affari the shock wave does not hurt the utilities, but the rest of the main list goes down, on a day in which politics is still all concentrated on the“Sangiuliano-Boccia” affair, which the resignation of the Minister of Culture seeks to put an end to.
The banks, a traditional barometer of the Milanese stock market, are negative starting from Ps -2,73%, Frof Sondrio -2,48% Understanding -2,25% Bper -2,18%. Today, the news that a court has frozen the securities of the Russian division of the Austrian bank has been added to the complex of news. Raiffeisen Bank (-6,89%). Division that the institute wanted to spin off. Raiffeisen has announced that it will appeal against the decision of the Russian judge, but the stop has displeased the sector at a European level, also because it is the largest block of assets made so far in the tug of war between Moscow and the West.
The reddest part of the Ftse Mib is then occupied by Prysmian -3,9% ed stm -3,08%. You realize about Telecom -2,72% and Unipol -2,26%, while luxury continues to decline with cucinelli -1,94%.
Utilities are the upper end of the list, with the exception of Italgas, which dropped 2,23% after press sources wrote that the company will resort to a capital increase of one billion as part of the operation for the possible acquisition of 2i Rete Gas. Good instead Hera + 1,37% A2a + 1,07% Enel + 0,8% Erg + 0,49 % Terna + 0,2%.
Stable spreads
Government bonds close a positive session, with yields falling. On the secondary market, BTP 3,54-year falls to XNUMX% and the Waist of equal duration at 2,14%, for one spread slightly widening to 140 basis points.
