Le European stock exchanges continue on the path of increases after the Bank of England and the Federal Reserve. The former, as expected, left rates unchanged, while the latter raised them by a quarter point, bringing them to 3,75-4%.
Meanwhile, investors' eyes remain focused on the Middle East, where some good news comes from: Saudi Arabia's East-West oil pipeline, damaged by a Houthi attack, could be restored soon. This is cooling the price of Petroleum, after the strong increases recorded in recent days: Brent is moving at 103,8 dollars a barrel (-1,9%), while Texan WTI is at 100,8 dollars (-1,6%).
The Bank of England leaves rates on hold
Despite inflation accelerating in August, rising to 3,1%, the Bank of England kept rates unchanged of interest for the sixth consecutive meeting. The Monetary Policy Committee decided, by a majority of 6 votes to 3, to keep the key rate at 3,75%. Three members had wanted to increase the rate by 25 basis points, bringing it to 4%. "Given the prevalence of upside risks to energy and food prices, stronger second-order effects could materialize. Financial conditions will continue to exert downward pressure on inflation; therefore, at this meeting, it seems appropriate to keep the key rate unchanged. However, if the conflict in the Middle East were to drag on for a long time – as seems likely – and the risk of second-order effects increased, it is it is likely that it will happen a tightening is necessary of monetary policy,” explained the governor of the BoE, Andrew Bailey.
IERI (Yesterday) The Fed raised interest rates by 25 basis pointsFor the first time in three years, inflation confirmed analysts' expectations. "More than Trump's pressure, it was the evidence of the data and market signals that mattered: inflation remains high, the economy is solid, and bond vigilantes are ready to punish any hesitation," comments Donatella Principe of Intermonte. She adds, "The decision appears less like a test of the Fed's independence and more like an acknowledgement of a problem that has become difficult to ignore. Warsh himself has called inflation both 'a choice' and 'a problem': now the central bank has chosen to address it. The real news, if anything, is the unanimity of the vote, after a long period marked by internal divisions within the board."
Central Banking Week continues tomorrow with the Bank of Japan which is expected to announce an increase, while on Monday it will be the turn of People's Bank of China.
European stocks rise
In this context Frankfurt and Madrid advance by 0,58% and 0,6% respectively, Amsterdam and Paris mark +0,38%, while London, after the Boe, gains 0,55%. Tonic Milan which at mid-day rose by 0,53% to 52.244 points.
From a macro perspective, Eurostat announced that in August the index of consumer prices Eurozone inflation stood at 3,2% on an annual basis, not 3,4% as previously indicated. However, inflation accelerated from 2,9% in July. On a monthly basis, the inflation rate rose by 0,4%, as per preliminary estimates. In the EU, according to final data published by Eurostat, the inflation rate stood at 3,2% on an annual basis and 0,4% on a monthly basis.
Pininfarina flies to Milan, with its sights set on the banks.
The actions in Milan Pininfarina they earn 17,6% after the takeover bid launched by the Indian company Mahindra to delist the company.
Luxury runs on the Ftse Mib with Moncler which rose 3,2% after positive assessments from several investment firms. Bernstein raised its rating on the stock to 'Outperform'. It also rose BRUNELLO CUCINELLI which advances by 1,6%. Tonic Fincantieri (+ 2,3%), followed by Post which records a rise of +2,3% in view of the reopening of the offer on Tim (+1,7%). It bounces Stellantis (+2,2%) after the drops of the previous day.
Attention remains high on the banks: Understanding It rose by 0,5% after IVASS's early approval of the takeover bid for MPS (+0,6%) and in particular on the indirect stakes in Generali, stable, and in the joint ventures between Monte dei Paschi and Axa.
On the downside, the black jersey is Inwit (-1%), followed by Eni, which fell 0,7% in the wake of lower oil prices. Also down Campari (-0,6%) And Buzzi (-0,5%).
Yields falling
Yields on major global government bonds are falling. Following the Fed's rate hike, 10-year Treasuries has returned below 5%, to 4,98%. Down also the BTP 10 Italians, at 4,39%, while the Waist German bonds with the same maturity stand at 3,52%. spread it's at 87 basis points.
