European stock markets continue to decline, While Wall Street futures Consumer prices eased after the release of US inflation data. In May, consumer prices rose at a sustained pace for the third consecutive month, marking the largest annual increase in inflation in over three years and further reinforcing expectations that the Federal Reserve may raise interest rates by the end of the year. Specifically, the CPI rose 4,2%, the largest annual increase since April 2023, following a 3,8% increase in April. Monthly, it rose 0,5%. Both figures were in line with expectations. Core data, excluding energy and food, rose 0,2% month-over-month (versus 0,3% expectations) and 2,9% year-over-year (in line with estimates), after rising 2,8% in April.
The price lists are now awaiting any developments on the conflict in the Middle East following the cross-fire attacks between the US and Iran that occurred overnight. China also intervened in the crisis, expressing "deep concern" over what happened, calling on the parties involved to "stop the escalation." CNN, citing a diplomatic source familiar with the matter, writes that following consultations with the United States, Qatari negotiators traveled to Tehran this morning “to meet with the Iranians in an attempt to bridge remaining differences” and finalize a US-Iran agreement.
Meanwhile, in Europe, anticipation is mounting for the ECB's decision, which is expected to raise rates by a quarter of a point tomorrow. In this context, after several hours of gains, Europe's main stock markets have fallen into negative territory: Frankfurt loses 0,6%, Paris 0,25%, Madrid 0,18% and London 0,4%. Amsterdam (-0,09%) and London (-0,05%) are just below parity.
Wall Street futures fall
After inflation data in line with expectations, US stock market futures are reducing their declines. Those on Dow Jones mark -0,36%, those on the S&P -0,27%, while the futures on Nasdaq they are down 0,4%.
Semiconductor stocks still under pressure, probably in view of the IPO SpaceX scheduled for Friday: Micron and Qualcomm, for example, fell 4,7% and 3%, respectively. Some traders believe that investors, especially small retail investors, are selling some of their stocks to make room in their portfolios for the largest IPO ever. Others believe the weakness is simply due to profit-taking after such rapid growth.
Piazza Affari holds firm with banks and Stm
Milan The Italian stock market is trying to resist the sell-off by focusing on the banking risk game, with the FTSE MIB gaining 0,16% to 50.345 points. In the banking sector, MPS (-0,13%) and Mediobanca (-0,12%) slowed their pace, returning to the previous closing levels, while Banco BPM (+3,2%) took center stage, in the wake of numerous rumors about the institution's future after the offer presented in recent days for MPS, which was overshadowed by the takeover bid launched by Intesa Sanpaolo (-1%) with the support of Unipol (+ 1%).
It remains above par UnicreditOn Tuesday, after the markets closed, Piazza Gae Aulenti announced that subscriptions to the Commerzbank offer had risen to 10,9%, bringing the total stake (direct + derivatives) to 54%. Meanwhile, the market is questioning CEO Andrea Orcel's possible moves in Italy.
Supporting the price list is also stm, up 2,4%, supported by the promotion to “Buy” by Bank of America. Also doing well Poste Italiane (+1,7%) after Deutsche Bank analysts increased their target price to 29,1 euros per share from the previous 21 euros, confirming their “Buy” recommendation on the stock. Telecom Italy (+1,14%), benefiting from the upgrade by S&P S&P which raised the credit rating of the Tim group to BB+ from BB, with a stable outlook.
At the bottom of the list is instead placed Prysmian (-3,3%), luxury also did badly with Moncler (-1,6%), Classic Ferrari for sale (-0,5%). Down Campari (-1,04%) And Diasorin (-0,99%).
The other markets
Little moved the Petroleum North Sea Brent crude is stable at $90,96 a barrel (-0,5%), while WTI is down a fractional 0,2% to $88. Gas prices are stable, trading at €48,73 per megawatt hour in Amsterdam. On the currency market, the euro Bitcoin remains stable at $1,551 (yesterday it closed at $1,1550). Finally, bitcoin falls 1,2% to $61.284.
