European stock exchanges uncertain in the aftermath of Federal Reserve which left rates unchanged and took time on future cuts. The disappointment was palpable on Wall Street where in the last session of January the three main stock markets recorded their worst performance in the last 4 months. The worst? The Nasdaq, weighed down by sales on big tech, with Alphabet in the lead.
Inflation down in the Eurozone, accelerates in Italy
Not even the data on theinflation, falling in January in the Eurozone, but accelerating in Italy. This is a fundamental parameter for understanding what the ECB's next moves will be. In detail, according to Eurostat's flash estimates, last month the annual rate was 2,8%, in December it was 2,9% after 2,4% in November, 2,9% in October, 4,3 % in September.
The situation in Italy is different, where preliminary estimates from Istat show that the national consumer price index for the entire community (Nic), including tobacco, recorded an increase of 0,3% on a monthly basis and of 0,8% on an annual basis (from +0,6% in the previous month). According to the Institute "the moderate acceleration in the rate of growth of prices reflects the trend in the prices of regulated energy goods, whose decline on a trend basis was, in January, attenuated due to the statistical effect due to the unfavorable comparison with January 2023 ”. A contribution to the rise in inflation is "also due to the persistence of tensions on the prices of unprocessed food goods, the effects of which are also manifested in the acceleration of the so-called shopping cart (+5,4%)", adds Istat .
Data on the Manufacturing SMEs rose in January to 46,6 points (from 44,4) in the Eurozone, to 43,1 points in France (from 42,1), to 45,5 points (from 43,3) in Germany, to 47 points ( from 46,2) in the UK, to 48,5 points (from 45,3) in Italy.
Eyes on the Bank of England
After the ECB and the Federal Reserve, now it's the turn of the Bank of England which at 13pm today (Italian time) will reveal its decision on the interest rates. The British central bank is also expected to leave rates unchanged, but investors are waiting for some indication of future cuts.
Latest stock market news: the performance of European stock markets
In this context, European stock markets are proceeding in no particular order: they are rising Amsterdam (+ 0,35%), London (+ 0,4%) and Madrid (+0,5%). Sales instead hit Paris (-0,8%), weighed down by BNP Paribas, which collapsed by 8% after a fourth quarter below expectations and the revision of the targets to 2025. Also below parity Frankfurt (-0,27%). Milano it is placed in the middle, losing 0,37% to 30.629 basis points.
In Piazza Affari, Tim and oil shine, utilities down
In Milan the protagonist is still Tim which after yesterday's +2,16% gains today by 1,43%. Late on Wednesday evening, the group received the proposal from the Mef to purchase Sparkle. “In the same, reference is also made to the possibility of negotiating a different option, with possible adjustments to the contractual conditions, in the event that TIM maintains a minority share for a specific period of time and supports the implementation of the strategic plan. The offer will be effective for 15 days and will be submitted for examination by Tim's Board of Directors scheduled for February 7th", reads the company note.
Oil companies also did well Tenaris (+ 1,7%), Saipem (+1,2%) ed Eni (+0,69%). Auto sales are on the rise with Iveco (+1,34%) and Stellantis (+0,7%).
It is at the bottom of the list A2a (-2%) followed closely by Enel which lost 1,86% after Jefferies cut the stock to hold and the target price to 6,5 euros from 7 euros. In red too Ivy (-1,77%). Sales on Ferrari (-1,36%) waiting for the accounts.
The other markets
After the Fed and the Eurozone inflation data, theEuro it remains below 1,08 to the dollar. The single currency reached an intraday low of 1,0779 against the dollar during the day, the lowest level since 12 December (1,0762), before rising to 1,0795.
Lo spread instead it is at 157 basis points, with the rate on the Italian ten-year rising to 3,7898 points. Prices are traveling with an increase of around 1%. Petroleum Brent and WTI are awaiting the OPEC+ monitoring committee from which in any case no proposals for changes to the current cut plan should come, underline the MPS analysts.
