The euro rises to a 4-year high against the dollar, gold updates its records, Gaza is invaded And, on the eve of the Fed's decision—which is expected to announce a 0,25% rate cut tomorrow—investors are choosing to cash in today after the recent positive momentum. European stock markets closed sharply lower, and Wall Street appears weak in the US morning, waiting for fresh insights from Jerome Powell's comments on future scenarios in about 24 hours. In the background, a geopolitical situation remains unresolved, while tensions in the Middle East are rising following Israel's ground invasion of Gaza City.
Meanwhile in Europe Mario Draghi try once again shake the countries The Union's inaction and, one year after the publication of the Competitiveness Report, warns: "Our growth model is fading. Vulnerabilities are increasing. And there is no clear path to finance the investments we need. Inaction threatens not only our competitiveness, but our very sovereignty."
Europe in decline
In this context Piazza Affari loses 1,28% and fell to 42.7504 basis points, penalized by sales in Moncler (-3,24%), Leonardo (-3,02%), and banks. Montepaschi in particular fell 2,87% on the day of reopening of the Mediobanca offer (-2,32%), which ends next Monday. Frankfurt had a difficult day, down 1,66%, despite German investor sentiment unexpectedly improving in the September update of the ZEW index.
London loses 0,93%, with the Starmer government having to contend with unemployment stuck at 4,7% in the three months to the end of July, a four-year high. Paris drops 1% and continues to struggle. in an endless political crisis, due to which the French central bank yesterday reduced its economic forecasts for the next two years, warning of downside risks arising from budgetary uncertainty following yet another government collapse, the third in just over a year.
Madrid loses 1,5%. Among the worst performing stocks is Banco Sabadell (-2,5%) in a scenario of growing uncertainty following the statements by the top management asking for a significant increase in the price of the BBVA takeover bid (-0,89%) to take it into consideration, while Bilbao has so far excluded the option of a relaunch.
Wall Street cautious
Across the pond, Wall Street is moving cautiously, listening closely for news coming from two major powerhouses. In particular, The White House would like more from the Central Bank, but today President Donald Trump spoke to Bloomberg, saying that "the Fed must be independent." This is almost an oxymoron compared to what the US administration has said so far, which also announced an appeal against the court decision that blocked the tycoon's attempt to fire Governor Lisa Cook.
Cook is thus participating in the two-day meeting of the Central Bank, and among others is Stephen Miran, President Trump's economic adviser, who was just sworn in as a member following his Senate confirmation yesterday. Regarding the cost of US money, the market practically takes a cut for granted by a quarter of a point, but there is a small, more optimistic segment (around 4%) who believe the Fed is ready for a 50 basis point cut.
In the stock Oracle is still appreciated today, +3,5%, after CBS, citing sources familiar with the matter, reported that the cloud infrastructure company is among those involved in enabling TikTok to operate in the US. The White House has provided further details regarding the Chinese social network, specifically that a group of large companies is interested in purchasing TikTok.
Yesterday much of the optimism that brought Wall Street hits new records It was rooted in Trump's words, according to which trade negotiations between the two giants are progressing well and that a framework agreement has been reached on TikTok, which Trump himself will discuss with Chinese leader Xi Jinping this Friday.
Dollar falls, gold and silver hit new highs
On the foreign exchange market, expectations of a dovish Fed are weighing on the dollar, which is falling against major currencies. The euro returns above 1,18 for the first time since July 3. The single currency is supported by data showing that the bloc's industrial production rose in July, confirming the idea that the sector is holding up despite trade tensions, even if the pace of expansion remains weak.
The fall of the greenback promotes the tireless gold rush, which again today refreshed its highs, before slowing. Spot gold is currently trading at $3685,21 an ounce, after having touched $3700. Silver is also at record highs. Oil is strengthening further: WTI is rising to $64,41 a barrel, up 1,75%, and Brent is trading at $68,36, up 1,36%.
Piazza Affari: Banco BPM holds firm amid weak banks
In a decidedly negative banking sector, Banco Bpm stands out today for the opposite sign, +0,27%. Other positive signs on the Ftse Eb are offered by a handful of stocks including Tenaris +0,69%, Eni +0,67%, Campari +0,39%, Nexi +0,34%. Classic Ferrari for sale, which dominated the stock market for most of the session, closed down 0,15% despite Berenberg's 'buy' rating, which initiated coverage on the stock with a target price of 484 euros.
Luxury, as a whole, has undergone a major reversal. The financial sector closed a weak session, which was followed by Unipol -2,78%, Intesa -2,3, Generali -2,24%, Banca Mediolanum -2,01%, Finecobank -1,98%, Bper -1,54%.
Slightly moved spread
Risk aversion is currently slightly penalizing Italian government bonds and the spread with the German 10-year bond. rises to 82 basis pointsClosing rates are indicated at 3,51% and 2,7% respectively.
