European stock markets closed mixed today, ahead of central bank meetings that will deliver their decisions on interest rates for the eurozone, the UK, and Japan in the coming days. Wall Street offered little insight this afternoon, with the stock market now trading lower after a solid start (DJ -0,21%; S&P 500 -0,87%; Nasdaq -1,25%). Piazza Affari appreciates by 0,25%, at 44.099 basis points, supported by banking and insurance stocks, sectors that attracted buying across Europe.
On the continent, London is leading the way, up 0,89%, boosted by the Bank of England's forecast of a 0,25% interest rate cut and inflation slowing more than expected in November, to 3,2% from 3,6% in October. In the Eurozone, other financial markets are slightly down: Frankfurt -0,53%; Paris -0,25%; Amsterdam -0,59%; and Madrid flat. Tomorrow the ECB should leave rates unchanged, however, it could raise economic forecasts which, for now, do not inspire great optimism.
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In Germany, the region's leading economy, The Ifo business climate index fell to 87,6 points In December, below expectations. Across the euro area, the annual inflation rate in November was stable at 2,1% (versus a flash estimate of 2,2%, the same as a year earlier).
Wall Street remains volatile as AI concerns continue.
Meanwhile, on Wall Street, the volatility seen yesterday is returning, a day in which the main indices closed mixed. The S&P 500 loses 0,43% and is at its fourth consecutive session of declineThe focus remains on AI stocks (Nvidia -4,12%) and on what the Federal Reserve will do next year, in light of the macroeconomic data that have begun to be released again since the shutdown ended. Yesterday, the job market picture didn't change estimates of two 25 basis point cuts over the next 12 months. The PCE inflation figure will be released in the coming days, while today, Governor Christopher Waller, a possible successor to Powell as Fed chairman, spoke out on interest rates. He supported the need for further cuts, but stated that "there's no rush." "Since inflation is still rising, we can take it easy; there's no rush to lower rates."
Among the stocks in the spotlight is Amazon (+0,71%). The Information reported that the e-commerce company is in talks with OpenAI for an investment of more than $10 billion. Paramount collapses (-5,1%) After Warner Bros.'s (-1,19%) board urged shareholders to reject Paramount's takeover bid in favor of Netflix's (-1,9%) offer, Oracle (-5,23%) fell after press reports that the cloud company's main data center partner, BLUE OWL CAPITAL, said it would not support the $10 billion deal for its next facility.
Oil prices rise as Venezuela blockade escalates
Oil is rising again and trading higher today, although Brent is currently still below $60 and WTI is below $56. Gains are still around 1,4% after US President Donald Trump ordered a "blockade" of all sanctioned oil tankers entering and leaving Venezuela, increasing pressure on Nicolas Maduro's government and affecting its main source of income. Texas Democrat Joaquin Castro called the move "unquestionably an act of war." In a landscape rife with uncertainties, gold remains in vogue. Spot gold gains 0,8% and is worth $4336,34 an ounce.Buying also resumed in silver, with March futures gaining 3,8% to $65,730 an ounce. On the foreign exchange market, the euro-dollar exchange rate is trading at yesterday's level of $1,175.
Piazza Affari: Banks and Insurance Companies in the Spotlight
Banking and insurance stocks are supporting the main index of the Milan Stock Exchange today. Among the biggest gainers of the day are Banca Popolare di Sondrio +2,91%, Bper +2,66%, Banco Bpm +1,84%, and Unicredit +1,44%. Insurance stocks are represented by Generali +2,23% and Unipol +1,67%In particular, the Trieste-based Lion benefited from positive comments from UBS, which reinstated coverage of the stock with a "buy" recommendation. This comes as Friday's board meeting approaches, during which the company will grapple with the termination of its agreement with Natixis and consider the prosecutor's investigation into MPS's takeover of Mediobanca, with Piazzetta Cuccia being Generali's largest shareholder.
The worst blue chip of the day is Buzzi, -3,57%, while profit taking weighs on Moncler -2,28%. Interpump -2,22%, Prysmian -2,2% and Enel -1,79% are also down. The latter, according to Reuters, was affected by the Brazilian government's statements pushing for the revocation of the Italian group's electricity concession in the state of São PauloStellantis (-0,83%) and Ferrari (-0,99%) also fell after the European Commission announced a revision of the car emissions regulation. Analysts believe the EU package, in line with media expectations, is not a true game changer for a sector that has suffered over the past two years from growing Chinese competition, slowing demand, and unfavorable U.S. trade policy.
Out of the main basket Ariston tells an interesting story, +2,91%, which brings the Riello group back to Italy, having been acquired for €289 million by the American company Carrier Global Corporation, beating out China's Haier-Midea. Analysts believe this is a positive strategic move, strengthening the group's competitive position in Italy, although the price appears high compared to the multiple paid and will need to be justified by the synergies it will generate.
Spread slightly up
The spread between 10-year BTPs and Bunds of the same duration continues to move at its lowest levels since 2009, although today it is slightly up to 67 basis points from 66 the day before. Rates are at 3,53% and 2,86% respectively.
