Risk appetite weakened in Europe today, following Wall Street's mixed start to the day following the news that the US lost 32 jobs in November. Most continental stock markets thus closed weakly again, while Wall Street is grappling with macro data to be read in a Fed key and is weighed down by Microsoft (-1,83%) on rumours relating to the reduction in sales estimates of artificial intelligence products by the Seattle giant.
Milan holds firm with Stellantis and MPS; spread under 70 basis points
Piazza Affari is practically colourless (+0,06%), but preserves the plus sign above all thanks to Stellantis (+7,7%), with the stock promoted by some brokers and encouraged by expectations of a proposal by US President Donald Trump In favor of gasoline-powered cars. Among weak banks, Monte dei Paschi (+1,36%) rebounds after four consecutive sessions in the red due to the investigation into the takeover of Mediobanca (+0,42%).
What sparked the day was actually the secondary market with the spread between the Italian and German ten-year bonds dropping briefly. below the psychological threshold of 70 basis points, closing with a decline of 2,51% and rates falling to 3,45% and 2,75% respectively.
Madrid shines with Zara
Returning to European stocks, Madrid stands out above all other markets, +0,73%, having reached its all-time highs, led by Inditex (+9,78%), Zara's parent company, which saw a strong start to winter sales, well above estimates. Frankfurt is timidly negativeLondon falls 0,14%, Paris +0,07%. Amsterdam improves, +0,51%.
USA: work disappoints
The day was packed with macroeconomic data from the United States, much anticipated ahead of the Federal Reserve meeting on December 9-10. In particular, The November job market picture is disappointing In the private sector, according to ADP, the payroll company. Last month, 32,000 jobs were lost, compared to expectations of growth of 10,000. The services PMI appears well above the 50 line, which separates contraction from expansion, but the November figure is lower than the October figure: 54,1 points, versus the previous 55 points and 55 points expected.
The ISM services index rose to 52,6, above the 52 estimate. Industrial production made a small gain of 0,1% last month, while import prices remained unchanged. This overall picture seems to be strengthen the odds of a rate cut A quarter-point cut from the Fed, but that's not exactly thrilling stocks. It's worth noting, however, that five of the 12 policymakers voting on the central bank's Federal Open Market Committee have expressed opposition or skepticism toward further rate cuts, while a core group of three members of the Washington-based Board of Governors favors lower rates.
Furthermore, every rustling of leaves raises Wall Street raises doubts about the resilience of AI-related stocks Although the sector is also in turmoil following the news that Marvell Technology will acquire Celestial AI in a $3,25 billion cash-and-stock deal, to strengthen its business in semiconductors dedicated to AI and cloud data centers. Also in the artificial intelligence sector, the Financial Times reported that the startup Anthropic has hired the law firm Wilson Sonsini to begin work on one of the largest IPOs ever, which could happen as early as 2026 and beat OpenAI to the punch.
Dollar falls, yen rises
Expectations of a dovish Fed are also reflected in the currency market, with the dollar losing ground against major currencies today. The euro is trading at 1,166 with a 0,32% increase. The ECB will also hold its monetary policy meeting this month, on December 18, but no changes in policy or interventions on the cost of borrowing are expected. Today, President Christine Lagarde, speaking to the European Parliament, noted that inflation "remains close to our 2% target."
Always on the foreign exchange market the dollar loses ground Even against the yen, at 155,18 (-0,44). The Japanese central bank meets on December 18-19, and the feeling of its intervention on rising rates has faded slightly, but a wide margin of uncertainty remains. Among raw materials, oil is gaining ground today, while peace in Ukraine, following the talks in Moscow, still seems far off.
January WTI futures are trading at $59,51 a barrel (+1,48%) and February Brent crude is at $63,20 a barrel (+1,2%). Gold is up slightly at $4219,13 (+0,32%). Silver is buoyant, having more than doubled in value since the beginning of the year. Gas is trading just above 28 euros at the MWH in Amsterdam, on the day the EU approved a total ban on all Russian gas imports by 2027.
Piazza Affari, Stm and oil stocks do well
Excluding the aforementioned blue chips, STM is up 5,65% today on the Milan Stock Exchange, following Marvell Technology's announcement. The recovery in crude oil prices is boosting the appeal of Milan-based stocks in the sector: Saipem +2,97%, Tenaris +2,34%, and Eni +1,01%. In the automotive sector (with Stellantis), Ferrari is rising +2,66%. Buying returns to defense stocksLeonardo +1,68%. The biggest declines were for Lottomatica -3,1%, Prysmian -2,55%, and Italgas -2,17%.
Buzzi -1,55% and Generali -1,82% also enjoyed a profitable day. Banks have lost ground During trading, MPS recovered, but Banco BPM fell by 1,93%, and major stocks Intesa (-0,34%) and Unicredit (+0,08%) also closed weak.
