Le European stock exchanges they advance decisively to half sitting, and Business Square leads the group with the Ftse Mib index rising of 0,81%, to 32.266 points. Despite the signs of weakening of the German economy, highlighted by the collapse of the Zew index and the decline in industrial production in the Eurozone, optimism prevails thanks to the slowdown in producer prices in the United States. This drop spurred purchases at Wall Street, reducing recession fears and fueling expectations of a possible interest rate cut by the Fed next month. Investors are now focused on the data relating to consumer prices and retail sales expected in the mid-August session.
In the meantime, the New Zealand surprised markets with an unexpected 25 basis point rate cut, fueling speculation about a possible easing of monetary policies in other regions too.
European economy: stable GDP but declining industrial production
The European economic picture shows mixed signals: the Eurozone GDP grew by 0,3% in the second quarter compared to the previous three months and by 0,6% on an annual basis, in line with forecasts. Growth remains stable, replicating first quarter data. However, the industrial production has registered a decline in June, marking -0,1% month-on-month and -3,9% year-on-year, indicating difficulties in the manufacturing sector.
In UK,July inflation showed a slight decline of 0,2% on a monthly basis, while it increased by 2,2% on a yearly basis. Investors are awaiting further data on GDP and industrial production to assess the performance of the economy.
Europe: London shines with Flutter and Playtech, Zurich advances with Ubs
In addition to Milan, the other European stock markets are also rising: Frankfurt earns 0,41%, the French 0,33% and London 0,23%, thanks to the securities of Flutter; e Playtech. Flutter Entertainment, following the acquisition of Sisal, is now in exclusive negotiations with Playtech to purchase Snaitech (formerly Snai), valued at £2 billion. This news pushed Playtech shares up 22% to 657 pence in London, while Flutter shares rose almost 9%. In 2023, Flutter recorded revenues of $11,79 billion, including $1,35 billion in Italy, and operates brands such as Fanduel and PaddyPower.
Colorless Madrid. The Zurich Stock Exchange advances by 0,45%, supported by UBS results above expectations. CEO Sergio Ermotti commented that the first half results reflect the “significant progress” following the acquisition of Credit Suisse.
Cars and banks are highlighted in Piazza Affari, Juve is racing
A Business Square, the performances of stellantis e Leonardo, both up 2%. Good too Team, which benefits from the recent sale of the residual 10% stake in Daphne 3, and from CEO Pietro Labriola's declarations on the sale of the network. Among the banks, Popular Sondrio (+ 2,12%), Bper (+1,68%) — supported by the increase in the target price by Kbw — Unicredit (+ 0,8%), Understanding (+ 0,6%) and Bpm bank (+0,3%) all show positive signs. Ferrari e Campari they rose by 1,46% and 1,28% respectively.
At the bottom of the list, Mps Bank drops by 0,39%, while Recordati lost 0,24% under pressure after an article in the Financial Times on new European Union rules for rare diseases, which could negatively affect trials and orphan drugs.
Outside the main price list, the Juventus gains 10%, with trading volumes well above the daily average. The rise is fueled by expectations for the start of the championship and by rumors about the possible arrival of Koopmeiners from Atalanta, as well as by the expected news regarding the future main sponsor.
Civitanavi Systems advances 2,67% as Honeywell's takeover bid nears completion, with the tech giant now controlling 99,24% of the company. The delisting of Civitanavi shares is scheduled for August 26th.
The other markets
Il dollar si weakens against the major currencies, while the slowdown in producer prices in the United States raises hopes of an imminent interest rate cut by the Fed.euro takes advantage of the situation and surpasses the $1,10 threshold, reaching a peak at 1,1005, the highest level since January.
In the commodity market, the Petroleum loses momentum: Brent stabilizes around 80 dollars a barrel (-0,17%) and WTI drops below 79 dollars (-0,36%). The rise of the last five sessions gives way, while concerns about a possible oil surplus in 2024, according to the latest IEA estimates, ease pressure. Also the gas It loses strength and remains below 40 euros per megawatt hour. Instead, the price ofgold continues to shine at historic highs.
On the European bond front, movements are limited: lo spread between BTP and Bund remains stable at 141 points, with the yield of the ten-year BTP at +3,58%, approaching the historic lows since last March. Investors have their eyes on US inflation data, which could give a decisive direction to bond markets.