Halfway through the session, the European stock exchanges remain in positive territory, thanks to the encouraging performance of Wall Street, which hit its highest since 2022. This momentum was further supported by recent reductions in U.S. jobless claims, easing fears of a sharp economic slowdown. Optimism also continued on Asian stock markets overnight, and futures indicate a positive day for US markets too.
A Business Square, the Ftse Mib index advances by 0,51%, thanks to banks and Leonardo. This positive trend is in line with the other main European price lists: Paris grows by 0,47% thanks to the drop in unemployment, followed by London (+ 0,46%) and Frankfurt (+ 0,42%). Madrid stands out with an increase of 0,86%. In the early afternoon, however, European stock markets began to slow down and some, including Milan, went into negative territory.
Investors are now waiting for the next macroeconomic data, such as inflation and retail sales in the United States, while a good dose of economic data arrives in Europe.
Today's macro data
In France, unemployment rate fell from 7,5% to 7,3% in the second quarter, a decrease of 0,2 percentage points.
In Italy, in July 2024, theIstat estimates that the consumer price index increased by 0,4% on a monthly basis (revised downwards from the preliminary +0,5%) and by 1,3% on an annual basis (compared to 1,3% in previous month). This increase reflects an increase in prices in several categories, with a notable increase in regulated energy goods (+11,7%) and a slowing of the decline in unregulated energy prices. Prices of tobacco and recreational services have also increased, contributing to rising inflation. However, the growth rate of “shopping cart” prices slowed to +0,7% compared to +1,2% in the previous month. “Background” inflation, which excludes energy goods and fresh food, remained stable at +1,9%, while inflation excluding only energy goods fell slightly to +1,8%.
In Germany,July inflation is confirmed at +2,3% per year, with a monthly increase of 0,3%. Falling energy prices have helped limit the rise in inflation, while service prices continue to rise.
Bank of Italy: loans declining in June, deposits growing and rates falling
In the month of June, Bankitalia reports a 1,6% decline in loans to the private sector from last year, improving from May's 2% decline. THE Loans families fell by 0,9% (from -1,0% in the previous month), while those at companies saw a reduction of 3,4% (from -1,0% in May). THE deposits increased by 2,9%, after a slight decrease of 0,1% in May, and the collection of bonds it grew by 14,8%, down from 18,8% in the previous month.
As regards the rates, those on loans for the purchase of houses are got off to 4,02% (from 4,04% in May). New consumer loans decreased to 10,29%, while the average rate on loans to companies is 5,26%, with values of 5,64% for loans up to 1 million euros and 5,04% for higher amounts. Finally, deposit rates fell to 1,03%.
Positive Wall Street
Wall Street had a particularly positive day yesterday, with the main American indices achieving some of their best results since the autumn of 2022.S & P 500 rose by 2,3%, while the Nasdaq it closed with a notable +2,9%. This bullish momentum led to a significant decrease in the Vix volatility index, which stood at 23,8 points, signaling a reduction in concerns about market instability. THE futures they are clearly positive, suggesting that the enthusiasm could continue into the next sessions.
Il return of the 10-year Treasury Note increased to 3,97%, compared to 3,92% yesterday. The auction of $25 billion in 30-year Treasury Notes received a rather cold response from the market.
Generali suffers in Piazza Affari, banks and Leonardo shine
A Business Square, Generali drops 1,81% after reporting results slightly lower than expected. Mediobanca, Generali's largest shareholder, lost 0,35%. In contrast, Banca Mediolanum advances 2,73%, Banca Popolare di Sondrio 1,43%, Unicredit of 1,24% e B for Bank by 1,51%, supported by Unipol (+0,49%) after the results and rumors about a possible acquisition of MPS (+0,87%), despite the reservations of the Italian government. Leonardo grew by 2,41%, thanks to Goldman Sachs' update on the target price and new orders for land defense systems. Excellent performance also for nexi e Telecom Italy.
Outside of the mainstream market, it stands out Ovs (+3,19%). Well too Digital Value (+ 2,18%) and Manufacturing From Nora (+0,57%), recovering after the losses of the previous day.
The other markets
On the foreign exchange market, theeuro weakens and falls to 1,0919 compared to dollar. Also it yen shows signs of weakness after three days of appreciation. The Petroleum there has been little change, with Brent in October at around 79 dollars a barrel and WTI in September at 76 dollars, despite fears over the escalation of the conflict in the Middle East. The gas natural gas in Amsterdam fluctuates around 40 euros per megawatt hour, at the highest since the beginning of the year due to tensions between Ukraine and Russia. THE'gold drops to 2.423 dollars after yesterday's rise, while the Bitcoin continues to rise, exceeding $60.500.
On the bond front, government bond yields are decreasing slightly. The spread between BTp and Bund it drops to 143 basis points, compared to 146 in the previous session, with the yield on the Italian 3,64-year bond falling to 2,21% and the Bund to XNUMX%.
Rates have dropped toTreasury BoT auction. Today the Ministry of Economy offered annual bonds, maturing on 14 August 2025, for 7,5 billion euros. The entire amount was allocated at an average rate of 3,11%, lower than July's 3,48%. Demand was high, with requests for over 11,3 billion euros. The Bank of Italy reports that the auction will be settled on 14 August.
