New session, new rise. On a day so far without strong points of reference, the European stock exchanges continue to gain ground, albeit at a slower speed compared to the performance of the day before. Investors' eyes are already focused on the United States, where data is expected in the early afternoon retail sales and producer prices of February, which “could be used to confirm or deny the stronger-than-expected consumer inflation report earlier this week”, explains Matt Simpson, senior market strategist at City Index, to Bloomberg.
ECB: time needed to cut rates
The European Central Bank must take the time to cut interest rates in the right way, chief economist Philip Lane said at the Cnbc: “Many factors are accumulating (in favor of a decline, ed.), but what is also fair to say is that for the transition from this phase, during which we have remained suspended in a substantial cycle of increases, we must take our time". According to Lane, the March meeting of the Eurotower was an “important milestone” in the accumulation of evidence, which showed that “the process of disinflation is underway. We continued to make progress, we continued to move towards our 2% goal,” she concluded.
Stock market latest news: Positive Europe
In this scenario, it Stoxx 600 rises by 0,3% and seems to be heading for its eighth consecutive week of rise. Driven by Leonardo, Business Square exceeds 34 thousand points, the highest since 2008, and then drops below again, to 33.996. The best is instead Paris which updates the highs and rises by 0,88% 8209 points. They follow Frankfurt (new highs here too), Madrid e Amsterdam, all with increases around 0,2%. It is below parity (-0.04%) London.
Leonardo's exploits in Piazza Affari, Tim and Erg rebound
It is in Milan Leonardo the pink shirt of the session. After the +3,45% recorded yesterday, the stock gains 4,88% today. In addition to the long wave of the new plan, what is driving the shares is the judgment of JP Morgan analysts, who confirmed the "overweight" recommendation and raised the target price by 38% to 27,5 euros (from the previous 20). It bounces Erg (+3,18%) after the ground lost the day before (-4,9%) following the presentation of the accounts. The return to profits and dividend announced on Wednesday drives the stock Saipem (+3%), closely followed by Brunello Cucinelli (+2,93%) while waiting for the accounts.
After the collapses of the last week it recovers Telecom Italy (+3,06%). Earn half a percentage point Snam who presented the 2023 accounts this morning closed with growing revenues and investments. During the conference call, CEO Venier announced the start of a due diligence for Edison's storage facilities, with closing expected in June. Salt 0,8% Eni on the day of the 2027 strategy which will be presented to analysts in the early afternoon.
Below parity, banks and managed savings: Azimuth (-0,88%), Mediobanca (-0.62%), Fineco, Banca Mediolanum e Ps, all with reductions of around 0,5%. Worst title of the session is Amplifon (-1,16%).
Wall Street futures showed little change
They are Wall Street futures showed little change awaiting data on retail sales and above all on producer prices, which are essential for confirming the Fed's next moves. The market "expects central banks to begin cutting rates and it would be surprising if this did not happen. Markets would get nervous if they thought rates would remain at current levels for much longer. Western central banks will start cutting rates in the summer, and then continue this year and next,” said Karen Ward, chief EMEA market strategist at JPMorgan Asset Management during the International Media Summit underway in London. According to Maria Paola Toschi, EMEA global market strategist at JPMorgan Am, the American economy, which showed signs of strength in 2023, should continue on the same path also in the current year, with an indication of growth around 2% - 3%.
The other markets
It drops to 118 basis points spread between BTP and Bund, with the yield of the benchmark ten-year BTP at 3,5446% (-1,08%). Instead, it rises Petroleum, while investors evaluate the latest data on the oil market from the International Energy Agency (EIA), which has revised upwards its demand growth expectations and cut its forecasts for non-OPEC supply in 2024. Mid-day futures on May Brent they gained 0,6%, to 84,54 dollars a barrel, while US West Texas Intermediate (WTI) crude oil in April rose by 0,77%, to 80,33 dollars.
On the currency market, the exchange rate has changed little euro/dollar in area 1,094. Gold is stable, while in Shanghai the copper hits its highest since May 2021 after Chinese producers agreed to a production cut. The bitcoin remains stable above $73.000.
