La ECB keeps rates unchanged of reference in the first meeting of 2024 and reiterates its data-dependent approach, inflation first and foremost, also in light of the geopolitical tensions in the Middle East. The operators did not expect it news on the interest rate front: An easing of monetary policy is not expected to arrive before the summer. Thus the rate on main refinancing remains unchanged at 4,50%, that on deposits at 4%, and that on marginal loans at 4,75%.
ECB keeps rates steady in a sea of inflationary uncertainty
Therefore, the rates remain unchanged for the third consecutive break in the hike cycle that began in July 2022. “Despite a temporary increase in energy-related inflation, the overall trend remains downward due to restrictions in financing conditions, which limit demand and contribute to declining inflation” , we read in the Frankfurt note. The Committee reaffirms its commitment to bringing inflation back to 2% in the medium term, underlining that current interest rates, maintained for an appropriate period, will be crucial to achieving this objective. Future decisions will be guided by economic and financial data and the evolution of inflation. The wallet of Asset Purchase Program is shrinking, and as for the Pandemic Emergency Purchasing Program, reductions are expected in 2024, with flexible reinvestments to address pandemic-related risks.
Never markets they look above all at words of Christine Lagarde. The question is always the same, when will Frankfurt be ready to ease the tightening of money?
STM suffers in Piazza Affari, banks and cars also suffer
The pressure on the markets is easing somewhat. Milan and Madrid lead the declines with a decline of just under 1%. TO Business Square suffers in particular stm down by 2,44%, bucking the trend of the tech sector. The Italian-French company announced a declining turnover for the first quarter (-15,9%) as well as weak forecasts for the rest of the year. Especially in the automotive sector. The controversies with the Italian government they leave their mark on stellantis -1,58% Car sales along with the massive drop in Snam -2,48% after presentation of the new plan, have dragged down the price list, which is now the worst among European markets.
The banking sector is also heavy with Bper, bpm, Unicredit e Ps among the worst.
Leading the Fste Mib Ivy (+2,9%) brilliant in the aftermath of presentation of the new plan.
Lo spread BTP-Bund remains stable at 157 points, with the yield on the 3,95-year BTP coming close to XNUMX%. While theeuro which tries to hold odds of 1,09 against the dollar.
Weak European stock markets look to Lagarde: she holds Amsterdam
Lower drops for Paris e Frankfurt, limit losses London (-0,17%), while Amsterdam rises by 0,24%. Among European stocks, growth rises Nokia +8%. It estimates an improvement in 2024, thanks to an increase in sales and a decrease in costs. The Finnish company expects to achieve an adjusted operating profit of between 2,3-2,9 billion for the year. Fourth-quarter operating profit also beat expectations.
Wall Street will have to deal with Tesla
Wall Street futures moved little. Yesterday the S&P 500 +0,1% set a new all-time high, Dow Jones -0,3%, Nasdaq +0,4%. Netflix closed up 10,7%, but today Wall Street will have to deal with Tesla (-5%) which yesterday released the quarterly results with the markets closed. Earnings per share missed analysts' expectations and the company warned that 2024 sales growth will be "noticeably lower" as the facility engages in preparation work for the launch of new models.
