After having archived the last week in positive terms, with theDonald Trump's inauguration at the White House and the first executive orders that they seem to reduce the tension on tariffs, now investors' attention shifts to the monetary policies of major central banks and Chinese chips that are sending markets into a tailspin in Europe and the United States.
In Japan, the Bank of Japan raised rates to 0,50%, but with a slower growth outlook. In Europe, analysts are bracing for a possible further rate cut by the European Central Bank, scheduled for January 30. Federal Reserve, instead, will keep rates unchanged after having already reduced the cost of money in recent weeks. Meanwhile, the Bank of England is expected to proceed with a 25 basis point cut by the first week of February.
Meanwhile, thefocus is on business results: Microsoft, Meta, Apple, Amazon and Tesla are among the big names expected this week. Analysts are also keeping an eye on banking stocks, especially Mediobanca, that will discuss the offer of Banca Mps.
European stocks lose ground as DeepSeek knocks out tech sector
Le Major European stock markets start the week in the red, with the markets feeling a certain caution. At mid-afternoon Piazza Affari is above parity, the only stock exchange in the green together with Madrid. All the markets are down with Amsterdam in the black. In Milan the main performers are utilities with Hera, Inwit, Enel and A2A, while the worst performance is Prysmian (-8,6%), Interpump and Stm also down, dragged down by DeepSeek Cyclone which has raised concerns across the entire tech sector.
READ MORE: Stocks, China's DeepSeek Tsunami Shakes Up All Tech
In Milan, attention remains high on Mediobanca this week, in view of the board of directors meeting on January 28, during which the offer of Mps Bank. On Saturday, CEO Alberto Nagel reassured employees with a letter in which he specified that the offer has not yet been agreed upon and that the board will express its opinion with the aim of protecting the interests of all stakeholders, especially employees. Prime Minister Giorgia Meloni (which in the meantime has signed agreements in Saudi Arabia for 10 billion dollars) confirmed the government support to the operation, stressing that, if it were to succeed, a "third banking hub" would be created, capable of playing a crucial role in protecting Italians' savings. At Piazza Affari Mps drops again, while the Mediobanca title is above par and Generali earn more than 2%.
READ MORE: Banking Risk: The 4 Months That Shook Up Italian Finance
Wall Street in the red, strong selling on Nasdaq
Fears over the technology developed by DeepSeek are sending US stock markets into the red, with the Nasdaq which at the opening gave up more than 3% weighed down by the crash of its big caps. The crash of Nvidia which marks the largest daily decline in terms of capitalization in its history. Heavy also Microsoft, Broadcom, Meta and Amazon.
