La ECB cuts borrowing costs for fourth time this year and, with a reduction of 0,25%, brought the deposit rates to 3%. The measure was widely expected, however, and so the reaction of the markets was cold, resulting in a contrasting final picture of the European price lists, while Wall Street weak trend after yesterday the Nasdaq exceeded 20 thousand points for the first time. The one that stole the scene from the Eurotower was rather the Swiss central bank which decided on a 0,5% cut, with more decisive effects on the Swiss franc.
The final photo shows Business Square in the spotlight with a 0,36% increase, once again on the way towards 35 thousand basis points. The queen of the list is cucinelli, +8,04% and banks are confirmed as front page headlines. Italian paper, on the other hand, closes a decidedly negative session: the spread between ten-year BTPs and Bunds of the same duration at 113 basis points and above all rates are rising. The Italian bond jumps to 3,33% (from 3,2% yesterday) and the German one to 2,19%.
Returning to the Eurozone stock market: the progress is timid Frankfurt +0,15%, while they slightly retreat Paris -0,03% Amsterdam -0,19%, and Madrid -0,23%. Outside the bloc, London is also practically flat, while Zurich achieved a gain of 0,33%.
Wall Street Rings a Bell Out of Tune, Even If Trump Ringed It
Opening bell out of tune today on Wall Street, even though the one who rang the bell, in a stadium-like cheering, was the president-elect Donald Trump. The New York Stock Exchange has posted stellar gains since the vote over a month ago, but gains are prevailing today after the Nasdaq surpassed 20 basis points for the first time yesterday. At the moment, the DJ it is colorless, the Nasdaq loses 0,12%, the S & P 500 0,1%.
On the macro front, the rise in producer prices of last month (+0,4% against +0,2% compared to October and 3% annually, against estimates of +2,6%) and the above-expected growth of weekly claims for unemployment benefits, although the market is still betting on another 0,25% rate cut by the Federal Reserve at next week's meeting.
ECB seems to be opening up to new cuts
Staying on the subject of central banks, observers underline how today's press release from the ECB and the words of Christine Lagarde suggest a path to loosening the restrictions next year, with four new cuts expected. The Eurotower observed that inflation is moving towards the 2% target in the medium term and that the economy is showing signs of weakness. The statement did not mention the need to keep rates at “sufficiently restrictive” levels, i.e. at a level that limits economic growth.
Frankfurt further cut its growth forecast to 0,7% this year, 1,1% next year, and 1,4% in 2026. Inflation is seen at 2,1% in 2025, 1,9% in 2026, and 2,1% in 2027.
Euro in tune; Swiss franc weakens
On this day theeuro is well-tuned against the dollar, for an exchange rate that however does not deviate much from 1,05 against the dollar. Swiss franc instead it loses ground against the US dollar and against the single currency. The euro rises by 0,5% and is trading at 0,9325.
Red seems to be the dominant color for raw materials today.spot gold loses 1,35% and falls back to 2681,26 dollars per ounce. The Petroleum it goes out after the fires of the previous day: Texan crude oil, January 2025, is trading below 70 dollars a barrel (-1,44%, 69,28 dollars) and Brent, February 2025, is below 73 dollars (72,59, -1,26%).
Piazza Affari, hot session for Cucinelli
The title of Brunello Cucinelli was rewarded today by buyers and analysts after the top management yesterday announced an upward revision of revenues for the current year, to 11%-12% from 10%, with a fourth quarter expected to increase by 9%, thanks to a growth in retail revenues of around 12%. Sales are doing well in all regions and, very importantly, there is an acceleration in China. Equita has raised the target price on the stock to 105 euros.
The banking sector remains the most effervescent and today purchases have returned in abundance Bfor, which closed up 4,9%. Also doing well Unipol +1,8%, the main shareholder of the Modena bank and also of the Popular of Sondrio +1,49%. They are confirmed in evidence Montepaschi +1,76% and Bpm bank +1,16%. Good progress also for the big ones, Intesa Sanpaolo +1,28% and Unicredit + 0,64%.
Among health stocks remains in money Amplifon, +1,1%, which was also noticed by some brokers. In particular, Equita increased its recommendation on the stock to “buy”, with a confirmed target price of 32 euros and sees an acceleration in growth “in light of the significant underperformance of the stock in the last two years (-34% compared to the Eurostoxx and -66% compared to the Ftse Mib)”.
They shine Campari +1,75% and Telecom + 1,24%. Pirelli marks +1,54%, in a context of press rumors according to which Camfin is working on a maxi-financing to equip itself with the ammunition needed to further grow in the capital of the company, of which it already holds 26,1%. For analysts at Intesa Sanpaolo "the potential increase in the share" is "fully in line with what the group has already announced".
The blue chip that has the biggest downfall for the day is Prysmian, -2,52%, alarmed by an investigation conducted by the AGCM on low voltage copper cables in Italy. Utilities continue to show weakness.
