Listen to the audio version of the article
(Il Sole 24 Ore Radiocor) – After a rising start, European stock markets slow down and continue the session cautiously, as the target of the rate cut by the ECB approaches. Barring any surprises, the Eurotower should begin lowering the cost of money in June, continuing to follow a data-driven approach independent of the Federal Reserve. Overseas, in fact, the cut seems to be postponed until the summer.
The FTSE MIB of Milan, the FT-SE 100 of London (the best of the Old Continent), the AEX of Amsterdam and the IBEX 35 of Madrid are traveling in positive territory. The CAC 40 in Paris and the DAX 30 in Frankfurt slip below parity. To support the price lists, the raw materials, with gold continues to run above $2,400 per ounce, together with energy stocks, with the price of oil towards 91 dollars.
Roundup of data for Europe: from harmonized German inflation in March (+2.3%) to industrial production in the United Kingdom (+1.1% in February, +1.4% year-on-year). In the United Kingdom, GDP showed slower growth in February (+0.1%). In Italy, industrial turnover fell both in value (-3.1%) and in volume (-2.6%).
Futures falling on Wall Street with banks facing the test of accounts
Futures falling on Wall Street on the day the season of American quarterly reports began, with the accounts of the big banks. JPMorgan reported higher-than-expected profits and rising revenues by 9% to 41.93 billion, Citigroup’s results, however, were negativewhich recorded a -27% profit at 3.37 billion, still above estimates. Wells Fargo also saw a drop in profits, with profits down 7% to 4.6 billion. The indices are coming off a rising session, after a lower-than-expected increase in producer prices. Now, analysts rule out a first interest rate cut in June: According to the CME Group’s FedWatch Tool, the odds are at 22.9%, compared to 56.1% on Tuesday. Furthermore, the chance of a cut at the next meeting on July 31 is only 41.5%. The Fed is more likely (45.1%) to wait until September for its first rate cut, according to experts.
Saipem and Amplifon on the rise, banks doing well
Saipem, Enel and Amplifon are running on Piazza Affari, with analysts’ positive outlook on long-term trends. The banks – after the losses of the day before – return to positive territory: Intesa Sanpaolo and Unicredit stand out, having confirmed Andrea Orcel as CEO. At the bottom of the list Iveco Group, Stellantis and Interpump Group.
