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(Il Sole 24 Ore Radiocor) – Greater confidence in the cut in interest rates, accompanied by a series of positive quarterly reports, is pushing the stock markets of the Old Continent. In Milan the FTSE MIB recorded the best performance, closing with an increase of 1%, almost reaching 34,000 points (a value exceeded during the session). The other continental markets were also well set up while London remained closed for the holidays.
Some European macro data also encouraged purchases – a decline in industrial production in March in the Eurozone (-0.4%) and a higher-than-expected increase in the services PMI (from 51.5 in March to 53.3 in April). – which gives us hope in view of the start of the ECB’s monetary easing. Overseas, a speech by Fed vice president Williams is expected in the evening, while last Friday’s US employment data, worse than expected, have rekindled hopes for a double cut by the Fed during the year.
“Most traders are still digesting the latest U.S. jobs report, which cast doubt on the Fed’s ability to maintain its ‘bull for longer’ stance. Indeed, the latest lower-than-estimated NFP data showed that the U.S. labor market is tightening, reviving hopes of a more dovish approach from the government. Fed, which is a wind of relief for stock buyers. With this in mind, all eyes will likely be on central bank officials’ speeches this week, with Fed members in the spotlight, as investors look for further signs of a new dovish approach,” ActivTrades commented.
In this regard, investors await the meeting of the Bank of England scheduled for Thursday 9 May, from which signals could emerge regarding the start of the monetary easing cycle in the country.
Wall Street closes positive
Wall Street also closes positive. The Dow Jones rises by 0.46% to 38,851.94 points, the Nasdaq advances by 1.19% to 16,349.25 points while the S&P 500 makes progress by 1.03% to 5,180.76 points. The day for the American markets was marked by the April US employment report and the reassurances from the Federal Reserve on interest rates. According to the CME Group’s FedWatch Tool, there is a 32.5% chance of a first rate cut in July, compared to 26.5% a week ago, and 49.4% that it will happen in September. The chance that the Fed will cut rates by 50 basis points by the end of the year is 37.3%, versus 30.1% a week ago. On the quarterly front, investors are particularly awaiting Disney’s accounts (scheduled for Tuesday 7 May) and those of Uber (Wednesday 8 May). Also on Tuesday it will also be the turn of Reddit, which will publish its first quarterly report since the social platform company was listed on the stock exchange.
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