Listen to the audio version of the article
(Il Sole 24 Ore Radiocor) – European stock markets are falling after starting above parity. The market hopes that the ECB’s rate cut the day before will also be imitated by the Fed as soon as possible. In this sense, the data on US wages, which will provide the thermometer of US inflation and, therefore, any indications on the next moves of the American Central Bank. Meanwhile, the member of the ECB governing council Isabel Schnabel and the president of the Bundesbank Joachim Nagel they reiterated their caution regarding the next monetary policy moves.
Thus the FTSE MIB of Milan, the CAC 40 of Paris and the DAX 30 of Frankfurt are in the red with the industrial production in Germany which recorded below-expected results in April, with a 0.1% drop in the quarter (while an increase was expected) and an increase of 3.9% on a yearly basis, according to the corrected index. London’s FT-SE 100 and Madrid’s IBEX 35 also fell, while Amsterdam’s AEX held firm.
GDP and employment grow in the euro area in the first quarter
In the first quarter, according to Eurostat data, GDP growth in the euro area was increased by 0.3% and so in the European Union, compared to the latest data from last year when it fell by 0.1% in the euro area while remaining stable in the EU. Compared to the first quarter of 2023, GDP increased by 0.4% and 0.5% respectively. Same growth percentage also for Italy. Employment is also growing which records an increase of 0.3% in the two areas compared to the last quarter of 2023.
Nexi did well in Piazza Affari, the banks were weak
In Piazza Affari, Leonardo – Finmeccanica jumps at the start and then weakens, in the aftermath of the rumors that the group is interested in purchasing Iveco Defense Vehicles, a hypothesis which on the eve of the meeting attracted no comment from the companies and on the hypothesis of new orders on jets. Amplifon Interpump Group and Nexi highlighted, among the best on the list. The banking sector is weak with Banca Mediolanum Intesa Sanpaolo and Banca Pop Sondr. At the bottom of the list are Ferrari and Iveco Group. Dovalue falls out of the main basket after the agreement to purchase 100% of Gardant.
Euro/dollar little moved, oil drops slightly
On the currency market, the euro/dollar has changed little and remains around 1.088. Oil fell slightly as concerns about US economic growth prospects faded, although concerns about fuel demand remain as the summer travel season begins. Thus the July WTI remains above 75 dollars a barrel and Brent aims for 79 dollars. Gas is also falling to 33 euros per megawatt hour.
