The European stock exchanges they rebound in the last session of the week now convinced that the ECB will lead the way in cutting rates. Lagarde, moreover, said it clearly: “We do not depend on the Fed”. And therefore even if the US central bank decides to move forward the easing of monetary policy, the Eurotower will continue on its way, intervening on the cost of money as early as June (data permitting).
Latest stock market news: Europe rebounds after the ECB
In this context, Piazza Affari is proceeding vigorously together with the other European stock exchanges after yesterday’s decline triggered by the weakness of the banks due precisely to the expectations of an ECB rate cut in June. In the middle of the day the Ftse Mib rose by 1.17% to 34,108 points, recording one of the best performances on the old continent. They rise by 0.95% Paris And AmsterdamWhile Frankfurt advances by 1.1%. Slightly further back Madrid (+0.57%), while outside the EU it is on the skids London (+1.25%) despite the slowdown in UK GDP.
On the stock market, the new run of Societe Generale (+4%) on the Paris Stock Exchange after a divestment operation. The French bank announced the sale of two branches in Morocco for 745 million, following the announcement of the agreement for the sale of SGEF. In Frankfurt, however, it collapses Varta (-29.3%). The German battery manufacturer has announced that it will update the restructuring plan, as it is not sufficient compared to the objectives. Thyssenkrupp is up 2.7%: the company has disclosed the details of a restructuring program for the steel division, with measures involving job cuts that are not yet quantifiable.
Rain of macro data, US quarterly reporting season begins
The tea season begins todayUS magazines. As per tradition, the big banks will open the dance. In fact, the accounts are expected in the early afternoon Jp Morgan Chase, Citigroup and Wells Fargo.
Meanwhile, a deluge of macro data has arrived in Europe. We start from Italy, where in January, Istat estimates, the industry turnover, net of seasonal factors, recorded an economic decline both in value (-3.1%) and in volume (-2.6%). However, a cyclical increase is observed for the services sector both in value (+1.6%) and in volume (+1.7%). On a trend basis, in January 2024, industry turnover, corrected for calendar effects, shows a decline in both value (-3.6%) and volume (-1.8%). There were 22 calendar working days compared to 21 in January 2023. In services, however, trend increases of 3.6% in value and 3.8% in volume were recorded.
From the United Kingdom instead, data arrive on the GDP which in February increased by 0.1% on a monthly basis, slowing down slightly compared to the growth of 0.3% recorded a month earlier, as data from the Office for National Statistics showed. In Germany harmonized inflation in March grew by 0.6% month on month, while the figure increased by 2.3% year on year. In Spain instead, according to final data from the National Institute of Statistics (INE) inflation rose to 3.3% in the 12 months to March from 2.9% in the period up to February. The data is higher than expected.
And remaining on consumer prices, the ECB forecasters left them unchanged Eurozone inflation prospects for the current and subsequent years. According to the Survey of professional forecasters (SPF) for the second quarter, in fact, the harmonized index of consumer prices is seen at 2.4% in 2024 and 2% in both 2025 and 2026. No change also in the estimates on “core” inflation, which excludes food and energy, nor in longer-term expectations, unchanged at 2%.
Amplifon takes off in Piazza Affari, banks rebound
Shot of Amplifon on Piazza Affari with the stock rising again (+3.5%) after the slide two days ago due to the EU Antitrust investigation into hearing aids. Today, the analysts who expect a start to the year “consistent” with the guidance and therefore the confirmation of “a solid trend” are giving impetus to trade. Equita raised the target price to 33 euros (from 29 euros). Intermonte expects a group turnover of 566 million, up by 4.7% (of which 5.1% organic) and an adjusted Ebitda of 133 million (+7% with a margin of 23.4%) with a faster progress marked in EMEA and to a lesser extent in other regions.
On the shields (+3.5%) also Saipemwhile among the utilities they stand out A2a and Is in the, both at +2.7%, Snam (+2.22%) e Terna (+2%). Leonardo continues to advance in the wake of geopolitical tensions (+2.6%).
Banks rebound after losses the day before. The sector index rose by 1.4%, driven by Pop Sondrio (+2%), Unicredit (+2%) e Intesa Sanpaolo (+1.75%).
Only four blue chips are down: Interpump (-1.75%), Iveco (-1.49%) Stellantis (-0.97%) and Diasorin (-0.09%).
Oil on the rise, gold continues its run
Prices are rising petrolium rebounding as escalating tensions in the Middle East raise the risk of supply disruptions from the region, even as the market is tipped to end the week in the red on expectations of fewer US interest rate cuts this year . At 12.30, Brent futures rose by 0.7%, to 90.4 dollars a barrel, while WTI futures advanced by 1%, to 85.88 dollars. Benchmarks pared the upside after the International Energy Agency (IEA) cut its global oil demand growth forecast for 2024 and forecast a further slowdown in 2025.
Among raw materials the race does not stop‘gold, which today reached a new historical record above $2,400 on both the spot and forward markets. The spot price of gold reached a peak of $2,400.59 per ounce, before settling just below this high at $2,395.87/ounce. The futures contract for June delivery jumped to $2,412.95 per ounce, compared to a high of $1,428.05, continuing the largely positive performance seen since the beginning of the year which highlights a +16%.
Spreads and yields falling sharply
Cala lo spread between BTp and Bund, after the ECB’s announcement on Thursday had caused yields to rise. At mid-day the spread between the Italian and German ten-year bonds stood at 135 basis points, four less than Thursday’s close. The yield of the benchmark ten-year BTp also fell sharply, falling to 3.75% from 3.86% the day before.
