Macron reignites the banking risk, rates firm for Powell (Il Sole 24 Ore Radiocor) – Milan, 14 May – Another record closing for Piazza Affari with the Ftse Mib which updates the record since 2008 and breaks through the threshold of 35 thousand points, archiving the day increased by 0.96% to 35,151 points, driven by the banks. In no particular order the other European stock exchanges, with Madrid showing a strong rise, Paris and London showing a moderate increase and Frankfurt and Amsterdam slowing down.
While a decidedly positive quarterly season is about to end, the market is once again focusing on the topic of central banks, especially as regards the Fed.
Recent indications on prices have meant that hypotheses of a first rate cut at the end of the year (or even rates that will remain stable for the whole of 2024) have begun to circulate on the market. Today producer prices were higher than expected and Powell himself said that it is “probable” that rates will remain unchanged in the next meeting. All eyes are now on the consumer price data, with the market looking for signs of a slowdown in the ‘core’ numbers. The Milanese stock market, as mentioned, was dominated by the banks after French President Macron, in an interview with Bloomberg TV, opened up to cross-over mergers between banks in Europe. Bper rose by 5%, MPS by 3%, Banco BPM by 2.83%, also driven by Morgan Stanley. Sprint of Saipem (+3.1%) after the weakness of the day before and of Iveco (+3.12%). A minus sign for utilities with Terna at -1.78%, Italgas (-1.67%) after the accounts and for Hera (-0.8%) following the quarterly report. A2a bucked the trend (+0.5%) after the upward revision of the guidance. On the dollar currency falling after US producer prices: the euro rises to 1.082 against the greenback (from 1.079 at the previous closing). The single currency is also worth 169.27 yen (from 168.7), while the dollar/yen cross is at 156.46 (from 156.43). The price of oil fell following indications of inflation and while OPEC confirmed its production forecasts for the year. The June WTI is 78.12 dollars (-1.26%) and the July Brent at 82.46 (-1.13%). Natural gas in Amsterdam rose slightly to 29.73 euros per megawatt hour (+0.5%).
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(RADIOCOR) 14-05-24 17:41:20 (0674)NEWS,ENE,PA,IMM,ASS 3 NNNN
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