Positive day for European stock exchanges, but not for Piazza Affari, which closed in red held by a group of stocks. However, a blue chip jump stands out on the list, closing the session with a gain close to 12%.
The interest rate policy returns to the center of attention of operators. In the United States, there are fears that the Fed may abandon gradual intervention at the next meeting. Analysts estimate a possible increase in the cost of money of three-quarters of a point, or 0.75%.
The US economy continues to function. According to World Bank data, US GDP is expected to increase by 3.7% by 2022. The job market for now seems to confirm the health of the stars and stripes economy. Last week, there were 184,000 applications for new unemployment benefits. The number is higher than the 180,000 forecast by analysts’ consensus, but lower than the 186,000 the previous week. This number is the lowest in 53 years.
On this side of the Atlantic, traders fear that the ECB could start raising rates well before the fourth quarter. The sharp rise in inflation leads more than one analyst to hypothesize that the first adjustment may also take place in June. Today, the president of the European Central Bank seems to indirectly support this hypothesis. Christine Lagarde, in a press release, said that the ECB’s monetary policy will depend on the input of macroeconomic data. This means that if the upcoming data confirms inflation is still high and a recession is unlikely, then the rate hike could be close.
Stock exchanges despise the danger of interest rates and in Piazza Affari a rain of money pushes this stock by 12%
European equity markets are not too worried about this eventuality. The prices of the Old Continent’s stock markets continued to rise today, after yesterday’s good performance, but slowed down at the end. Wall Street’s uncertain start saw prices pull back from the day’s highs and pushed the Italian list lower. At the end of the session, the Euro Stoxx 50 index closed up 0.8%. The Paris stock exchange performed better, gaining 1.3%. The polls, which make Macron’s re-election more likely, positively influenced the operators. The German stock exchange closed with a rise of close to one percentage point, while the London stock exchange closed the trading session practically unchanged.
If the stock exchanges ignore the danger of interest rates, the Milan stock exchange, on the other hand, is worse than the main lists on the Old Continent. Ftse Mib (INDEX: FTSEMIB) closed down 0.3% after being in positive territory for the entire session. At the end of the day, prices stopped at 24,805 points.
Saipem’s 11.8% rise wasn’t enough to keep Piazza Affari afloat, weighed down by too many utilities stocks. Energy stocks jumped thanks to quarterly accounts released today, which were better than expected. The market especially liked the loss data, which was lower than analysts estimated.
Deepening
The point about the markets