MILANO – European markets move higher, despite fuzzy futures, in the aftermath of the US Federal Reserve’s second consecutive 75-point rate hike.
As Abn Amro analysts note, the Monetary Policy Committee has changed its communications strategy by blurring the contours on the size of the next hikes. The reading was twofold. On the one hand, after this umpteenth strong squeeze, the trend of the data will guide the moves of the Fed, struggling with the highest inflation in 40 years. Given that the current rate level is very close to what is considered the neutral rate (2.25-2.5%), the Fed is now more comfortable and does not have to tie its hands to super hikes in the future: it does not feel more “around the curve” and now he will be able to assess the adequacy of his policy from time to time, “commented Elliot Clarke, Westpac’s senior economist.” Moving forward – suggested Rajesh Nakadi, investment manager at Bny Mellon Wealth Management – if we expect rates to depend on data, this will likely mean that in upcoming Fed meetings, “there will be more graduality on rates. And indeed the Nasdaq yesterday recorded a very strong rally. But, on the other hand, the markets still have read some hawkish nuances in the position of President Powell who wanted to emphasize that “unusually large” steps such as those of yesterday can again be made.
In light of these reflections, a mixed day is expected on the main European stock exchanges.
Attention now turns to today’s data on US GDP for the second quarter, estimated to be slightly up, even if the model of the Atlanta Fed expects a decline of 1.6% cyclical which, if confirmed, would determine a technical recession in the States. United. Also today, US President Joe Biden and Chinese President Xi Jinping will talk by phone to try to ease the tensions related to the trip to Taiwan of the Speaker of the US House, Nancy Pelosi. And in the evening the quarterly reports of two super big names like Amazon and Apple are expected, in a context in which the rise in prices is negatively impacting consumption, especially high-end ones.
Tokyo closes slightly higher: + 0.36%
The Tokyo Stock Exchange closed the trading slightly higher. The Nikkei finishes adding 99 points (+ 0.36%), for a total of 27,815.48 points.
Gas, after the records the price fluctuates on 200 euros
The price of gas fluctuates around 200 euros per megawatt hour. After briefly falling to 197 euros, it has risen again but without tears and now in Amsterdam it trades at 201 euros. In the past few hours, the European reference had set new historical records above 220 euros, in the wake of the new squeezing of Gazprom’s taps and concerns about a total stop of Russian supplies.
Bags, Milan starts well
Positive start of session for the stock market which exploits with the European stock exchanges the effect generated by the Fed and in addition the wave of good quarterly data. The Ftse Mib index marks + 1.10% at 21,716 points, a better figure than the other markets. Yesterday the Federal Reserve, as expected, raised rates but President Powell has issued calming messages on future hikes. Today there is also a great deal of space in the accounts of listed companies, with good results for Stellantis (+ 3.8%) which makes record profits; in the Iveco group + 1.4%. Stm (+ 2.5%) and Moncler also did well, rising by 5.1%. Accounts aside, Exor earns 1.9% and Cnh 1.5%. Among the Mediobanca banks + 1.1% awaiting the balance sheet tomorrow; on Intesa (+ 1.3%), Bpm (+ 1.2%), Unicredit on + 0.6%. Discounts for Campari and Nexi. Among the other blue chips, Pirelli rose by 2%, Unipol + 2.4%.
Spread stable at 248, but BTP yields rise
Stable start after yesterday’s consistent rise in the Spread between BTPs and Bunds on the secondary market, following the downward revision by S&P of the Italian outlook to “stable” from “positive”. At the beginning of trading, the differential is indicated at 248 basis points, the same value as before, while the yield of the Italian 10-year period still rises to 3.48% from 3.41% at the last reference.
Oil rises, Wti towards $ 100
Oil futures contracts further up in today’s trading after gaining Wednesday. The WTI marks an increase of 1% to 98.24 dollars a barrel, while the Brent rises by 0.7% to 107.34 dollars. Falling crude oil inventories and a rebound in US gasoline demand supported prices, while fears of a recession eased in the market.
Future deboli su Wall Street
US stock futures contracts down early trading on Thursday, after yesterday’s strong rally. The Dow Jones contract is down 0.15%, the S6P 500 is down 0.27%, the Nasdaq is down 0.46%.
Euro down against the dollar at the opening
Euro slightly gains against the dollar in early morning trading. The common currency hit 1.0221, up 0.2%, in the aftermath of the Fed’s decision to hike rates as President Powell signaled future caution. The euro, on the other hand, drops 0.7% against the yen at 138.27, while the dollar / yen is at 135.25 (-0.9%).
Mixed futures on Europe
Mixed trend for futures contracts on the main European exchanges. The Frankfurt Dax contract is up 0.42%, while the London Ftse 100 futures drop 0.20%.