Home » Averted danger for the markets, Wall Street rejoices after inflation reports. The banks fly to Piazza Affari

Averted danger for the markets, Wall Street rejoices after inflation reports. The banks fly to Piazza Affari

by admin

Sigh of relief on the markets that feared a new surge in US inflation. The report released by the US Department of Labor instead highlights more moderate inflationary pressures in July, especially looking at the core component. The reaction of the markets was not long in coming with Wall Street which opened with Dow Jones and S&P 500 updating the all-time highs, while Piazza Affari has been sailing on the top since 2008 with a daily progress of 1%.

Price pressures are relieved

The US consumer price index rose 0.5% mom in July and 5.4% from a year ago, according to data from the Department of Labor. Excluding the volatile food and energy components, the so-called core CPI increased by 0.3% compared to the previous month and by 4.3% since July 2020. The monthly change in the core component is lower than expected (consensus was +0.4 %) and definitely lower than the + 0.9% m / m recorded in June. Indications that point in the direction of a further slowdown in prices in the coming months with investors continuing to give credit to the Fed’s mantra that the jump in inflation is a transitory phenomenon.

Stable Treasury rates, new highs for DJs and S&P 500

The 10-year Treasury yield is now substantially stable at 1.34% after the bullish trend of recent days also fueled by hawkish statements by some Fed members who had fueled the expectations of a start of tapering by the end of the year.

On Wall Street the Dow Jones index marks a progress of about 120 points to 35,382 points (+ 0.34%), on the new all-time highs. Less marked rise for the S&P 500 (+ 0.21%).

See also  Aspiring diplomats: a new advanced training course from Naples

Shore to the optimism of the markets also comes from US Senate green light for the $ 1 trillion infrastructure plan. Yesterday the vote in favor marked a significant victory for President Joe Biden and now the green light of the House seems a formality since the majority is Democratic.

Buzzi the best in Milan, even the banks run

Among the Milanese blue chips it is moving well up today Buzzi (+ 3% to € 22.6) which benefits from the green light for the US infrastructure plan. Banks are also very good (+ 2.35% Banco BPM, + 1.9% Unicredit, + 1.8% Bper and + 1.1% Intesa). In general, today the whole banking sector is doing well with the accounts of ABN Amro that have shown the return to profit and the payment of the dividend.

I also shoot for Telecom Italia + 2.4% in the 0.39 euro area. Over + 2% also for Recordati, Prysmian and Interpump.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy