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(Il Sole 24 Ore Radiocor) – After having passed with momentum on the eve of the test of US inflation slightly higher than expected (+3.2%), the European stock markets recorded another positive session, with Milan gaining 0, 4% despite the fall of Erg (-4.9%). Investors continue to bet on an easing of monetary policy, with analysts saying they are confident of a first rate cut in June. Meanwhile, in January industrial production in the euro area fell by 3.2% compared to December and by 6.7% compared to the previous year, according to Eurostat data. The United Kingdom, on the other hand, saw a slight increase in GDP in January (+0.2%) with a decline of 0.3% on an annual basis.
Thus, Madrid closes at the top of the class with an increase of 1.6%, while London’s FTSE 100 also does well (+0.3%). Record day for the Frankfurt Dax which, despite ending the session at -0.02%, exceeded the 18,000 point threshold for the first time, only to then fall back below the quota reached. Record also for the Cac of Paris (+0.6%), which reached over 8,100 points. Amsterdam’s Aex is weak (-0.07%).
Wall Street mixed, the technology sector weighs
Wall Street closed mixed (+0.10%), after the rising session the day before and the record closing for the S&P 500, despite the slight rise in consumer prices. On inflation, further data will be published on Thursday 14 March and Friday 15 March, with producer and import prices. Analysts still believe that the Federal Reserve will start cutting interest rates in June: according to the CME Group’s FedWatch Tool, there is a 58.4% chance of a 25 basis point cut in June, versus 55 .2% from a week ago. Weighing on the indices is the technology sector with Nvidia Corp, Intel and Apple.
Erg down after the scores, Leonardo in the lead
In Piazza Affari, Erg slipped, ending the session with a decline of 4.9%, despite the good results for 2023 (+76% profit). What disappoints the market are the objectives for 2024. A2a is also down (-2.6%), after the quarterly report and the plan released the day before. Tim recovers at the end (+0.7%), on which the government has also raised its guard after the huge changes in volumes of the previous days. Leonardo closes at the top of the list (+3.4%), following the presentation of the plan to 2028 with objectives of alliances and acquisitions. Azimut (+3%) and the oil companies did well with Eni (+1.9%) and Tenaris (+0.9%). The banking sector was also positive, with Unicredit (+1.3%), after CEO Orcel opened up the possibility of new acquisitions and Intesa SanPaolo (+1.3%).
Spread at 122 points at the lowest since the end of 2021
Closing in decline due to the spread between BTp and Bund which benefits from the movement of Italian government bonds which consolidate the positive trend that has emerged over the past few weeks. According to traders, BTp are benefiting from the clearer scenario on rates in Europe and also from the long wave of the successful placement of BTp value which has confirmed the appeal of BTp among the vast audience of small Italian savers. Incoming flows on medium and long term maturities have thus narrowed the yield differential between the benchmark ten-year BTp and the German equivalent maturity which marked a last position at 122 basis points, at the lowest level since December 2021, from 127 points of the closing on the eve. The yield of the benchmark ten-year BTp was also decreasing, ending the session at 3.57% from 3.6% at the closing date the day before.