European stocks close higher
Milan Stock Exchange records a positive closure. The stock markets benefited from the data on American inflation, which fell more than expected and was at its lowest since May 2021, but the enthusiasm came at the end of the session. Also due to the slowdown on Wall Street which, starting off sharply, then lost share, with investors judging the data on prices still very high.
Piazza Affari which had reached up to +1.3%, then closed close to parity (+0.38%). Similar situation for Paris (+0.09%), Frankfurt (+0.31%), London (+0.5%), Madrid (+0.4%).
Fears for interest rates and expectations for the quarterly results
Investors are aware that the inflation figure is central to defining the Federal Reserve’s rate strategy: according to Ig Italia analysts, “the figures push for an upcoming pause in the rate hike process”. However, the interruption will not be in the next meeting in May but in the following one », namely the one in June. In fact, the forecast is that in May the institute led by Jerome Powell will opt for «a new increase in the cost of money by 25 basis points, bringing the reference rates to 5%-5.25%, in the wake of the persistence of inflation core at high levels”.
In Piazza Affari, as in the rest of the Old Continent, the banks are regaining share, while anticipation is rising for the start of the season of American quarterly reports (Friday it’s the turn of JpMorgan, Citigroup and Wells Fargo). Well Unicredit (+2.61%), Mps (+1.58%) and Bper (+1.95%).
Positive Iveco (+1.36%) in the wake of the record results of the Swedish Volvo which are driving force in the sector. Behind Stm (-1.74%), with the weakness of American technology.
CURRENCIES
The single currency strengthens against the greenback and touches 1.1 dollars for the first time since April 5, 2022, when it closed at $1.1005. The euro is now changing hands at 1.0995 dollars, against 1.0924 at the start and 1.0912 at the previous close. The single currency is also worth 146.425 yen (146.08 at the start, from 145.75), while the dollar/yen ratio is 133.23 (133.73 at the start, from 133.56).
Bitcoin defends the $30,000 threshold it crossed yesterday for the first time in 10 months and is worth $30,038, gaining almost 7% in the past seven days.
ENERGY
The price of oil rose with the drop in American stocks: WTI delivered in May +1.5% to 82.75 dollars a barrel, while Brent in June recorded +1.6% to 86.97 dollars.
In the end, natural gas on the TTF platform in Amsterdam fell by 1.8% to 42.9 euros per megawatt hour. Finally, spread down to 185 points, against 186 points at yesterday’s final, with the 10-year yield stable at 4.16%