Home » European stock exchanges up, the market wonders about the Fed. Pirelli slows down in Milan

European stock exchanges up, the market wonders about the Fed. Pirelli slows down in Milan

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After an uncertain start, the European stock exchanges are taking the path of rises more decisively. This is because, while the markets try to interpret the messages sent by the Federal Reserve leaders on inflation and quantitative easing, in the Old Continent the ECB has tried to give reassurance. In the economic bulletin, the Eurotower stressed that premature withdrawal of support measures would weaken the recovery. Furthermore, according to Eutotower, price pressures will remain contained overall and the risks on growth prospects are balanced. The ECB therefore anticipates that Eurozone GDP will return to pre-Covd levels in the first quarter of 2022.
Precisely the uncertainty on the action of central banks and the partly conflicting signals from the Fed, which had not reassured the markets on the eve, still invite investors to be cautious. In this context, the European indices are all in positive territory, the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 30 in Frankfurt, after the largest increase in the forecasts of the Ifo index on German business confidence (101.8 points in June), the IBEX 35 in Madrid, the Ftse 100 in London and the AEX in Amsterdam. Waiting now for the Bank of England, which will make rate decisions.

Markets try to interpret the Fed’s stance

After Federal Reserve Head Jerome Powell returned to downplaying inflation risk, Dallas Fed Chairman Roberto Kaplan said economic recovery would reach the threshold foreseen for the start of tapering, the phasing out of support measures sooner than many expect. Vision confirmed by the head of the Atlanta Fed, Raphael Bostic, according to which the central bank may decide to slow down asset purchases in the coming months. Thus, net of the fact that the American indices are close to all-time highs, investors are still nervous, unable to understand if the inflation spike either momentary or structural.

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Pirelli down with Goldman downgrade, good St

Among the Milanese stocks with higher capitalization, Pirelli & C is at the bottom of the Ftse Mib after the analysts of Goldman Sachs have lowered the recommendation on the stock by recommending to sell the share. On the other hand, Davide Campari, Diasorin and Cnh Industrial did well. You also shop on Stmicroelectron, which has announced a partnership with Tower Semiconductor under which St will host Tower in the 300mm Agrate R3 factory currently under construction at its Agrate Brianza site.

Oil on the highs of 2018

Among the raw materials to be monitored is oil, which in the last few hours has risen to the levels of 2018, constantly rising both due to the restart of the world economy and also due to the accelerated transition that many areas are adopting towards renewable energy.
Futures rose after the c at or above expectations of American reserves confirmed the recovery of global energy demand: the August future on WTI gains 0.48% at 73.43 dollars a barrel, while the similar delivery on Brent rises by 0.43% to 75.51 dollars.

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