Home » European stock markets increase, Milan the best. Betting on rate cuts begins

European stock markets increase, Milan the best. Betting on rate cuts begins

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European stock markets increase, Milan the best.  Betting on rate cuts begins

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(Il Sole 24 Ore Radiocor) – European stock markets are traveling in positive territory, following the good performances recorded the day before with Piazza Affari which exceeded the threshold of 30 thousand points. The markets are driven by bets on a rate cut by the Fed and the ECB, which will meet on 13 and 14 December. Investors therefore expect a rate cut by the Eurotower as early as March and an overall reduction of 150 basis points for the whole of 2024. Similar are also the expectations for the moves of the Fed, which should lower US rates by 150 basis points with a first intervention in March.

The FTSE MIB of Milan, the CAC 40 of Paris, the DAX 30 of Frankfurt, the IBEX 35 of Madrid are moving slightly higher.

A Wall Street future in rialzo

Futures rising on Wall Street despite data on employment in the US private sector which increased less than expected in November. According to the monthly report drawn up by Automatic Data Processing (ADP), the agency that prepares pay slips, 103,000 jobs were created compared to the previous month, while forecasts were for the creation of 128,000 jobs. The September figure was revised from 113,000 to 106,000. Wages grew 5.6% year-over-year, the smallest increase since June 2021. Overall, services added 117,000 jobs, goods manufacturers lost 14,000. Specifically, the hospitality and entertainment sector lost 7,000 jobs, manufacturing 15,000, construction lost 4,000; trade and transport +55,000, education and health services +44,000.

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The trade deficit in the United States in October increased by 5.1% compared to the previous month to 64.3 billion dollars, against expectations for a figure of 64.1 billion; the September figure was revised from 61.5 billion to 61.2 billion, as announced by the Commerce Department. Exports fell 1% to $258.8 billion, imports grew 0.2% to $323 billion.

In the third quarter of 2023, productivity grew more than expected, while labor costs surprisingly fell. According to the final reading of the data released by the Department of Labor, the index grew at an annualized rate of 5.2% compared to the previous three months, against 4.9% of expectations and after the 4.7% in the preliminary reading. This is the largest increase since the third quarter of 2020. The previous quarter’s figure was confirmed at 3.6%. Unit labor costs decreased by 1.2%, against expectations for -0.9%, after -0.8% in the preliminary reading.

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