The last session of the week kicks off in the name of caution for the main European stock exchanges, with investors digesting the indications arrived yesterday from the European Central Bank (ECB) and looking at the expected data on US inflation coming out in the afternoon Italian. In the first few minutes of trading, the Old Continent lists move slightly, with the Dax and the Cac40 showing a decrease of 0.17% and 0.05% respectively, while the Ftse 100 records a slight decline of 0, 08 percent.
Yesterday, the ECB outlined the path it intends to pursue starting from July to combat galloping inflation. The Governing Council, as expected, formalized the end of QE at the beginning of July and the intention to raise rates in the next meeting and continue to revise the cost of money upwards in subsequent meetings. In particular, the central bank intends to raise key ECB interest rates by 25 basis points at its July meeting.
Meanwhile, attention will be paid today to the publication of the US inflation data for the month of May, which should show a new increase (Consensus Bloomberg at 0.7% m / m and 8.3% y / y), also at core (0.5% m / m, 5.9% y / y). Data that should support, according to experts, a further 50-point rate hike at the Federal Reserve (Fed) meeting next week. At a macro level, important indications came from China this morning.
In May, Chinese inflation measured by the consumer price index (CPI) rose at an annual rate of 2.1%, less than the + 2.2% expected by the consensus. On a monthly basis, inflation fell by 0.2%, less than the expected -0.3% and slowing compared to the previous rise of 0.4%. China’s inflation as measured by the producer price index jumped 6.4% year-on-year, in line with expectations and slowed from previous growth of 8%. On a monthly basis, the trend was an increase of 0.1%.
Italian industrial production is also among the data on the agenda today. Finally, the decisions of the Russian central bank and the US data on consumer confidence prepared by the University of Michigan (preliminary June) should be monitored.