Close up sharply for European stocks, supported by Wall Street after better-than-expected data on US inflation. In Piazza Affari, the Ftse Mib closed up by 1.75% to 28,552 points, with purchases above all on Stm (+4.8%), Prysmian (+3.3%), Interpump (+2.9%) and Diasorin (+2.9%), while Saipem falls (-1.1%).
Overseas, the S&P500 gained 0.9% and the Nasdaq 1.4% after consumer prices slowed year-over-year growth to 3.0%, with a core reading at 4.8%. The numbers, better than analysts’ estimates, should not displace forecasts of a 25 basis point rate hike in July, but fuel hopes of an early conclusion to the Fed’s restrictive cycle. Focus also on the Beige Book due out tonight and on the speeches by some exponents of the Washington institute.
Meanwhile, the Canadian central bank raised the cost of money by 25 bp to 5.0%, revising its inflation projections and postponing its return to 2% to mid-2025.
On Forex, the euro/dollar exceeds 1.11 and the dollar/yen continues its descent to 138.4, with the greenback down after the inflation report. Among the raw materials, oil (Brent) exceeded 80 dollars a barrel for the first time in over two months. On bonds, yields fell sharply with the two-year Treasury at 4.74% (-13 bp) and the ten-year at 3.87% (-10 bp). Spread Btp-Bund contracting by 14 bp to 168 basis points, with the Italian 10-year bond at 4.27%.