There was little movement in the session for European stock markets on the day of the key data on the US core PCE, the inflation measure preferred by the Fed. On Piazza Affari the Ftse Mib ended slightly up (+0.26%) at 30,353 points. Purchases on Banco Bpm (+1.2%), Mps (+1%) and Mediobanca (+1%) while Amplifon retreats (-0.9%).
Wall Street continues to rise slightly, after the American report which highlighted a slowdown in the underlying personal consumption price index to 3.2% in November, from 3.4% in the previous month. The progressive decline in inflation, combined with resilient demand, strengthens the prospect of a soft landing for the US economy and fuels bets on rate cuts by the Fed. At the moment, the markets are discounting six reductions from 25 bp over the next year.
Also in the USA, the University of Michigan sentiment index shows an improvement to 69.7 points, but the 1-year inflation outlook remains unchanged at 3.1% and the 5-10 year inflation outlook rises slightly to 2. 9%. In Italy, consumer and business confidence recorded an improvement in December, with the respective indicators rising to 106.7 and 107.2 points.
In the coming days, the macroeconomic agenda will be lacking in ideas in conjunction with the holidays. European stock markets closed on Monday and Tuesday, while Wall Street will be open on December 26th. Only Spain’s inflation and some data on the US real estate market, as well as unemployment benefits, should be followed.
On bonds, the Bund’s yield stood at 1.96% and that of the BTP at 3.53%, with a spread decreasing to 156 basis points. The US 10-year Treasury rose to 3.9%.
On Forex the euro/dollar remains at 1.10 and the dollar/yen at 142.4. Among raw materials, Brent returns to 79 dollars a barrel but is preparing to end the week on the rise in the wake of the attacks on ships in the Red Sea.