Positive session for European stock markets on the day of Jerome Powell’s testimony to the US House. On Piazza Affari, the Ftse Mib closed up by 0.7% at 33,363 points, with Finecobank (+1.5%) in evidence after the February data on funding. Interpump (+1.5%), Terna (+1.4%) and Intesa (+1.4%) also performed well. Pirelli falls (-3.5%), with investors disappointed by the below-expected dividend, while realizations on Saipem start (-2.2%) after the rally of the last few sessions.
The spotlight today was on the president of the Fed, who confirmed his cautious tone on rate cuts, stating that the FOMC needs more evidence of a slowdown in inflation to avoid the risk of acting too soon.
From the macroeconomic agenda came the data on eurozone retail sales (+0.1% m/m in January) and ADP employment in the US private sector, slightly lower than estimates (140 thousand against 150 thousand of the consensus), while JOLTS report job postings remained high. The Fed’s Beige Book will also be released this evening. Meanwhile, the Canadian central bank has left rates stuck at 5%.
Also scheduled between tomorrow and Friday are the ECB meeting and American data on the labor market.
On bonds, the BTP-Bund spread contracts further to 132 basis points, with the yield on the Italian 10-year bond falling to 3.65% and that of the Bund to 2.33%.
Among raw materials, Brent oil recovers ground and approaches $84 a barrel, after a US report showing signs of increased demand for fuel. On Forex, the euro/dollar exchange rate rose to 1.09 and the dollar/yen to 149.4 yen per dollar.
Meanwhile, Bitcoin trades in the $66,700 area, after having updated its all-time high yesterday.