Negative ending for the European stock exchanges, in a context of selling on stocks on the eve of the Fed. On Piazza Affari, the Ftse Mib ends with a decline of 1.6% at 33,746 points, with Stellantis (-10.1%) at peaked after first-quarter revenue and delivery figures fell 12% and 10% respectively, while CFO Natalie Knight announced margin pressures in Europe. Iveco Group (-3.2%) and Saipem (-2.3%) were also subdued while Finecobank (+1.65%) and Bper (+1.5%) advanced.
Eurozone inflation data confirmed consumer price growth at 2.4% per year, in line with March, while the core index fell less than expected, from 2.9% to 2.7%. Good news from first quarter GDP, up by 0.3%, which signals a tenuous recovery for the bloc’s economy after the weakness at the end of 2023. In Italy, inflation fell to 0.9% (1% the harmonized data) and the GDP grew more than expected, by 0.3%.
Wall Street is also in the red after the latest data which highlighted a collapse in consumer confidence and persistent wage pressures, close to the Federal Reserve meeting. Operators will listen carefully to the words of President Jerome Powell, to understand the residual chances of rate cuts in 2024. Also waiting for the accounts of Amazon and Apple, respectively tonight and Thursday with markets closed, in addition to the report on the labor market out this Friday.
On bonds, the BTP-Bund spread remains at 132 basis points after yesterday’s decline, with the Italian ten-year bond rising to 3.90% and the Bund at 2.58%.
Among raw materials, Brent oil slips below 87 dollars a barrel and gold dips below 2,300 dollars an ounce. On the Forex, the euro/dollar exchange rate trades just below 1.07 and the dollar/yen stands at 157.5 amid growing speculation about an intervention carried out by the Japanese authorities to support the local currency.