Colorless closing for the main European stock exchanges, with the Ftse Mib of Piazza Affari almost unchanged (-0.03%) at 33,736 points. Money on MPS (+5.1%), driven by speculation on possible M&A operations in the wake of the proposed merger in Spain between BBVA and Banco Sabadell. Ferrari (+2%) and Pirelli (+2.1%) also did well, while Stellantis (-4.3%) continued to lose ground, held back by revisions to analysts’ estimates after the weak first quarter data. STM (-3.7%) and Diasorin (-3%) also fell.
The OECD today released its updated economic outlook, forecasting world GDP growth of 3.1% this year and 3.2% in 2025. For Italy it estimates +0.7% this year and a +1.2% for next year. Meanwhile, the Italian manufacturing PMI in April showed a slowdown to 47.3 points from 50.4 in March.
American data released today showed an increase in unit labor costs, fueling concerns about inflation, awaiting the jobs report due out on Friday which predicts 240,000 new jobs in the non-agricultural sector.
All this, the day after the Fed meeting, which confirmed rates and essentially ruled out an increase. However, Powell and colleagues could leave borrowing costs at restrictive levels if there is no progress on the pricing front.
On the corporate results front, Apple’s quarterly report is expected this evening after the markets are closed, with a focus on the situation in China and any developments on the AI front. Qualcomm, the world‘s largest seller of smartphone processors, surged on optimistic forecasts while eBay tumbled on disappointing prospects.
On bonds, the BTP-Bund spread narrows slightly to 131 basis points, with the Italian ten-year bond at 3.87% and the Bund at 2.55%.
Among raw materials, Brent oil stabilizes at 84.5 dollars a barrel after the decline fueled by the increase in American inventories, while gold is in the area of 2,300 dollars an ounce.
On the Forex, the euro/dollar exchange rate fluctuates around 1.07 and the dollar/yen has shrunk to 153.6, suggesting a possible intervention by the Japanese authorities to support the local currency.