European stocks closed mostly higher as Wall Street retreated as investors weighed central bankers’ latest comments and next monetary policy moves.
The Ftse Mib archives trades up by 0.16% to 27,160 points with purchases in particular on the oil companies Saipem (+6%), Eni (+1.8%) and Tenaris (+1.9%). Meanwhile, Brent has barely moved below 84 dollars, following the increase in US stocks that emerged from the Energy Information Administration’s weekly data.
Purchases also on Inwit (+2.1%) and on Telecom Italia (+1.9%), which awaits developments on KKR’s offer for the network, under examination by the Board of Directors on 24 February, and a possible CDP counteroffer.
On the other hand, Banco Bpm (-2%) fell after the publication of the results, as well as Prysmian (-1.4%) and Bper (-1.4%). Banca Mediolanum (+0.6%) also released the accounts, while Hera (-0.3%) approved the plan to 2026.
The macro agenda highlights the data on retail sales in Italy, which on a trend basis increase by 3.4% in value and record a decrease in volume (-4.4%).
On the bond market, the Btp-Bund spread barely moved to 187 basis points with the Italian ten-year yield rising to 4.23%. On Forex, the euro/dollar is almost unchanged at 1.072.
The US indices are down, in the aftermath of Powell’s intervention. The Fed chairman reiterated the need for more rate hikes but did not forcefully stifle investor optimism for an easing of monetary tightening, despite Friday’s better-than-expected job report that stoked the possibility of lingering pressure on wages.
However, today the president of the Fed Bank of New York, John Williams, said that there is still a lot of uncertainty about the inflation outlook, adding that if the situation were to change, the central bank could accelerate the pace of the tightening again compared to the latest hike of 25 basis points. Williams further noted that most officials expect a terminal rate of between 5% and 5.25%.