Contrasted closing for the European lists, while Wall Street continues to decline after the words of Jerome Powell. In Piazza Affari, the Ftse Mib ends up fractionally (+0.1%) to 27,609 points, with purchases above all on Unicredit (+3.3%), driven by yesterday’s statements by CEO Orcel, Tenaris (+3.2% ) and Saipem (+2.6%). Down instead Stm (-2.3%), Moncler (-2%), A2a (-1.8%) and Recordati (-1.8%).
In his testimony to the US Congress, the Fed chairman reiterated that higher interest rates will be needed to counter inflation. The chairman specified that decisions will be taken from time to time on the basis of all incoming data and their implications in terms of inflation and economic activity, as well as risks. Markets now almost certainly price in a 25 basis point increase in the cost of borrowing in July.
In Europe, Isabel Schnabel, a member of the ECB, highlighted the importance of monitoring wage trends to control pressure on prices.
In the United Kingdom, on the other hand, expectations are rising for tomorrow’s meeting of the Bank of England, after the data on consumer prices. UK inflation was stable in May at 8.7% year on year, with the core figure even rising from 6.8% to 7.1%.
On Forex, the euro appreciates at 1.095 dollars, while the exchange rate between the greenback and the yen fluctuates around 142. Among the raw materials, oil (Brent) exceeds 77 dollars a barrel. On bonds, the Btp-Bund spread remains almost stable at 160 basis points, with the Italian 10-year bond at 4.03%.