Mostly negative ending for European stock markets, on the eve of the ECB meeting which could lead to a new rate increase or a pause. On Piazza Affari, the Ftse Mib closed down by 0.36% at 28,481 points, with sales in particular on Cnh (-2.7%), Interpump (-2.2%) and Italgas (-1.5%) . In contrast, MPS (+3%), A2A (+1.7%) and BPER (+1.65%).
Anticipation is growing for tomorrow’s Eurotower meeting and for President Lagarde’s subsequent press conference.
Meanwhile, US inflation shows mixed signals, with a core index growing by 0.3% monthly and 4.3% annually, still far from the 2% target, while headline inflation rises back to 3.7 %. The Fed could suspend the restrictive cycle in September, while keeping open the possibility of new increases. Also to be followed tomorrow is the data on the producer price index in the USA.
On the Forex, the euro/dollar moves little in the 1.073 area while the dollar/yen moves around 147.5. Among raw materials, oil (Brent) maintains the gains accumulated in recent sessions, remaining above 92 dollars a barrel.
On European bonds, the BTP-Bund spread widened to over 179 basis points, with the Italian 10-year bond still rising to 4.45%.