European stock exchanges start above parity, with Milan’s Ftse Mib up 0.4% to 27,400 points. Purchases on Moncler (+1.3%), Telecom Italia (+1%) and Campari (+1%), while Leonardo (-0.6%, Bper and Banco Bpm (-0.5% both) are losing ground).
In the bond segment, the Btp-Bund spread stood at 188 basis points with the yield on the Italian 10-year bond slightly above 4.3%. On Forex, the euro/dollar exchange rate remains below 1.06 while among raw materials oil is advancing, with Brent again at 83 dollars a barrel.
The worst-than-expected data on German GDP came from the macro agenda, down by 0.4% in the fourth quarter. Attention will focus today on the US core PCE, a measure closely monitored by the Fed to gauge inflation. Any acceleration would strengthen the prospect of rates at restrictive levels for longer.
Meanwhile, the new governor of the Bank of Japan, Kazuo Ueda, made his first appearance in Japan. Kuroda’s successor defended his current dovish stance and the Nikkei closed up 1.3%, while the consumer price data accelerated to 4.3% on the year, with the core reading at 4 ,2%.