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Stock market: Europe slows down before US employment data. Wall Street closes well

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Stock market: Europe slows down before US employment data.  Wall Street closes well

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(Il Sole 24 Ore Radiocor) – European stock markets closed subdued after the recent rises, which led the indices to touch their highs. Investors have their eyes on the US labor market data, due tomorrow, December 8, hoping to obtain confirmation of the end of the restrictive cycle of American monetary policy. Eurozone GDP, however, slows down in the third quarter of 2023 (-0.1%). The Ftse-Mib in Milan closes at -0.67%, the Cac in Paris at -0.1%, as does the Dax in Frankfurt. London’s Ftse 100 scores -0.02%, Madrid’s Ibex is the worst at -1.1%; while the Aex of Amsterdam gains 0.02%.

In Milan the banks are down with Banco Bpm and Bper

Coming to the stocks, on Piazza Affari Saipem is the most penalized (-4.1%), with oil at its lowest level since June despite the partial recovery of the day. But it was above all the banks that recorded the most negative performances: Banco Bpm lost 3.9%, Bper, accredited as the first suitor for MPS, slipped by 2.7%, the same Sienese institution fell by 2.6%. StMicroelectronics posted a loss of more than 2%. The best of the day are Finecobank (+1.55%), Moncler (+0.85%) and Mediobanca (+0.78%).

Wall Street rises, subsidies data better than expected

Wall Street is rising, after closing lower the day before. Investors await the jobs report, due tomorrow, and the Fed’s next interest rate decisions, expected next week. Traders no longer believe that rates can be raised any further and are betting more and more (53.1%) on a first cut already in March. The Labor Department has meanwhile released the number of new requests for unemployment benefits: in the week ended December 2, increased by 1,000 units to 220,000, while expectations were for a figure of 222,000. Closing: Dow +0.17%, S&P 500 +0.80%, Nasdaq +1.37 percent.

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For economists, the ECB will cut rates from June 2024

Even in Europe, the ECB’s rate cut seems increasingly closer. According to a Reuters poll of 90 economists, it will arrive in the second quarter of 2024, earlier than previously thought. Around 57% of respondents expect at least one rate cut before the ECB Governing Council meeting in July. In light of the recent signals coming from members of the meeting, including Isabel Schnabel who seemed to take the possibility of new increases off the table given the clear weakening of inflation, the markets expect cuts of 150 basis points by the end of next year starting in March. Economists who took part in the survey instead take a more cautious line in the wake of the ECB mantra according to which rates will remain higher for longer.

Oil recovers slightly, gas also rises

Oil is trying to recover ground after slipping to six-month lows: January WTI is rising to 70 dollars a barrel, while February delivery for Brent is close to 75. Natural gas is also rising on the TTF platform of Amsterdam, with the price hovering around 40 euros per megawatt hour.

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