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(Il Sole 24 Ore Radiocor) – The end of the week in the red for the European stock exchanges. The already uncertain mood of investors for the performance of Asian stock markets (-0.8% Hong Kong and -2% Shanghai), between the performance of the Chinese economy and the woes of the real estate giant Country Garden, worsened with July US data on producer prices rose slightly beyond expectations. The +0.3% recorded in July (+0.2% core), while not representing a sensational surprise, confirms the difficulty of bringing inflation back despite the repeated moves of the central banks.
All major stock indexes hit lows after the release of the US statistics and then closed just short of those levels. Amsterdam was the most penalized (AEX) together with Paris (CAC 40) and London (FT-SE 100), thanks to the rise of the pound after the British GDP exceeded forecasts. Piazza Affari lost 1% in the FTSE MIB index. Brilliant Saipem thanks to the new 700 million dollar contracts, bad Stellantis on the fear that the confrontation with the American unions will lead to wage increases and an increase in costs.
In the whole week, Piazza Affari was the most penalized in Europe thanks to the crash on Tuesday 8 August following the government’s announcement of the new tax on the increase in the interest margin of credit institutions: the balance sheet of the octave is 1. 1%.
Wall Street contrasted, +0.3% US producer prices
After a slow start Wall Street is mixed. In July, producer prices increased by 0.3% over the previous month, against expectations for +0.2%. It was the largest increase since January. The “core” component – the one purged of the more volatile components represented by the prices of food, energy and commercial services – increased by 0.2% compared to the previous month, in line with expectations. Compared with a year earlier, prices rose 0.8%, up from 0.2% the previous month (revised from an initial 0.1%). The ‘core’ data recorded an increase of 2.7%, as in June. Consumer prices – released on Thursday – recorded a +3.2% in July compared to a year earlier, against expectations for a +3.3%, after the +3% of the previous month. The annual figure had not recorded an increase since June 2022. The “core” figure grew by 4.7%, after the +4.8% in June, against the +4.8% of expectations, but still far from 2 %, which is the Fed’s target; on the positive side, for the second consecutive month, the “core” figure grew by only 0.2% on a monthly basis, which has not happened for over two years. At the moment, expectations regarding the next Fed meeting, still more than a month away: according to the CME Group’s FedWatch Tool, there is a 90.5% chance that the US central bank will decide to hold rates interest rates fixed at 5.25%-5.5%; the day before, it was 86%.
US consumer confidence falls
In August, Americans are proving to be less optimistic about the economy than in the previous month. The preliminary confidence index drawn up monthly by the University of Michigan was equal to 71.2 points, after the 71.6 recorded at the end of July; expectations were for a rise to 71.7 points
FTSE Mib Stock Exchange performance
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In evidence Tim and Saipem, recover the banks
In Milan, Saipem was first in the class on Friday: with the new contracts, the orders obtained since the beginning of the year rise to 10 billion and could lead to upward revisions of the estimates for 2024, analysts say. Among the banks in evidence Bper, Banca Mps and Banco Bpm. Sales instead of Stellantis, which is affected by the uncertainty linked to the negotiations for contract renewals in the United States. Down Diasorin and Iveco Group. Unipol down on the day of the publication of the half-yearly accounts, Telecom Italia sluggish after the signing of the memorandum of understanding between the Mef and the Kkr for the offer on the network. Telecom’s main shareholder, Vivendi, welcomed the agreement as positive news and is asking for a serious dialogue to arrive at a solution to the group’s reorganisation.