MILANO – European stock exchanges started to decline in the last session of the week on a day still affected by the heavy American inflation data released yesterday. The prices in January rose by 7.5% on an annual basis reinforcing the belief among investors that a rate hike by the Fed is imminent, starting in March. Yesterday Wall Street closed sharply in the wake of this scenario and in particular on the words of James Bullard. On Blooomberg News, the chairman of the St. Louis Fed said he was in favor of an interest rate hike of 50 basis points in March – which would be the first since 2000 – and a full percentage point by the beginning of. July, in response to the highest inflation in 40 years.
Indications that therefore lead investors to be very cautious. In Europe, the indices are falling as mentioned. The Ftse Mib recorded -1.23% at 26,898 points, while Frankfurt starts trading at -0.62%, London marks -0.75% e Paris -0.75%. Same trend in Asia, where Tokyo was closed today for holidays.
Meanwhile, the growth of the spread continues. The BTP and Bund differential opens up to 162 points, compared to 160 points at yesterday’s closing. The yield of the Italian 10-year rises to 1.9%, compared to 1.887% on the eve of the day. The phase of weakening of the euro against the dollar also continues. The single currency opens lower below $ 1.14 and changes hands at $ 1.1376 after yesterday’s swing session. Euro also down against the yen at 132.05 and the dollar yen at 116.05.
Oil prices drop. The American WTI with delivery in March falls by 0.7% to 89.25 dollars a barrel, while the Brent marks a decline of 0.9% to 90.58 dollars