MILANO – Uncertain session for the European stock exchanges, which are looking at inflation data from the Eurozone in an attempt to see the next moves of the European Central Bank, for which analysts are now expecting a rate growth path that would lead to deposits at 3.75%. For now, prices in the UK beat expectations in March by climbing into double digits. The Fed’s path was different, with the market pricing in another 25-point hike in May, then a decline from July. On the quarterly front, after the disappointment of Goldman Sachs and Netflix (accounts online, but subscriber growth below expectations) which curbed enthusiasm, today all eyes are on Morgan Stanley and Tesla. The banks will still have to be followed in the business market, supported by the recovery of banking risk hypotheses. Eyes also on Telecom, after the new offers from Cdp and Kkr and on Saipem which has announced the two-year extension of the 280 million dollar offshore drilling contract in Santorini.
Shanghai ends in negative
The Chinese Stock Exchanges closed the session in negative territory: the Shanghai Composite index dropped 0.68%, to 3,370.13 points, while that of Shenzhen lost 0.57%, slipping to 2,126.51.
Uncertain openings for Europe
Weak and uncertain start for European stocks as investors weigh the latest comment from Federal Reserve officials. St. Louis Fed Chairman James Bullard said he favored a higher terminal rate of between 5.50% and 5.75%, while fellow Atlanta Fed Raphael Bostic said he sees another 25 basis point rate hike before a break. Investors also digested data showing UK consumer price inflation stood at 10.1% in March, down from 10.4% in February but above market expectations by 9.8%. Expect final eurozone inflation data for March, as well as earnings reports from big companies like Saipem and L’Oreal. In the first trades in London the Ftse 100 index lost 0.32% to 7,884.46 points, in Frankfurt the Dax dropped 0.22% to 15,848.15 points and in Paris the Cac40 advanced by 0.09% to 7,539.21 points . Piazza Affari rises by 0.03% to 27,899.84 points.
Tokyo closes lower after eight gains
Closing down for the Tokyo Stock Exchange with the Nikkei index losing 0.18% to 28,606.16 points. Mixed performance for the Asian markets given the wait-and-see attitude taken by investors awaiting the moves of the central banks. Australia’s S&P/ASX 200 gained 0.1% to 7,365.50, South Korea’s Kospi was flat at 2,573.58 and Hong Kong’s Hang Seng lost 1.2% to 20,410.16. The Shanghai Composite dropped 0.6% at 3,371.66. News of China’s economic growth accelerating in the recent quarter, to 4.5% a year, didn’t have much impact on stock prices. While consumption and retail sales have grown, other indicators, such as industrial production and investment in fixed assets, have been weaker and point to an uneven recovery.