MILAN. European stock exchanges on lead feet in the early stages of a session which will be characterized by expectations for the Fed’s decision on interest rates. The market expects a slowdown in the monetary policy tightening, despite inflation still not under control, due to the turbulence on the financial markets linked to the banking crisis. Fed Funds futures view a 25bp upside as likely at 87.8%, while maintaining the status quo is quoted at 12.2%.
In Piazza Affari, the Ftse Mib marks +0.13%, while in the rest of Europe Frankfurt rises by 0.16% and Amsterdam by 0.37%, with Paris down by a fractional 0.05%. Among the main Milanese stocks, after two days of rally following the rescue of Credit Suisse, which will be absorbed by Ubs, the race of banks stops, mostly slightly down: Mps drops 0.82% and B for 0, 25%. In the red Terna (-1.28%), while Hera gains 3.21% the day after the publication of the 2022 accounts. On the foreign exchange market, the euro remains strong at 1.0768 dollars from 1.0770 yesterday in closure.
The stock markets are flying, but after the Credit Suisse case it is the bondholders who are afraid: here’s why
Fabrizio Goria
The single currency is also worth 142.62 yen (from 142.38), while the dollar/yen ratio is 132.43 (from 132.22). On the energy front, oil fell after two rising sessions: WTI in May traded at 69.12 dollars a barrel (-0.79%), the same delivery on Brent at 74.77 dollars (-0.73 %). Natural gas prices in Amsterdam rose by 0.9% to 42.8 euros per megawatt hour.