Milan is the worst with Madrid, the index loses contact with 27,000 points, Frankfurt also in a clear loss. Investors cautiously awaiting Fed interest rate decisions tomorrow night
The main European stock indexes worsened sharply in the final part of the session with losses greater than one percentage point and Milan and Madrid bringing up the rear. The banking sector had initially reacted positively to news that JP Morgan (NYSE:) had won control of First Republic Bank, but then turned negative along with energy, weighed down by the sharp decline in oil prices.
In the first part of the session, investors had mainly watched to inflation in the Eurozone and in particular to the core figure, which does not take into account energy and food, which fell from 5.7 to 5.6 percent. A positive figure which partially compensated for the indices of purchasing managers in April which fell from 47.3 to 45.8, the minimum for 35 months and below the 50 level, which marks the watershed between the contraction and expansion of the economy.
Investors are cautiously awaiting the decisions to be announced tomorrow evening after the markets are closed by the Fed, which expects another hike limited to 25 basis points, which however could be the last before a pause for reflection. Thursday will be the turn of Bcefrom which markets expect him to go ahead with rate hikes.
At individual stock level, StMicroelectronics e Campari (BIT:), while on the opposite side they move Saipem (BIT:), Tenaris (BIT:) and Eni (BIT:), weighed down by a price of heavy oil decline by over 4% in both the version and . The euro was also weak, losing 1.10 against the dollar.
** This article was written by FinanciaLounge