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(Il Sole 24 Ore Radiocor Plus) – Cautious departure for the main ones European stock exchanges after a positive week for the Old Continent thanks to the driving force of quarterly earnings and with the rate hikes by the Fed and the ECB which took place as expected. The wait is for the data on inflation in the Eurozone for July which should slow down further, thus inducing the ECB to slow down its monetary tightening in parallel: the forecasts are for a reading of 5.3% for the annual change in consumer prices compared to the previous 5.5%. Asian stock markets are celebrating the new stimulus measures for the Chinese economy outlined by the Beijing government, in particular to stimulate consumption in the auto and real estate sectors: this is counteracting the weakness of Chinese manufacturing, which also suffered in July ( albeit less than expected), multiplying the signs of deflation in the main Asian economy.
In Milan the banks are running, Leonardo is down
Il FTSE MIB of Piazza Affari is little moved but falls Leonardo after the results of the first half and the strategic guidelines drawn up by the new CEO Cingolani. The banking sector is lively after the results of the stress test conducted by the EBA and the ECB: “The 2023 stress tests reported a very positive result for Italian banks, confirming the important improvements in terms of balance sheet, asset quality and operating performance achieved in recent years” underlines a Sim. Among the titles the best are Banca Mps, Banca Pop Er e Bank Bpm.
Asia up sharply thanks to Beijing stimulus
Asian stocks close sharply higher, following Wall Street’s rally on the eve. Investors estimate a drop in inflation and a global economic recovery for the second half of the year. Central bank decisions on monetary policy remain in the spotlight. Tokyo shines (+1.26%), with purchases concentrated on the technology sector and the automotive sector. Surprisingly, the Central Bank of Japan carried out a purchase operation on the bond market to curb the rise in ten-year yields (which jumped last Friday to their top since 2014). On the currency market, the yen is stable against the dollar at 141.70, and at 156.10 against the euro. With negotiations still ongoing, Hong Kong rises (HANG SENG), Shanghai (SHANGHAI STOCK EXCHANGE A SHARES INDEXs.
China slows down for the fourth consecutive month
Indeed, China’s manufacturing activity contracted for the fourth straight month, while growth in services and other sectors slowed further in July. The manufacturing purchasing managers’ index came in at 49.3, outperforming little expectations of 49.2 of the consensus. The non-manufacturing PMI, which includes sectors such as construction and agriculture, came in at 51.5. A reading below 50 indicates contraction, while a reading above 50 signals expansion.
Japan’s retail sales increased by 5.9% year on year in June. This was announced by the Japanese government. In the large-scale distribution segment alone, retail sales rose by 4.1% on a year-on-year basis. In Germany, on the other hand, June retail sales fell by 0.8 percent.