The current situation of European stock exchanges
European stock exchanges are experiencing a period of weakness, with the Ftse Mib in Piazza Affari falling by 0.1%, closing at 34,697 points. This trend is the result of a combination of factors, including company quarterly reports and central bank monetary policy expectations.
In particular, the market is closely monitoring the financial results of key companies such as Stellantis and Stm, which have shown positive performance, with an increase of 3% and 1.8% respectively.
Christine Lagarde’s statements
Christine Lagarde, president of the European Central Bank, recently expressed satisfaction with the slowdown in inflation in Europe. This is a positive sign for investors, as a fall in inflation could lead to more favorable monetary policies. However, market operators remain cautious, waiting for the data on the PMI indices that will be published tomorrow, which will provide further indications on economic growth. The situation is further complicated by geopolitical tensions in the Middle East and the upcoming elections in the United States, which could influence global economic decisions
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Monetary policy expectations
In the United States, expectations for monetary easing by the Fed have stalled, thanks to solid macroeconomic data. This has led to increased attention on central bank monetary policies, with Canada’s central bank recently cutting interest rates by 50 basis points. This move was welcomed, as Canadian inflation returned close to the 2% target.
In Europe, the yield differential between BTPs and German Bunds contracted to 121 basis points, with the Italian 10-year yield set at 3.53%.
Fluctuations in commodity markets
In the commodities market, the price of Brent oil fell below 75 dollars per barrel, while gold registered a decline, slipping to 2,710 dollars an ounce, after reaching an all-time high of 2,758 dollars. These fluctuations are indicative of a volatile market, influenced by global factors and economic expectations.
In the currency market, the euro/dollar exchange rate remains below the 1.08 threshold, while the dollar/yen approaches 153.