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Negative trend of European stock exchanges
Today saw a sharp decline in European stock exchanges, with the Ftse Mib closing at -1.2% at 34,315 points. Among the most affected stocks, Bper recorded a decline of 2.7%, followed by Nexi at -2.55% and Eni at -2.4%. In contrast, some stocks such as Brunello Cucinelli (+0.3%) and Stm (+0.4%) have shown some resilience. This negative trend was influenced by several economic factors, including expectations for Federal Reserve decisions
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Expectations for the Federal Reserve
Investors are waiting for the Federal Reserve‘s resolutions, which will meet tomorrow evening. Retail sales in the United States exceeded expectations, registering an increase of 0.7% in November, while industrial production showed a decline for the third consecutive month, falling by 0.1%. A cut of 25 basis points is expected at tomorrow’s meeting, but traders will be particularly attentive to Powell’s dot plots and press conference, which could provide guidance on future monetary policies, especially for 2025
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European economic indicators
Today, the German Ifo and Zew indices for December were also published. The Ifo index showed a deterioration in expectations and sentiment, while the Zew index showed an improvement to 15.7 points. In the United Kingdom, wage growth accelerated in the quarter ended in October, raising concerns for the Bank of England, which will meet on Thursday to discuss monetary policies. These developments could influence central bank decisions and the market in general.
Bond markets and commodities
In the bond market, the Btp-Bund spread is around 115 basis points, with the Italian 10-year yield at 3.38% and that of the German benchmark at 2.23%. On the commodities front, the price of Brent oil slipped below 73 dollars per barrel, while gold fell to 2,637 dollars an ounce. These movements in the commodity markets could reflect global economic uncertainties and interest rate expectations
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Situation in the cryptocurrency market
In the cryptocurrency market, Bitcoin stands at around 107,000 dollars, showing some stability despite fluctuations in traditional markets. Investors are closely monitoring economic news and central bank decisions, which could have a significant impact on this sector as well. The next Bank of Japan meeting on Thursday will be another key event to follow.
