Closing of European stock exchanges
The European stock exchanges closed slightly, with a slight increase following the decisions of the European Central Bank (ECB) and the statements of President Christine Lagarde. At Piazza Affari, the Ftse Mib closed up 0.4%, reaching 34,857 points. Among the best performing stocks, Brunello Cucinelli saw an increase of 8% after revising its revenue forecasts upwards, now expected to grow between 11% and 12% compared to the previous 10%
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The decisions of the ECB
The ECB has decided to reduce interest rates by 25 basis points, removing the previous statement regarding sufficiently restrictive rates. This change marks an important evolution in Eurozone monetary policy, with Lagarde highlighting the downside risks for the economy. The president reiterated that the fight against inflation has not yet been won and that monetary policy will remain restrictive for the time being. In addition, growth forecasts were lowered until 2026, creating concerns among investors
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Market and raw material trends
Following the statements of the ECB, European government bond yields, in particular those of peripheral countries, have soared. The spread between BTP and Bund widened to 113 basis points, with the Italian 10-year yield rising to 3.32%. In the commodities market, Brent oil returned below 73 dollars per barrel, while gold depreciated to 2,680 dollars an ounce. On the currency front, the euro/dollar exchange rate stands at 1.05, while the dollar/yen remains stable at 152.2. Finally, in the cryptocurrency world, Bitcoin continues to remain above 101,000 dollars
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Future Perspectives
As the Federal Reserve meeting, scheduled for next week, approaches, analysts expect a possible cut in the interest rate by 25 basis points. This scenario could further influence European markets, which are waiting for clearer signals on the direction of monetary policy. Investors will need to closely monitor upcoming communications from central banks, as the decisions taken could have a significant impact on financial market trends and the global economy.