Table of Contents:
A positive start for European markets
Today saw a significant rise in European stock exchanges, driven by the positive opening of Wall Street. The US inflation data, which exceeded expectations, helped to create a climate of confidence among investors. In particular, the Ftse Mib in Piazza Affari closed with an increase of 1.5%, reaching 35,646 points. This upward trend was also supported by banks’ first quarterly results, which showed higher than expected performance
.
Performance of the companies in evidence
Among the titles in evidence, Iveco Group recorded an increase of 6%, thanks to a promotion by Kepler Cheuvreux, who raised the target price from 11 to 11.5 euros. Prysmian also saw an increase of 4.4%. However, not all companies have benefited from this positive climate: Saipem fell by 4.9%, due to difficulties in building a wind farm off the northwestern coast of France
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Analysis of inflation and impacts on the markets
The
US inflation data accelerated to 2.9%, but the core CPI recorded a monthly growth of 0.2%, lower than expected, leading to a surprising annual decrease to 3.2%. This more moderate reading has reduced the chances of a rate hike by the Fed, prompting markets to consider the possibility of a second cut later in the year. The report on British consumer prices also showed a decline, reaching 2.5%, contributing to a
climate of greater optimism.
Implications for the bond market and commodities
The inflation report also had a significant impact on the bond market, with the US Treasury falling by about 12 basis points to 4.67%. The Btp/Bund spread contracted at 113 basis points, with the Italian 10-year period at 3.68% and the German benchmark at 2.55%. In the commodities sector, Brent oil exceeded 81 dollars per barrel, supported by the reduction of world surplus forecasts by the IEA and the decrease in US crude inventories for the eighth consecutive week. Gold also remains above 2,680 dollars an ounce, while in the currency market the euro/dollar exchange rate fluctuates around
1.03.
Cryptocurrencies are recovering
Finally, among cryptocurrencies, Bitcoin has recovered ground, returning to 99,000 dollars. This recovery has been welcomed by investors, who see cryptocurrency as an attractive option in a context of economic uncertainty. The day therefore closes with an atmosphere of optimism, with investors looking with interest at the next economic and financial developments
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