The reaction of European markets
European stock exchanges closed in positive territory following the meeting of the European Central Bank (ECB), which announced a reduction in interest rates by 25 basis points. This intervention, expected by analysts, brought the deposit rate to 2.75%, signaling a more accommodative approach on the part of the ECB in an improving inflation environment. At Piazza Affari, the Ftse Mib ended the day with an increase of 0.16%, reaching 36,429 points.
Equity performance
Within the list, there were significant purchases in securities such as Iveco Group and Campari, both up 1.6%. However, not all the news was positive: the stock of STMicroelectronics fell by 10.75% due to disappointing financial results and an unencouraging outlook. The market reaction highlights the volatility and uncertainties that currently characterize
the European economic landscape.
Impact of the ECB’s decisions on the economy
The president of the ECB, Christine Lagarde, stressed that it is premature to discuss the neutral rate, reaffirming the importance of a data-based approach. This leaves open the possibility of further cuts in the next meetings, depending on the trend of inflation and economic growth. Eurozone GDP data showed an unexpected stagnation in the fourth quarter of 2024, with zero growth for Italy and contractions in Germany and France. These results highlight the challenges that Europe must face to stimulate economic growth.
Commodity and cryptocurrency trends
In the commodities market, Brent oil has recovered ground, reaching 76.3 dollars per barrel, while gold is approaching 2,800 dollars an ounce. On the cryptocurrency front, Bitcoin has surpassed 105,800 dollars, continuing to show resilience despite market fluctuations. These developments suggest that investors are seeking refuge in alternative assets in an environment of economic uncertainty
.
The prospects for the United States
In the United States, stock markets show mixed trends, with the Dow Jones and the S&P 500 positive, while the Nasdaq recorded a decline. The recent quarterly reports of companies such as Microsoft and Meta have shown mixed results, influenced by growing competition in the artificial intelligence sector. In addition, US GDP grew by 2.3% in the fourth quarter, lower than expected, while inflation rose to 2.3%. This data could influence the Federal Reserve’s future interest rate decisions.