Table of Contents:
Current situation of European stock exchanges
The European stock exchanges opened the session with caution, in a context of uncertainties related to the recent American elections and the Federal Reserve meeting. In particular, the Ftse Mib in Piazza Affari positioned itself as the rear end, recording a decline of 0.7% to 33,740 points. Among the most affected stocks, there are Iveco with a decrease of 2.7%, Stellantis at -2.6%, and Banco Bpm at -2%.
On the contrary, some stocks such as Pirelli and MPS showed signs of recovery, gaining 2.3% and 1.7% respectively after the publication
of their quarterly results.
Impact of Fed decisions
Yesterday, the Federal Reserve announced an interest rate cut by 25 basis points, as widely expected by analysts. The president of the Fed, Jerome Powell, reassured the market about the stability of the institution, stating that he is ready to defend the Fed from political pressure, especially following the re-election of Donald Trump. Powell stressed that the next president of the United States will not have the power to fire him or other senior Fed executives, a clear message aimed at maintaining investor confidence
.
Economic Indicators and Commodity Markets
Today is poor in significant macroeconomic insights, with the focus on data on industrial production and retail sales in Italy, in addition to the confidence of US consumers measured by the University of Michigan. Meanwhile, yields on European bonds are falling, with the Btp-Bund spread standing at 128 basis points. The Italian 10-year period saw a decrease of 3.67%, while the German benchmark was 2.39%.
As far as commodities are concerned, Brent oil fell below 75 dollars per barrel, while gold lost ground, falling to 2,684 dollars an ounce. In the currency market, the euro/dollar exchange rate fell to 1.077, while the dollar/yen depreciated to 152.8. Finally, in the world of cryptocurrencies, Bitcoin stands at 76,000 dollars
.
Future Perspectives
With the approval of the accounts for the first nine months of 2024 by the Unipol board of directors, which showed a profit down 6%, investors are preparing to face a period of greater volatility. The coming weeks will be crucial to understanding how Fed decisions and American political dynamics will affect European and global markets. Caution remains the watchword, as traders look for signs of stability and investment opportunities.
