European stock exchanges and the impact of geopolitical tensions
European stock exchanges closed lower, with the Ftse Mib in Piazza Affari recording a decline of 1.3%, falling to 33,324 points. This decline was partly influenced by the escalation of tensions in Ukraine, where Ukraine carried out its first attack with American missiles on Russian territory. Putin’s reaction, who has not ruled out the use of nuclear weapons, has further fueled uncertainty in the markets. In this context, securities such as Telecom Italia, Banca Popolare di Sondrio and Finecobank suffered significant losses, while Leonardo showed some resilience, gaining 1.4% thanks to a favorable environment
for defense securities.
Analysis of macroeconomic data
From a macroeconomic point of view, the final reading of inflation in the eurozone was confirmed at 2% per year, with a core figure of 2.7%. In the United States, new construction sites showed a decrease of 3.1%, while building permits fell by 0.6% in October. These data suggest some stagnation in the construction sector, which could have repercussions on the economy as a whole. Tomorrow, investors will be waiting with interest for the European Central Bank’s report on wage negotiations, in addition to data on UK inflation and the quarterly report from Nvidia, which could further influence the
markets.
Market reactions and future forecasts
The reactions in the bond markets were evident, with yields falling and the Btp-Bund spread widening to 121 basis points. The Italian 10-year period was around 3.55%, while the German benchmark is at 2.34%. On the commodity front, Brent oil fluctuates around 73 dollars per barrel, while gold has seen an increase, reaching 2,624 dollars an ounce. Forex also showed stability, with the euro/dollar exchange rate essentially unchanged at 1.058. However, the situation remains volatile, and investors are cautious waiting for further geopolitical developments and economic data
.