Menu
in

Performance of European stock exchanges after the ECB meeting

Current situation of European stock exchanges

The Old Continent stock exchanges are off to a colourless start the day after the meeting of the European Central Bank (ECB). At Piazza Affari, the Ftse Mib is trading just above parity, with an increase of 0.15% in the 34,900 points area.
Among the titles in evidence, MPS, Ferrari and Iveco show positive performances, while Moncler, Erg and Amplifon record a significant decline.

Impact of the ECB’s decisions

The trading day is characterized by a scarcity of relevant events, with the only significant fact concerning industrial production in the eurozone. Market sentiment is partially dampened by disappointment with economic stimulus from China. In addition, the dollar is strengthening against other currencies, following the recent rate cuts made in Europe, Switzerland and Canada, ahead of the Fed meeting scheduled for next week
.

Analysis of economic rates and expectations

Yesterday, the ECB decided to reduce interest rates by 25 basis points, as widely expected, and indicated the possibility of further cuts in the coming meetings. Recently published US economic data provided a confused view of the state of the American economy, but they did not alter expectations of a 25-basis point reduction in rates at the next Fed meeting
.

Bond markets and commodities

In the bond market, the Btp-Bund spread stands at 111 basis points, after a rise recorded the previous day. The Italian 10-year yield returned to 3.33%, while the German benchmark stands at 2.21%. As far as raw materials are concerned, Brent oil exceeds 73 dollars per barrel, supported by expectations of tougher US sanctions against Iran and Russia, which counter concerns about a global surplus in 2025. Gold, on the other hand, is trading at 2,683 dollars
an ounce.

Trend of currencies and cryptocurrencies

In the currency market, the euro/dollar exchange rate slips to 1.047, while the dollar/yen approaches 153. Among cryptocurrencies, Bitcoin continues to fluctuate around 100,000 dollars, maintaining a constant interest among investors
.

Future Perspectives

In an environment of economic and political uncertainty, investors remain cautious, closely monitoring central bank decisions and incoming economic data. The current situation requires an in-depth analysis and a well-defined investment strategy to face future challenges
.

Leave a Reply