US Inflation Data Expected to Dictate Fed’s Next Moves – Euro Falls, Oil Drops, and Spread Rises: European Stock Exchanges Move Weakly

Finance

Of Stefania Blasioli e Giorgia Colucci

Data on price increases in the United States are expected on Thursday to guess the Fed’s next moves. The euro is falling around $1.09. Crude oil drops. Spread in the 170 point area

2′ reading

(Il Sole 24 Ore Radiocor) – Le European stock exchanges in the first session of the week, after having concluded a 2023 to be framed (+19% the average of the continental markets and +28% Milan), they move in the name of weakness (STOXX 50).

While the Tokyo Stock Exchange remained closed for holidays, the main indices of the Old Continent fluctuated around parity, as FTSE MIB of Milan, the CAC 40 of Paris andIBEX 35 of Madrid. Further back the FT-SE 100 in London andAEX of Amsterdam, while the DAX 30 of Frankfurt.

Focus on US inflation

All eyes remain on the data relating to American inflation (which will be released on Thursday 11 January), useful for trying to guess the Fed’s next moves, in view of the meeting on 31 January. On the central banking front, Raphael Bostic of the Fed is expected to intervene.

On the European side, industrial orders in Germany fell in November compared to the same period of the previous year, with the index decreasing by 4.4%. Wednesday 10th and Thursday 11th January will be the turn of the data from France and Italy.

Amplifon in the running on Piazza Affari, banks doing well

Among the stocks with the highest capitalization on Piazza Affari, it is running Amplifier, following Morgan Stanley’s upgrade to ‘overweight’ from ‘equal-weight’ and an improvement in the price target. The banking sector is positive with Banca Mps in the head, while Bank of Milan is driven by the good net collection in December. Profit taking up Leonardo – Finmeccanicaoil with weak Eni, Saipem e Tenaris.

Euro down, oil and gas also down

On the currency market, the euro remains at quota $1,093 (from 1.097 at Friday’s closing) and is close to 158 yenwhile the change dollar/yen stands at area 144. Oil is falling, with the Brent March above 78 dollars a barrel and the WTI of the same expiry close to 73. Natural gas traded in Amsterdam is also decreasing at just over 33 euros per megawatt hour.

Spread rising around 170 points

The spread between BTp and Bund is slightly rising. The yield differential between the benchmark ten-year BTp (Isin IT0005560948) and the German equivalent maturity stood at 169 points, two more than the last closing. The yield of the benchmark ten-year BTp also rose, starting trading at 3.88%, from 3.82% the day before.

Asia in red, Tokyo closed

Downward closing for the Hong Kong stock exchange where the stock of the Chinese giant Evergrande was suspended following the announcement of the arrest of the head of the electric car subsidiary. The news of the arrest of Liu Yongzhuo, head of Evergrande New Energy Vehicle (Nev), was given by the same parent company, in crisis since 2021, to the Hong Kong Stock Exchange, where the securities were suspended this morning pending the “release of information”.
A negative climate has also been shared by the other Asian stock exchanges while Tokyo is closed for holidays.

View on ilsole24ore.com
2024-01-08 08:37:30
#stock #markets #sluggish #week #inflation #Amplifon #runs #Milan