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(Il Sole 24 Ore Radiocor) – The European stock markets are moving cautiously above parity, looking for an ‘encore’ after the gains of the day before, following in the wake of Wall Street and Asia, where Tokyo closed at the highest levels since March 1990 driven by high-tech stocks. Milan is positive with the Ftse Mib, Paris (Cac) remains awaiting the appointment of the new prime minister after the resignation of Prime Minister Elisabeth Borne and Frankfurt (Dax) is little moved after the data on German industrial production (-0.7% in November, against the expected unchanged figure). Madrid (Ibex), London and Amsterdam (Aex) are at stake.
Eyes always on inflation and central banks
Beyond the few data on the calendar (in Italy the unemployment rate for November), investors’ attention is focused on the inflation numbers expected for the week, including the consumer price index for December on Thursday in United States and the producer price index on Friday, the day on which, among other things, the season of American quarterly reports will begin. The numbers are also and above all important from a central bank perspective, especially after the president of the Atlanta Fed, Raphael Bostic, and Michelle Bowman, part of the Fed board, said they were satisfied with the fact that US inflation is constant decline and have made it clear that they expect rates to fall, but not in the immediate future.
In Milan, Pirelli stands out, the banks suffer
As regards the securities, Pirelli immediately takes to the top of the Ftse Mib, after Camfin, the vehicle of the Italian Pirelli partners led by Marco Tronchetti Provera, completes two operations planned some time ago and strengthens itself in the capital of Bicocca allowing Mtp Spa of the Milanese entrepreneur to reach an indirect share of 20.58%. Brunello Cucinelli did well, achieving higher-than-expected revenues in the fourth quarter and confirming 10% growth for 2024. The utilities (Snam) are also on the rise, while the banks are suffering (Bpm, Bper and Mps. The worst is ST, which like the whole sector is affected by the fact that Samsung has made it known that the operating profit for the fourth quarter of 2023 will decrease by over a third compared to the same period of the previous year.
On the currency front, the greenback is stable: the euro is worth 1.095 (against 1.0953 the day before), the dollar/yen is at 144.126 (from 144.76 yesterday). The euro/yen exchange rate is at 157.94 (from 157.91). Oil has moved little after the rises of the day before: February WTI contracts rise by 0.1% to 70.84 dollars a barrel, March Brent contracts by 0.25% to 76.31 dollars. Natural gas prices traded in Amsterdam are falling, with February contracts which, after having achieved a first position at 30.55 euros per megawatt hour, fall by 2.85% to 30.68 euros. Finally, the spread is rising to 169 points, 2 more than the previous closing, with the ten-year yield increasing to 3.86% from the previous 3.8%. Of note, Treasury yields are falling further, after falling on Monday for the first time in three sessions.
Tokyo at 34-year highs with tech
Strongly rising closing for the Tokyo Stock Exchange which, thanks to the performance of the high-tech sector, concluded trading at the highest levels of the last 34 years. At the end of the session, the Nikkei index achieved a gain of 1.16%, closing at 33,763.18 points (a record since March 1990) after having approached the symbolic threshold of 34,000 points. Positive session also for the broader Topix Index, which gained 0.82% to end at 2,413.09 points. The Nikkei was mainly driven by stocks in the technology sector with SoftBank Group, which gained 2.66% and Sony which rose by 1.29%. In the semiconductor sector, Nvidia supplier Advantest rose 6% and Tokyo Electron rose 3.27%.
Consumption is declining in Japan
On a cyclical level, household consumption in Japan weakened further in November. According to data communicated today by the Tokyo Government, consumption recorded a decline of 2.9% on an annual basis, recording the ninth consecutive drop and also the largest drop since last July. According to the data, domestic consumption in Japan is suffering from the combined effect of inflation and the weakness of the yen, which is weakening the purchasing power of families.
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Stefania Arcudi
Radiocor editor
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Chiara Di Cristofaro
Expert Radiocor editor
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2024-01-09 08:35:36
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