(Il Sole 24 Ore Radiocor) – The wait for Fed chairman Jerome Powell kept investors in suspense, who preferred caution. At a time when the American labor market is still very strong (517,000 jobs were created in January, against expectations for 187,000), there are fears that the American Central Bank may choose the path of further aggressiveness and raise the interest rates well above 5% and that it can keep them at those levels longer than expected. So the European indices closed a nervous day not far from parity: Milan +0.36%, still the best and above 27,000 points, Paris -0.07% and Frankfurt -0.16%, Amsterdam +0.09% and London +0 .36 percent. Piazza Affari was supported in particular by the banks and the oil companies with the rebound in crude oil.
Powell: “I expect a significant drop in inflation in 2023”
Federal Reserve Chairman Jerome Powell said he expected a significant drop in inflation in 2023 although he added that it would take 2024 to return to a consumer price index near 2 percent. The number one of the US central bank began speaking at 18.40 Italian time, after the closure of the European markets and spoke of the hot topics of the moment. On the rates front, Powell said the current pace of hikes is appropriate, specifying that additional rate hikes will be needed if US economic data continues to be stronger than expected.
Wall Street positive after Powell’s words
First volatile session for Wall Street then with a positive closure after the words of the president of the Federal Reserve, Jerome Powell, at the Economic Club of Washington, who spoke of falling inflation in 2023 and at the same time of possible further rate hikes. Currently, US rates are at 4.5%-4.75%, the highest level since 2007; according to the median value of the forecasts of the members of the FOMC, the monetary policy arm of the Fed, the peak in interest rates is expected at 5.1 per cent.
At the end of the session, the Dow Jones recorded an increase of 0.78%, the Nasdaq closed at +1.90%, while the S&P 500 recorded a +1.29%.
Piazza Affari supported by banks and oil stocks
Banks (Bper +1.65%, Banco Bpm +1.9% awaiting accounts) and oil companies (Saipem +5.19%, Eni +1.53%) in particular contributed to supporting the Ftse Mib crude oil rebound. Telecom still brilliant (+2.26%) thanks to the “buy” recommendation from Equita which shows confidence in the success of the corporate reorganization project with the offers on the incoming network. At the end of the main segment, Amplifon closed (-2.46%) which had initially benefited from the guidance provided by the Danish competitor Demant (+3.6% in Copenhagen), which announced that it expected organic growth this year between 3% and 7% and reported operating profits for the second half of 2022 above expectations. Terna (+1.28%), Snam (+0.86%) and Italgas (+1.26%) were positive right from the start thanks to the upgrade on the Italian gas and electricity network companies arrived from Rbc.
