Still a cautious day on the equity markets of the Old Continent. The European stock exchanges, after a promising start, lost their luster over the course of the day. The decline is due to a specific concern, which began to run yesterday among operators and which today became stronger.
Here’s what worries the stock exchanges and why the European stock markets have slowed down today, in the analysis of the day of the ProiezionidiBorsa Experts.
Here’s what worries the stock exchanges and why European equity markets have held back today
Today all the European squares closed on positive ground, with the exception of the German one. Earnings, however, are below the maximum recorded in the first part of the session. The Ftse Mib index (INDEX:FTSEMIB) finished at 19,061 points, up 0.2%. The same gain in London and Madrid, while Paris rose by 0.4%.
One might think of a positive result, but it twists its mouth if you look at the strong upward start. The same Milan stock exchange, after less than half an hour from the start of trading, with the blue chip index was already above 19,250 points.
Fears that the economic recovery may be less than expected, especially in Europe, have held back the upside. A signal that also comes from oil prices. Crude oil lost heavily and returned below the $ 40 a barrel mark. The same for Brent, which fell by over 4%.
Concern about the slowdown in employment growth in the US
The same concerns about a slower and less incisive economic recovery also affect the US economy. Today, weekly claims for unemployment benefits were better than previously, but lower than expected. And this suggests a slowdown in growth.
For the US, the labor market is crucial. It is no coincidence that in the coming months, the Fed’s declared goal will be full employment, even at the expense of rising inflation.
Tomorrow at 2.30 pm the September unemployment data will be released. Analysts are expecting a decline to 8.2%. Markets are betting on a smaller decline. This is why Wall Street rose today at the close of the European stock exchanges. Operators are focusing on new growth incentive measures.
Deepening
To know the multidays analysis and the point of view of the international markets of the ProiezionidiBorsa Study Office, click who.
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