MILANO – The European Stock Exchanges ended up in the last session of the week supported by the good performance of Wall Street, by the encouraging data coming from the Chinese economy and by the comforting data which seem to come from the price trend in Europe. After the massive slowdown recorded yesterday in Spain, today inflation has also marked a slowdown in France, falling to 5.6% in March from 6.3% in February, with a dangerous alarm bell linked however to food prices , which grew 15.8% year-on-year.
The dynamics are similar in Italy and in the Eurozone as a whole: slowdown in the general index thanks to the slowdown in energy, but the underlying component remains at sustained levels. And it is precisely on the “core” component that the attention of the ECB and the markets is focused. According to Unicredit analysts, in fact, inflation net of energy components remains hard to overcome and for this reason the markets are already pricing in a forthcoming rate increase from 25 basis points in May. According to the specialists of the Italian bank, Christine Lagarde will probably be called upon to make three more hikes of the kind to continue the battle against prices. Positive day also in Asia, with all indices positive and Tokyo which closed at +0.93%.
European stock markets close higher
Closing up for the main European stock exchanges in the wake of Wall Street which is proceeding positive after the PCE inflation data which in February slows down beyond estimates. In Paris the Cac 40 rose by 0.81% to 7,322.39 points, in Frankfurt the Dax rose by 0.73% to 15,635.65 points and in London the FTSE 100 gained 0.15% to 7,631.90. The Ftse Mib in Piazza Affari marks +0.34%.
Wall Street opens higher
Wall Street opens positive. The Dowì Jones rose by 0.48% to 33,016.33 points, the Nasdaq advanced by 0.39% to 12,059.96 points while the S&P 500 recorded a gain of 0.41% to 4,068.08 points.
US inflation rises less than expected
Inflation measured by the PCE index, which the US Fed uses as one of the main indicators of pressure on prices, rose in February by 5% on an annual basis, slightly below the +5.1% expected by analysts. On a monthly basis, it increased by 0.3%, in line with expectations.
European Stock Exchanges Improve After Inflation Data
The European stock exchanges are trying to consolidate the increases after the data on inflation in the Eurozone, which fell more than expected in March. Paris advanced by 0.4%, London and Frankfurt by 0.2% while Milan is approaching parity (-0.06%). Government bonds reversed course, whose yields fell by a few basis points, led by the BTPs, whose yield fell by five points to 4.16% while the spread with the Bund closed to 182 basis points.
Industry, January turnover drops by 1.1% per month
In January, Istat estimates that the turnover of industry, net of seasonal factors, decreased by 1.1% in economic terms, recording a negative trend on both markets (-0.3% on the domestic one and – 2.6% on the foreign one). In the quarter November 2022-January 2023, the overall index remains unchanged compared to the previous quarter (-0.1% on the domestic market and +0.1% on the foreign market. Corrected for calendar effects, total turnover grows in trend terms by 8.6%, with increases of 9.1% on the domestic market and 7.7% on the foreign market.The working days – ISTAT points out – were 21 against 20 in January 2022.
Germany, unemployment up slightly
The unemployment rate in Germany rose to 5.60% in March from 5.50% in February.
Positive opening for the European Stock Exchanges
Positive opening for the main European stock exchanges: just a few minutes after the start of trading, Piazza Affari gains 0.12% with the Ftse Mib at 27,053 points. Frankfurt scores +0.30% and Paris +0.31%. Flat London at +0.02%. On the Asian market, Tokyo closed at +0.93% with the Nikkei at 28,041 points
China, services PMI at 12-year high
China’s manufacturing PMI rose but at a slower pace in March, while services sector activity climbed to a 12-year high. The manufacturing index rose to 51.9 points, above the expected 51.5 points and below February’s 52.6 points. This is what emerges from the data of the national statistics office which shows that the recovery of the post-Covid industry in China is struggling to take off due to the weakening of global demand and the decline in the domestic real estate market. However, the Chinese economy is supported by services, which reach 58.2, the highest since May 2011. Overall, the two indices signal that the Chinese economy is still rebounding after the end of the anti-Covid restrictions which for three years they have harnessed the growth of the Dragon. China’s March composite PMI rose to 57 points in March, above February’s 56.4 points, hitting its highest level in more than a decade.
The spread opens at 186 points
The spread between the BTP and the German Bund opened at 186 basis points, with the yield on the Italian 10-year bond at 4.22% on the secondary market.
