(Il Sole 24 Ore Radiocor) – Higher-than-expected US inflation in January sent kole European stock exchanges , cautious games in the morning waiting for this data. In Piazza Affari, the Ftse Mib lost 1.07%, in Paris the Ca40 1.78% and in Frankfurt the Dax40 1.81%, on the day in which German GDP growth was revised downwards of the fourth quarter of 2022 (+0.9% annually from +1.1%), in the last session of a bad week in general for continental price lists. In January, in the United States, PCE inflation (personal consumption expenditures price index), the data preferred by the Federal Reserve for assessing price trends in the US, increased by 0.6% compared to the previous month, against expectations for an increase of 0.5%, and grew by 5.4% compared to a year earlier, after 5.3% in December (revised from the initial 5%), against expectations for a figure of 5%. This, combined with other positive macro data for the US economy (above expectations for new home sales and consumer confidence at a 13-month high), fuels investors’ fears about the aggressive policy of the Federal Reserve on rates. The geopolitical tensions between Beijing and Washington contributed to stiffening the climate, on the day of the anniversary of the Russian invasion of Ukraine. Meanwhile, the a. indices continue to decline Wall Street.
Eighth in red for Europe, Milan with black jersey (-2.8%)
Negative week for the European Stock Exchanges with Milan wearing the black jersey among the main continental lists. The Ftse Mib which lost 2.8% compared to last Friday (+13.8% since the beginning of the year), when the Stoxx 600 lost 1.4%. Frankfurt’s Dax40 fell by 1.8% in the week (+9.2% year-to-date), with Paris’ Cac40 down by 2.2% (+11%), Amsterdam’s Aex by 2 .4% (+8.3%), the Ibex35 of Madrid by 1.4% (+11.85) and the Ftse100 of London by 1.6% (+5.7%). The week was negative for almost all sectors with that of raw materials (-5.4%) which was the most penalized, followed by Tech and Real estate, both in the red by 3.9%. Among the stocks, in Milan the performance of Stellantis stands out (+3.1%), also among the best in Europe in the Eurostoxx 50, in the week of the 2022 accounts, judged “record” by the automotive group, which moved against the trend compared to the European sector (-2.3%). The results of 2022 and the new plan to 2026 have instead sunk Eni (-7.7% in the eighth).
US income and spending above estimates, inflation accelerates
In January, personal incomes in the US rose less than expected, while consumer spending rose more than expected. Revenues increased by $131.1 billion, +0.6% from the previous month, with the consensus at +1.2%. The Commerce Department also reported that consumer spending rose $312.5 billion, up 1.8 percent from the previous month, against expectations for a 1.4 percent rise. December data were revised up from +0.3% to +0.2% for incomes and from -0.2% to -0.1% for expenses. In addition, inflation picked up pace in January, following slowdowns in the previous two months. The Fed’s preferred measure for calculating it, the PCE data, increased by 0.6% compared to the previous month, against expectations for +0.5% and grew by 5.4% compared to a year earlier, after 5 % in December, against expectations for a confirmation of 5%. The “core” component of the data, excluding volatile elements, grew by 0.6% compared to the previous month, against expectations for +0.4%, and by 4.7% compared to a year earlier, against expectations for a confirmation of 4.4% in December.
Tim in the spotlight on the day of the Board of Directors, good for Saipem
Tim sitting in the spotlight in Piazza Affari (+1.36%), on the day in which the board examined the offer of Kkr. In a note, the council declared that it appreciated the interest of the US fund but the proposal was judged to be economically improvable. At the bottom of the Ftse Mib, the realizations hit Pirelli (-3.76%), in a weak day overall for most sectors, starting with auto and financials. purchasing session for Erg (+1.71%) and Saipem (+1.95%) following the announcement of an agreement with Seaway7 on future offshore wind projects. They held the utility with Terna (+0.395) and A2A (+0.33%). They closed in the red Interpump (-3.59%), with the banks Bper (-2.31%) and Banco Bpm (-1.87%). Weak Inveco Group -2.56%, Cnh Industrial -1.93% and Stellantis -2.11%, with Ferrari -0.89%, which recovered at the end from the lows of the session after announcing the board’s proposal to distribute a dividend of 1.81 euro per share (+33%) for a total amount of 329 million euros. Sales also on Tenaris (-2.12%), Diasorin (-2.37%) and Campari (-2.14%).
Spread closes at 190 points, 10-year yield at 4.43%
Closing little move for him spread between BTp and Bund on the Mts secondary market of European government bonds. At the end of the session, the yield differential between the 10-year benchmark BTP (Isin IT0005518128) and the German equivalent maturity is indicated at 190 basis points from the 189 points of yesterday’s latest reference. The yield of the 10-year benchmark BTP rises again, marking a last position at 4.43% from 4.37% on the previous day’s closing.
