by Chiara Di Cristofaro and Paolo Paronetto
The correction of the US stock indexes also weighs with new fears on the banking sector and the data on retail sales which gives way to the “hawks” of the Fed. Inflation is slowing down in Great Britain. Asia is also bad
3′ of reading
(Il Sole 24 Ore Radiocor) – Le European stock exchanges are in the red, in the wake of the losses suffered by Wall Street and the new declines in Asian stocks, with concerns about the slowdown of the Chinese economy in the foreground. Wall Street indexes lost ground after the better than expected data on retail sales once again provided arguments for the Fed’s “hawks”. Position confirmed by the president of the Minneapolis Federal Reserve, Neel Kashkari, who reiterated that, although having come down, inflation “is still too high”. The market therefore fears that rates could remain high for longer, even if at the moment futures on Fed Funds continue to consider the maintenance of the status quo at the September meeting of the US central bank as 90% probable.
Thus they move into negative territory the FTSE MIB of Milan, the worst with banks, the CAC 40 of Paris, the DAX 30 of Frankfurt, theIBEX 35 of Madrid andAEX in Amsterdam.
Milan Black Jersey with Banks
The black jersey goes to Piazza Affari, with sales focusing on banks (Intesa Sanpaolo e Unicredit) and on the auto sector, after that Tesla it cut prices in China for the second time in three days.Stellar it is weak while in the galaxy Exor stands out in the negative Cnh Industrial. Beware of Banca Mps with press rumors according to which the Treasury could sell between 10% and 15% of the share capital at a price in the order of three euros per share The securities are still in positive territory Amplifier after the Danish Demant raised its targets for the current year.
Weak oil, global demand worries
Oil prices continued to fall for the third session in a row, with concerns over the slowdown of the Chinese economy and the effects on global demand outweighing the decline in inventories in the United States.
The price of natural gas in Amsterdam rose by 9.5% to 42.5 euros per megawatt hour.
UK inflation at 15-month low
Meanwhile, UK inflation fell to a 15-month low in July on lower energy prices and slower food price increases. The Office for National Statistics (ONS) said inflation was 6.8% in July, down from 7.9% in June. This is the lowest rate since February 2022. Analysts had expected a reading of 6.7% for the month.
Ruble strengthens after Central Bank move on rates
The Russian ruble strengthened after the emergency intervention of the Central Bank which raised interest rates to 12% from 8.5%. The move came after the Russian currency hit a year-and-a-half low against the US greenback, breaking the 100-rouble-to-dollar mark. The exchange rate now stands at 96.53 rubles per dollar, further strengthening from yesterday’s 97.
Tokyo closes down on Wall Street’s heels
The Tokyo Stock Exchange closed trading down 1.46% on the back of the correction of US stock indexes. The Nikkei closed at 31766.82 points while the broader Topix fell 1.29% to 2260.84 points. Yesterday Tokyo had closed higher after the publication of Japanese GDP which grew by 1.5% quarter on quarter against the previous +0.9%. In today’s session, financial stocks such as Mitsui (-3.8%) and Mitsubishi Ufj Financial (-2.9%) were down.
MSCI Asia index at 11-week lows
In Asia, meanwhile, the region’s MSCI ex-Japan index fell 1.17% to an eleven-week low after China’s July new home sales fell for the first time since the start of the year. An indication that confirms the signs of an economic slowdown, while at the moment there are no stimulus interventions by the Beijing government.
First monthly drop in 2023 for new home prices in China
Prices of new homes in China fell by 0.2% per month in July, for the first time in 2023. This is the latest in a series of negative data that are fueling new doubts about the resilience of the economy: according to the Office national statistics, prices recorded an annual decline of 0.1%. The new slowdown has matured in the midst of the worsening of the real estate debt crisis. The related investments, according to data released yesterday, amounted to 6,770 billion yuan (945 billion dollars) in January-July, an annual decrease of 8.5% (-7.6% for the residential part).
Clare Di Cristofaro
Radiocor editor
Paolo Paronetto
Radiocor editor
View on ilsole24ore.com
2023-08-16 08:48:45
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