MILAN – The Federal Reserve’s work on interest rates has borne fruit, but they are not yet fully developed. That is the essence of the president’s words Jerome Powellinterviewed by CBS Sunday evening: “Inflation fell sharply last year and in the last six months. We are making progress. The work is not done and we are committed to ensuring a full return to price stability for the benefit of the people,” he said. Therefore, he gave further impetus to the prospect of acting as early as March: “We – explained Powell – want to be sure that inflation is moving towards the 2 percent target.” “I don’t think so,” he added , “that we will achieve this level of confidence in time for the March meeting, which is scheduled for seven weeks.” In the markets there is that China’s volatile session, which after a black week on the Shenzhen and Shanghai stock exchanges crashes again, then rises again, only to close lower again. He intervenes China Securities Regulatory Commission which undertakes to take effective measures to prevent the risks of securities enforcement. Already on Sunday they agreed to prevent unusual market fluctuations and increase the inflow of funds. In the Eurozone Services PMI indices are mixed: The general value falls to three-month lows, in Italy it returns to positive above 50 points.
Piazza Affari extends the increase, Unicredit moves on
Piazza Affari continues to rise with the Ftse Mib rising 1.14% and over 31,000 points (31,068) in the middle of the session, its highest level since 2008. The Milan Stock Exchange is performing better than the other European bourses, which are taking a more cautious approach following the release of services SMEs that rose in Italy, Spain and the UK while contracting in the Eurozone, France and Germany. Piazza Affari is driven by a “weighted” sector, the banking sector, which is struggling with a crucial week on the quarterly front: Intesa +2.84%, Mps +2.76, Bper +2.03%, while Unicredit after the “Record” increased by 9.83% “2023 results and the announcement of a distribution of between 90 and 100% for the 2023 and 2024 financial reports.
Milan is accelerating, driven by the banks
Piazza Affari continues to rise, with the Ftse Mib at +1.02% and above 31,000 points (31,031), its highest level since 2008. The Milan Stock Exchange is performing better than the other European bourses following the release of the PMI services These have increased in Italy, Spain and Great Britain, while they have contracted in the Eurozone, France and Germany. Piazza Affari is driven by a “weighted” sector, the banking sector, which is struggling with a crucial week on the quarterly front: Intesa +2.84%, Mps +2.76, Bper +2.03%, while Unicredit after the “Record” increased by 10.13% “2023 results and the announcement of a distribution of between 90 and 100% for the 2023 and 2024 financial reports.
EU price lists start slowly, Unicredit drags Milan
European stock markets opened cautiously and with little movement after Fed President Jerome Powell dampened enthusiasm about interest rate cuts. In Frankfurt the DAX marked +0.01% to 16,919.50 points, in London the FTSE 100 rose by 0.10% to 7,629.75 points, in Paris the Cac 40 fell by -0.02% to 7,590.37 points and in Madrid the Ibex-35 falls by 0.10% to 10,052.68 points. In Milan, Unicredit is the protagonist according to the balance sheet: it increases by 8% and pushes the general price list to +1%, with all banks doing well.
Vodafone, accounts above expectations. Confirms “discussions” on Italy
The Vodafone Group ended the third quarter above analysts’ estimates. Organic sales from services rose by 4.7% to 9,383 million euros. The group, we read in a statement, continues to expect an adjusted Ebitda after leasing of 13.3 billion euros and a cash flow of 3.3 billion euros. “Our operations in the UK and Spain are progressing well and we are in active discussions in Italy,” confirmed the CEO Margherita Della Valle. After rejecting the marriage proposal with Iliad, he confirms in the note on the Vodafone accounts: “We have confirmed that we are exploring options for consolidation on the market in Italy with various parties. There can be no certainty that a transaction will ultimately be agreed.”
The spread opens stable
The spread between BTPs and federal bonds starts at 157.7 points, corresponding to the value of 157 at the close of trading on Friday. The yield on the 10-year Italian bond was 3.815%, compared to 3.805% previously.
Chinese stock markets are on a rollercoaster ride and are still closing significantly lower
Chinese stock markets are completing another rollercoaster ride of heavy losses: the Shanghai Composite Index falls 1.02% to 2,702.18 points, while Shenzhen’s loses 3.93% to 1,433 points, 10. The two lists published on Intraday Lows of nearly -4% and -7% fell despite a pledge by the China Securities Regulatory Commission (Csrc), the market regulator, on Sunday to protect the size of small and medium-sized investors by “strictly punishing illegal market behavior.” At a macroeconomic level, the Caixin services PMI index fell to 52.7 in January (from 52.9 in December), reflecting lower growth in new orders.
Euro moved little at the beginning
The euro opened barely moved below $1,080. The common currency is changing hands at 1.0775 dollars (-0.06%) and is falling against the yen at 159.87 (-0.14%). Greenback stable against the yen at 148.36.
Tokyo closes higher on Wall Street records
The Tokyo stock market closed higher following Wall Street’s records, while Japanese exporters benefited from a weaker yen. The benchmark Nikkei 225 index rose 0.54% to 36,354.16 points, while the Topix rose 0.67% to 2,556.71. “Beater-than-expected U.S. jobs data sent the dollar rising to the mid-range of 148 against the yen,” IwaiCosmo Securities said. “Positive results from major domestic and foreign companies also supported buying of a wide range of stocks” in Tokyo.
China, services PMI index slows
The PMI services index sponsored by Caixin magazine records a decline in January to 52.7, falling from 52.9 in December, which is the highest level in the last five months: the data lacks the forecasts that at 52.9 a confirmation, due to lower growth in new orders. Although the indicator is in the expansion cycle for the thirteenth consecutive month, it confirms the difficulties of the Chinese economy. In particular, the growth of orders from abroad is showing a slowdown, albeit slightly. Ultimately, confidence fell to its lowest level in three months.
