A week of purchases for purchases for the world financial markets that reacted without shaking decisions, however discounted, of Fed and ECB, closes a week.
ECB cuts rates to support the Economy of the Eurozone
As widely provided, the ECB board has decided to lower the reference rates of 25 basis points. The rate on deposits goes from 3% to 2.75%, the rate on main refinancing operations from 3.15% to 2.90%, the rate on marginal refinancing operations from 3.40% to 3.15%.
The decision, explain by IG Italia, was justified by the disinflation process in the euro area which is located on the path to reach the target of 2% during the year. According to the ECB experts, the financial conditions are still rigid and still suffer the effects of the past raises of the rates (the so -called delay of transmission of monetary policy on the real economy).
From the press release and the words of the governor Christine Lagarde at the press conference “we can deduce that the process of reducing interest rates should continue in the coming months with an almost ‘safe cut in March and two more during the year”.
The January FED meeting was a non-event
Various communications last month had already indicated the desire for the members of the FOMC to take a little distance from the cuts of the rates and take a break in the first meeting of the year. On the other hand, explain by Ersel Asset Management, in December, the post-union press release had adopted a less demanding Forward Guidance than the Fed had a clear intention of reducing the cost of money, and this was already an indication Of the desire to have a free hand during 2025. The market had already been bound for some intervention for January and, of the two expected cuts, is convinced that the first can arrive in June, while the second could be even predictable at the end of the year.
EUROZONA Economy in Stal. US inflation is not surprising
The data on the GDP of the fourth quarter of Italy, Germany and France have disappointed the expectations, increasing the pressure on the ECB so that it proceeds in the monetary attachment. Instead, the data on the harmonized inflation of Spain in January disappoints, slightly higher than expected. In the USA, the GDP of the fourth quarter rose by 2.3%, slightly under the expectations. The annual data stood at +2.8%. Signals of strength from the labor market, with the number of workers who for the first time requested unemployment subsidies, in the week ended on January 25, it decreased by 16,000 units at 207,000, a number less than the estimates. The inflation measured by the PCE Index, the personal consumption Expeditions that the Fed uses as one of the main indicators of the price pressures, in December marked an increase to 2.6%, in line with the expectations of analysts, but in acceleration compared to 2.4% of November. The PCE Core index, net of energy and food, marked a +2.8%, in line with the expectations.
New maximums for gold with fear of US dice
New record for the quotations of gold in the wake of the strong demand for refuge assets due to the tariff threats of the United States, while attention remains on the data of American inflation to understand the next moves of the Fed, in the field of rates. In addition, the weakening of the dollar against the main currencies after the disappointing data on US growth is a further thrust factor at gold prices.
The weekly performance of bags
The palm of the ups and dials this week is conquered by the square of Madrid which brings home about 3%. The Frankfurt Stock Exchange follows with a +1.5% and that of London with +1.2%. Relics just below 1%are recorded by Milan (+0.9%) and Paris (+0.8%). The ending is preparing contrasted for the Wall Street bag with the quarterly of the Big Tech (Tesla, Microsoft, Meta, who captured the attention of analysts, digested the discounted move of the Fed. Nvida has affected the Chinese challenge on artificial intelligence .
The best and worst in Piazza Affari
In Piazza Affari, a week to forget for Stmicroelectronics that brings home an 11%drop, to the minimums since 2020, after the accounts falling and the disappointing guidance. Among the banks, protagonists in the last few weeks of the bank Risiko, MPS collapses of 10.9% after Mediobanca rejected the totalitarian Oops launched by the Sienese bank. The title of Piazzetta Cuccia archives the eighth with a performance of +3.5%. Among the best titles of the week, they are placed recurrence and the Longhi, both with a rally of over 5%. Brunello Cucinelli and Campari follow, uphill of about 4%. Also generally general (+3.8%) which presented the plan to 2027.