Positive week for European share markets, while the US and Asian indices remain behind which have been weighed down by sales on the technological sector. The price lists recorded a good performance in today’s session, accelerating in the afternoon after the president of the Federal Reserve Jerome Powell opened the door to a possible cutting of the rates at the next FED meeting in September, citing increasing risks for the labor market, even if it has not explicitly engaged in this sense.
Today’s session
Among the European Modesta Modesta Lists for Frankfurt, which shows a moderate rise of 0.29%, Color London, which does not record significant variations, compared to the previous session, and Resistant Paris, which marks an increase of 0.40%.
Increased for the Milan stock exchange, which shows a rise of 0.69%on the FTSE MIB; On the same line, the day of earnings for the Ftse Italia All-Share, which ends the day at 45,908 points. The Ftse Italia Mid Cap (+0.94%) rises; On the same line, the Ftse Italia Star (+1.29%) positive.
Among the Best performers of Milan, in evidence of stmicroelectronics (+4.67%), Stellantis (+4.23%), Azimut (+2.97%) and Prysmian (+2.61%). Among the protagonists of the FTSE Midcap, WiIT (+3.64%), Banca Generali (+3.55%), OVS (+3.19%) and Zignago Vetro (+2.89%).
Powell’s words
“Although the labor market seems to be in balance, it is a curious type of balance that derives from a marked slowdown of both the offer and the demand for workers. This unusual situation suggests that the reduction risks for employment are increasing. And if these risks materialize, they can do it quickly,” Powell said to Jackson Hole. “It is also possible, however, that the pressure up to the prices due to duties can trigger a longer lasting inflationary dynamic, and this is a risk to be evaluated and managed,” he added.
“The stability of the unemployment rate and other indicators of the labor market allows us to proceed with caution in evaluating changes to our political orientation – highlighted the president of the Fed – nevertheless, with the policy in restrictive territory, the basic prospects and the changing balance of risks could justify an adaptation of our political orientation”, said Powell, observing that, although the bodies will be expected to increase Prices, the basic scenario provides that this impact on inflation will attenuate.
Powell’s comments open the road to a cut of the rates in the Fed meeting of 16-17 September, but the outgoing data will be fundamental before that date. The next monthly report on employment will be published on September 5, while the data on consumer and production prices will be published the following week.
Today’s data
On the macroeconomic front, in Japan the July inflation slowed down to +3.1% a/to from +3.3% thanks to energy, but the level remains well higher than the boj target (2%). In Germany the 2nd quarter GDP has been revised downwards (-0.3% t/t from -0.1%) due to a clear drop in investments (-1.4% t/t) and minimal consumption support (+0.1%).
The growth of wages negotiated in the euro area rekindled 3.95% in the second quarter of 2025, compared to 2.46% of the three months earlier, according to data from the European Central Bank (ECB). The data, however still below the 5.37% peak recorded in the third quarter of last year, will probably keep the ECB cautious in evaluating a possible recovery of the cuts of interest rates in September.
The SME data
The main macroeconomic data of this week were the PMI reports of August. In the euro area, the report showed that the manufacturing sector recorded growth for the first time from June 2022 The increase is due to both France and Germany. At the same time, the SMEs of the services dropped from 51.0 to 50.7, as expected.
Even in the United States, the PMI indexes of August exceeded expectations, with the manufacturing sector on increase to 53.3 (39.7 consensus) from 49.8, while the services were slightly dropped to 55.4 (54.2 consensus) from 55.7. The increase in the manufacturing sector has been driven by the increase in new orders, employment and production indices, with the production index that has reached the highest level in over three years, to indicate overall very positive data.
The data of the United Kingdom SMEs were better than expected, as in the United States and in the euro area, with the 53.0 53.0 composite index, driven by a performance of the service sector much better than expected.
