The Ftse Mib closes at 33,453.78 points with an increase of 0.8%driven by the leap of Telecom Italia (+6.8%). Among the best stocks also Bpm Bank (+2.9%), Unicredit (+2.9%) and Bper Bank (+2.2%), supported by Unicredit’s acquisition of 9% of Commerzbank. Down Hera (-1.7%), Erg (-1%), Snam (-1%) and Diasorin (-0.9%). The Btp/Bund spread drops to 140 points.
Looking at other European stock exchanges, Frankfurt recorded a +1.31%, Paris +0.91% and London +0.87%.
The ECB is starting to cut rates
The European Central Bank has cut interest rates again 25 basis points, bringing them to 3.50%, as predicted by economists.
The 0.25% rate cut by the ECB will bring monthly savings of between 13 and 30 euros on the most common mortgages in Italy, according to the Codacons. For a 20-year mortgage of 100,000 to 200,000 euros, the savings will be between 13 and 27 euros per month, with an annual reduction of between 156 and 324 euros. For 30-year mortgages, the monthly savings will vary between 15 and 30 euros, with an annual reduction of between 180 and 360 euros.
Stock Markets 12:00 PM: Milan’s positive ride continues. Banco Bpm and Tim are the best, Hera and Italgas suffer
European stock markets continue to rise. At 12:00 Milan The index rose by 1.17%, reaching 33.561,79 points, with Bpm Bank (+2.70%), Tim (+7.42%) and STMicroelectronics (+2.32%) among the best performers. Unicredit remains in the spotlight after announcing its intention to buy Commerzbank: the share price of the institute led by Andrea Orcel recorded an increase of 2.59% to 37.09 euros. However, utilities showed a negative trend, as A2A (-0.48%), Hera (-0.84%), Italgas (-0.29%) and Snam (-0.35%).
Other European stock markets are doing well: London is up 0.82% while Frankfurt is up 1.19%. Madrid is up 1.12%. The BTP/Bund spread is stable at 141.3 basis points awaiting the BTP auction, while the euro is up 0.02%, trading at 1.102 dollars.
Stocks 9am: sharp rise this morning, growing expectations for rate cut by ECB
The European stock exchanges are rising in anticipation of the expected 0.25% interest rate cut by the ECB. Attention is focused on the statements of Christine Lagarde, which could provide clues about future Frankfurt policies. While the cut seems a given, the day could be a surprise given the recent volatility, similar to that seen around US inflation data in early September. Frankfurt earn 1.32%, Paris 1.12%, London 1.11% and Milan 0.93% at 33,483 points.
In Milan, banks are doing well, Tim and Stm
In Europe, purchases are intensifying, with Piazza Affari showing a particularly positive performance. The main Italian stocks have recorded a positive trend. Telecom Italia led the gains with a 4.97% increase to €0.2364, a rise after the Italian Competition Authority launched an in-depth investigation into Swisscom’s acquisition of Vodafone Italia under Italian merger control rules.
Good too Finecobank which grew by 2.56%, reaching 15.62 euros, while Stmicroelectronics gained 2.50%, settling at 25.815 euros, in the wake of the very good results it achieved Nvidia on Wall Street yesterday. Banco BPM also rose 2.45% to 5.93 euros, followed by Iveco Group, which rose 2.35% to 8.708 euros. Interpump Group opened with a 2.34% increase, reaching 38.56 euros. Also growing were Bper Banca (+2.28% to 4.882 euros) and Bca Pop Sondrio (+2.11% to 6.79 euros). Finally, Tenaris and Banca Monte Paschi Siena gained 1.89% and 1.88% respectively, opening at 12.93 euros and 4.983 euros.
Few stocks fell: Italgas saw its value fall to 5.185 euros, with a decrease of 0.58%. Terna saw a decrease of 0.37%, falling to 8.092 euros. Hera and Snam also recorded a decrease of 0.22%, respectively to 3.582 euros and 4.564 euros.
Investors ready for rate cuts
Among the European stock markets it is moving in positive territory Frankfurtshowing an increase of 1.32%, but also Londonwhich recorded a rise of 1.11%, and a decidedly positive balance for Pariswhich boasts a progress of 1.12%.
The Nasdaq gained 2.15% to 17,391 points following statements by the CEO of Nvidia (+8.15%) regarding the trend in demand for artificial intelligence chips. On the macroeconomic front, today is the day of ECB, with the rate decision scheduled for 2:15 p.m. and President Christine Lagarde’s press conference at 2:45 p.m. Economists expect a 25 basis point interest rate cut, supported by falling inflation and slow economic growth.
Although the cut is expected, markets may be in for a surprise given the strong volatility shown in previous sessions, such as that of US inflation in early September. Although prices slowed to 2.5% in August, an unexpected increase in the core figure caused sudden movements in the markets, with an initial decline followed by buying, especially in the technology sector.
Spread at 142 points
Eurozone government bond yields opened slightly on the day of the ECB, which is expected to cut the cost of money by 25 basis points (3.50% the new expected deposit rate) and provide indications on monetary policy for the coming months. At the opening, the yield on the benchmark 10-year BTP stood at 3.54% from 3.53% at yesterday’s closing. The spread fell to 142 points from 143 yesterday.
