Negative session for most of the European stock markets, while Piazza Affari ends on parity, not matching the increases on Wall Street, driven by the favorable climate after the results beyond expectations of two other large US technology groups, Amazon and Apple, and by Nvidia’s new agreement with Samsung, Hyundai and SK Group for over 260 thousand chips destined for artificial intelligence projects in South Korea.
On the macroeconomic front, in the Eurozone in October headline flash inflation recorded increases of +0.2% m/m (as expected and from +0.1% previously) and +2.1% y/y (as expected and from +2.2% previously), while core inflation increased by +2.4% y/y (as in September and against +2.3% expected). In Italy in October, harmonized flash inflation recorded variations of -0.2% m/m (against +0.1% expected and +1.3% previously) and +1.3% y/y (against +1.6% expected and +1.8% previously). Harmonized core inflation slowed by a tenth to +2.1% y/y.
The main indices
Among the substantially weak Eurozone indices, Frankfurt, which recorded a decline of 0.67%, moved below parity in London, showing a decrease of 0.44%, and a moderate contraction for Paris, which suffered a drop of 0.44%.
No significant changes at the end for the Milanese stock exchange, with the FTSE MIB standing at the values of the day before at 43,175 points; along the same lines, the FTSE Italia All-Share (Piazza Affari) remains at the starting line, stopping at 45,797 points, close to previous levels. The FTSE Italia Mid Cap fell slightly (-0.35%); the FTSE Italia Star rose (+0.76%).
The Italian blue chips
Among the best Italian large-cap stocks, Interpump stands out, marking an important progress of 4.29%. Good ideas on Prysmian, which shows a large advantage of 2.04%. Positive balance for Ferrari, which boasts an increase of 1.40%. Unicredit was substantially tonic, recording a capital gain of 1.39%.
The worst performances, however, were recorded on Telecom Italia, which closed at -2.33%. Intesa Sanpaolo is under pressure, suffering a decline of 2.23% (after the accounts with a figure slightly lower than expected on the interest margin, awaiting the new plan). Hera slips, with a clear disadvantage of 1.92%. Italgas is in the red, showing a sharp decline of 1.62%.
The Italian mid caps
At the top of the ranking of mid-cap stocks in Milan, Avio (+6.22%), D’Amico (+3.41%), Philogen (+2.06%) and Technogym (+2.01%). The worst performances, however, were recorded on IREN, which closed at -3.83%. Ferragamo’s negative performance stands out, falling by 2.99%. Alerion Clean Power drops by 2.38%. Sharp decline for Technoprobe, which marks -1.98%.
Central banks
Central banks were the protagonists this week. The Fed cut rates by 25 basis points, as expected, at its meeting on Wednesday, but analysts now believe the US central bank will halt interest rate cuts in December. As expected, the European Central Bank kept its monetary policy unchanged at its meeting on Thursday. The ECB did not publish any new forecasts at the meeting and Lagarde gave virtually no indication of her intention to change interest rates in one direction or the other.
Next week
The focus on central banks will continue next week. Sweden, Norway and Australia are expected to keep interest rates unchanged, while the Bank of England could cut interest rates by 25 basis points on Thursday. Friday’s U.S. labor market report will likely be delayed again due to U.S. government business shutdowns.
