A substantially positive week for the main European bags, in which The ECB cut the interest rates of 25 basis points. A discounted move, while the phrases used by the president, Christine Lagarde, in the post -board post press conference, surprised the professionals. The approach dependent on the data and, meeting by meeting, in line with the declarations that the central banks have released over the last year, instead a clear signal signal in the cost of the cost of money has been reiterated. “With the new cut just decisive, we are currently well positioned to navigate the uncertainties of the next few months,” said the number one of the Eurotower who warned: an escalation of the duties could curb the growth of the euro area.
The Eurozone economy marks growth, but remains close to stagnation
The Economy of the Eurozone was barely managed to mark a new expansion in May, although with a further slowed growth rate. The economic activity has undergone the brake of the prolonged infiacchiament of the demand for goods and services, limiting the growth of employment and forcing companies to further reduce the accumulation of unavailable orders. If trust has marked greater growth, it remains relatively attenuated. In the meantime, Eurozone has been weakened, although this is largely due to the drop in costs and purchase prices of the manufacturing sector. Analyzing the PMI data, Cyrus de la Rubia, Chief Economist at the Hamburg Commercial Bank, said: The European Central Bank will certainly not be satisfied by SME data on prices. In the tertiary sector, whose inflationary trend is carefully monitored, the rate of increase in sales prices is decreased again. However, the situation is somehow worsened given the increase in costs, already relating to high. All this probably will not prevent a new lowering of the reference interest rates by the ECB at the next meeting of June 5, in part due to the drop in the price of goods and an accelerated rate “.
The other macroeconomic data of the week that captured the attention of the investors came from the USA. The Unemployment subsidy requestshave reached the highest level in eight months, and more than expectations have increased. Since it was added to the widespread one, on the eve, on the report on employment in the private sector, which has disappointed expectations. Also among the widespread statistics, it was learned that the commercial deficit, however, recorded a more drastic drop than the analysts foreseen, after the March recorder of March. The entry into force of the duties has significantly reduced imports. The highlight of the week, the one on U.S. labor markethighlighted a growth, in May, of 139 thousand new jobs, above the expectations of analysts, but slight flexion compared to the previous month. “The world of work begins to highlight some weaknesses, in particular with the strong downward reviews of the previous months, increasing doubts about the actual strength of the last period. We believe that these data should not, however, change the choices of the Federal Reserve in monetary policy in the next June meeting, explains Filippo Diodovich, Senior Market Strategist of IG Italia”. The equity markets reacted positively after the announcement of the data in the hope that the Fed will be convinced to cut the rates in the July meeting.
The euro is approaching the maximum since April
The expectations of a pause for the cutting of the rates in the Eurozone, by the ECB, gave the euro sap with the euro/dollar gearbox that has reached a maximum of $ 1,1473, bringing the top from November 2021.
In partial recovery, oil prices Pressure by pressure from the press rumors that Saudi Arabia would intend to push to continue increasing the production of the OPEC+ at high pace also in August and, potentially, September to recover market shares.
The weekly performance of bags
The best performance of the week is recorded by the Frankfurt square which brings home a rise of 1.55%. Well Milan with +1.5%, followed by London with a +1.39%. Madrid gains 0.93% while Paris limits the rise to 0.3%. The ending settles up for the Wall Street bag.
The best and worst in Piazza Affari
In Piazza Affari, among the best qualifications, STM Fly of 11.1% driven by rumors about the possibility of a revision of the corporate structure and the news of the cut of 5 thousand jobs in three years. Well Recorded +6.3% with assists by analysts. The Popolare di Sondrio (+3.5%) also raised: Consob approved the offer document relating to the volunteer OPS promoted by Bper Banca on the totality of ordinary shares (of Banca Popolare di Sondrio) including its own actions directly and indirectly detained, from time to time, by BP Sondrio, deduced the actions of BP Sondrio already held by Bper. Intesa Sanpaolo tonic (+3.48%). Among the worst securities, Mediobanca who gives 4.4% and Stellantis who loses 4.3%. The luxury is also down, with Moncler and Cucinelli, down by 1.9% respectively and 3.2%.
