Piazza Affari and the others European stocks close down on crucial weekmostly dominated by theawaiting US labor market datareleased today before the Wall Street open. Data that seems to confirm a recessionary picture of the US economy and that balance the positive effect of the imminent Fed rate cut. A cut that, according to the most recent expectations, could be more robust (50 points instead of 25) and not isolated.
Macro data of the week
The week ended with the publication of the Job Report, which confirmed a weaker-than-expected labor market, highlighting the growth of 142 thousand jobswell below the 164 thousand expectedThe July figure was also revised sharply downwards to below 100,000 units.
The recessionary picture of the US economy had also been painted by the indices PMI and ISM manufacturing. The manufacturing PMI index rose to 47.9 points from 49.6 in July, with a downward revision compared to the 48 of the preliminary estimate, which had already disappointed expectations. Same signals from the index ISM Manufacturing which stood at 47.2 points from 46.8 in the previous month, also falling short of analysts’ expectations, who had estimated an increase of up to 47.5 points.
The Federal Reserve Beige Bookthe usual monthly bulletin of the US central bank, confirmed that 9 out of 12 districts of the central bank show a stable or slowing activity.
Spreads, currencies and commodities
The euro/dollar exchange rate closed the week on a cautious note, closing the last day down 0.24% and the week with a difference of -0.07%.
Last session weak also for Theywhich rose to $2,487 per ounce, losing 0.47% on the last day alone and ending the week down 1.31%. Petrolium (Light Sweet Crude Oil) at 71.12 dollars per barrel fell by 2% in the last session, marking a -11% on a weekly basis always on signs of recession and forcing OPEC+ to postpone an increase in production.
On equality it spreadwhich remains at +139 basis points, with the yield on the 10-year BTP positioned at 3.54%.
Weekly stock market performance
Deep red for the main European stock markets, which have suffered from a widespread sell-off. The worst is Paris which dropped 3.78%, followed by Frankfurtwith a clear disadvantage of 3.23%, in the red Londonwhich shows a sharp decline of 2.36%, a negative performance for Madrid which marks a -1.63%. The pan-European index Euronext100 lost more than 4%.
Negative session also for Piazza Affari, with the FTSE MIB which leaves 2.63% on the floor, along the same lines the FTSE Italia All-Share lost 2.76%.
Best and worst
Among the best of the week are some utilities, thanks to their typically defensive nature. In first place jointly HERA and Terna with increases greater than 3%. Follows Enel with a progress of 2.99% and Snam which earns 2.8%.
Among the worst are industrialists and defense which are more capital-intensive. So Leonardo slips by 11% and STMicroelectronics of 9%, also due to the fall in the chip sector at a global level. It is not doing better Moncler which lost around 9%, following the fashion sector, on fears of a weakening Chinese economy.
