European stock markets close the week with large gains, pushed by the new ones stimuli announced by the ECBwhich cut Eurozone interest rates again. In the foreground are industrial stocks, due to the full-blown crisis in the auto sector, and luxury, whose fate remains invariably linked to the fate of the Chinese economy.
There best place at the end of the week it is Milan, with an advantage of 3.3%, While Frankfurt gained 2.2%, Madrid 2.3% e London 1.5%. Queued Paris with an advantage of just under 1%.
The highlights of the week
The week opened with the Columbus Day holiday in USAwhich reduced the operations of the American markets and the volumes traded also in the Old Continent.
The Chinese government announced a series of measures aimed at strengthening the real estate sector and to boost the economy, but did not provide sufficient details on the extent of the announced measures, disappointing market participants.
The highlight of the week is the meeting of the European Central Bank, that he decided to another 25 basis point cut of the reference rate, as widely expected. As for the monetary policy path that Frankfurt will undertake in the coming months, President Lagarde remained cautious and confirmed that “the December decision will also depend strictly on the data”.
There quarterly season has come to the fore: the disappointing numbers of some big names, such as the Dutch chip manufacturer ASML Holding and the luxury giant LVMH were counterbalanced by the strong results of the Taiwanese TSMC and the big American video on-demand company Netflix.
The macroeconomic framework
Featured everywhere i inflation data. In the eurozone the growth in consumer prices was further confirmed slowdown to 1.7% in September. Even Istat confirmed the data on Italian consumer prices for September, the month in which inflation reached lowest level since the beginning of the year at 0.7% trend, well below the ECB target.
In the end, Chinese inflation slowed to 0.4% year on year in September from the previous 0.6%, confirming the difficulties of the economy of the large Asian economy, whose GDP grew by 4.6%, well below the 5% target indicated by Beijing.
Foreign exchange and commodities
The change euro/dollar closes recovering from the lows at 1.0857, even if the week ends with a slight depreciation (-0.7%) of the European currency against the greenback.
Well They which rose to 2,716.3 dollars per ounce, with an increase of 3.3% over the week, while there was a strong reduction in the prices of WTI oil (-8.3%) to 69.18 dollars per barrel due to the easing of tensions in the Middle East and the cut in demand forecasts by the IEA and OPEC.
The market movers
Among the titles highlighted this week it should be noted Stellantiswhich stops on the parity line, after the words of CEO Carlos Tavares on the crisis in the sector provoked bitter controversy from the unions. However, it turned out to be brilliant IVECO (+8.4%) in the wake of Volvo’s positive results.
In light Italian Post Office (+5.4%) which jumped after the stop to the placement of a 14% tranche of the capital, which will probably be postponed until after November 6th.
Among the worst of the week were oil-related stocks, such as Eni, Saipem and Tenaris. The same goes for luxury stocks, such as Salvatore Ferragamoin the wake of the disappointing accounts of the French giant LVMH. It’s an exception Brunello Cucinelli which gave positive results.
