The main ones European stock exchanges close in the red, while the Milan stock exchange is the only one that manages to stay just above the parity line. Business Square closes like this +0.01%, while London marks a mediocre decline of 0.34%, closing the trading at 8,241.71 points. Paris also falls, showing a disappointing -0.92%, closing the session at 7,431.96 points. Frankfurt closes on parity, offering a -0.08% at the end and closing the trading at 18,576.5 points.
Higher sales in luxury stocks
At Piazza Affari, utilities are showing a good performance in anticipation of the possible cut in interest rates, with Enel growing of 1.6%, Erg to +1.5% And A2A to +1.4%. Tim stands out at the top of the list with a rise of 1.9%. Unipol (+1.5%) and Italgas (+1.3%) also recorded purchases. However, the luxury sector is suffering, with Brunello Cucinelli down 5.2%, Ferrari (-2.3%) And Moncler (-2.2%) due to fears of a slowdown in the Chinese economy. Sales also hit Stellantis (-1.6%) and Tenaris (-1.5%). Outside the main basket, Banco Desio soars with a gain of 7.2% after issuing a 500 million euro bond.
US Private Sector Employment Data Mixed, Wall Street Feels the Effect
European stocks closed mixed as investors focused on early U.S. labor market data. The unemployment rate data, due on Sept. 6, is eagerly awaited to provide a clearer picture of the health of the U.S. economy and gauge the possibility of a 50 basis point rate cut by the Fed at its next meeting.
In the meantime, however Wall Street is trading in negative territory after the release of some labor data. Economic activity in the services sector remained expanding in August, with the ISM services index rising from 51.4 to 51.5 points, exceeding expectations. However, the job market shows signs of slowing, with private sector employment recording a 1.5% decline in August only 99 thousand new jobs, the lowest figure since January 2021, and lower than expected.
For the second quarter of 2024, U.S. productivity, excluding agriculture and government, grew by 2.5%, in line with expectations, while labor costs increased less than expected (+0.4%). In stocks, Tesla stands out with a strong increase of 4.65%, after announcing that it will continue as planned with the launch in Europe and China of its Full Self-Driving assisted driving service.
Spread slightly down to 143 points
The session ended with a slight decline in the spread between BTp and Bund, on a day devoid of significant ideas. At the end of the day, the yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stood at 143 basis points, recording a decrease of 1 basis point compared to the previous value. The yield on the benchmark 10-year BTp also showed a slight decline, closing at 3.64% compared to 3.65% of the previous close.
Stock Market 12:00: Milan goes positive but suffers luxury, waiting for US employment data
In the first part of the session, European stock markets are on a rollercoaster ride. At 12:00 Milan travel positively with +0.29% at 33,779 points, while Paris performed badly with -0.65% and Frankfurt at -0.14%. Positive instead were Madrid (+0.27%) and London (+0.11%).
Attention remains on macroeconomic data, with growing expectations of a possible rate cut by the Fed 50 basis points in September. Crucial U.S. unemployment data for August is due tomorrow, but the first indicative new jobless claims data will be available this afternoon.
Luxury continues to suffer
On the Milan stock market, the luxury sector continues to suffer: Brunello Cucinelli is decreasing by 3.57%as well as Moncler which recorded a loss of 1.57%, although these are slowing down compared to the previous day.
Pirelli & C is also down 0.29%, influenced by Michelin data on the tire sector in July, with a 5% drop in the OE channel. Tenaris (-2.22%) and Saipem (-1.11%) also had a negative session.
Looking at the stocks the rise, Milan goes positive thanks to several stocks: such as Enel, which is at 12 o’clock +1.47% at 6.983 euros. Snam and Erg follow with a gain of 1.33%, at 4.56 euros and 24.36 euros respectively. A2A grows by 1.18% to 2.057 euros, while Terna records a rise of 1.11%, reaching 7.986 euros. Finally, Italgas increases by 0.98% to 5.15 euros.
The banking sector is also doing well: Monte Paschi marks an increase in the1.32%while Banco Bpm closed with a rise of 0.97% at 6.01 euros. Outside the main list, Banco Desio Brianza gained 7.24% after issuing a 500 million euro bond.
Stock Market 9am: Still cautious openings in Europe awaiting US employment data: luxury in Milan is bad
The European stock exchanges They are starting cautiously in the opening session, awaiting further economic data from the United States. Milan opens with a +0.28% at 33,700 points. Others are falling markets of the Old Continent: little movement Frankfurtwhich marks an increase of 0.27%, and the same setting for Londonwhich remains glued to the levels of the day before (+0.02%). Things are worse Pariswith a fractional drop of 0.23%.
The yield on the 10-year BTP falls to 3.57%, with the spread versus the Bund stable at 144.7 basis points. The decline in yields intensified on September 4 after disappointing labor market data in the United States for the month of July.
Stocks Enter New Indices, Here’s Which Ones
In the Italian stock exchange it stands out Diasorin, with an increase of 0.83% to 103.85 euros, driven by the better-than-expected results of the French Biomerieux for the first half of the year and the upward revision of the forecasts for the whole of 2024. Banks also did well, such as Intesa Sanpaolo, which today will be included in the Stoxx Europe 50 index following the annual revision, which recorded a modest +0.18% to 3.72 euros.
Still on the subject of entries into new indexes, also Desio Bank (+7.66% to 5.2 euros) will enter that Ftse Italia Mid Cap on September 23, replacing De Nora (+0.58% to 9.58 euros). In addition, Bper Banca (-0.27% to 4.87 euros) and Unipol (-0.10% to 9.56 euros) will be included in the index Ftse EuroMid always from September 23rd.
In the automotive sector, Stellantis gained 0.19% to 4.56 euros, after announcing the resumption of production in some US plants, with possible further adjustments being evaluated, and after the various drops it has suffered in recent days.
The biggest declines are seen at the top Brunello Cucinelli, with a 2.90% drop to 86.95 euros. Tenaris follows, losing 1.43% and closing at 13.08 euros, while Saipem records a 1.30% drop, falling to 1.897 euros. Amplifon drops 1.11%, settling at 27.71 euros, and Pirelli & C marks a 0.73% drop to 5.438 euros.
Moncler And Stmicroelectronics both close with a negative variation of 0.61%, with respective values of 51.72 and 26.835 euros. Leonardo also loses 0.43%, as does Banca Mediolanum which records a slight decline of 0.27%, to 10.94 euros.
Eyes on the US Economy: Upcoming Key Dates
The crisis continues, with less positive news coming from the United States: economic activity overseas is stagnant or slowing in nine of the twelve districts, while only three districts have seen slight growth.
This is according to the Federal Reserve’s Beige Book, a report published every six weeks based on data collected in the various districts. Inflation remained “modest” on average, in line with what was observed in previous weeks, and wage increases were also limited. The forecast for the coming months indicates a stability in economic activity or a slight improvement.
Markets are focusing on the upcoming macroeconomic data, as the chances of a interest rate cut by the Federal Reserve by 50 basis points in September. Tomorrow will also be a key day, with the release of the August U.S. unemployment data, which could provide crucial guidance.
Spread at 144 points
Eurozone government bonds started the day higher on the Mts electronic secondary market, with a general increase in prices that involved the entire sector. As a result, the spread between BTPs and Bunds remains stable.
In early trading, the yield spread between the benchmark 10-year BTP and the German Bund with the same maturity stood at 144 basis points, the same level as the previous closing. Yields also remained unchanged: the Italian 10-year bond maturing in February 2035 was quoted at 3.65%, unchanged from Wednesday’s close, after a sharp decline from 3.74% recorded the day before.
