The European stock exchanges open positively this week of August, characterized by a series of important macroeconomic data. Among these stands out the data on US inflation for July, expected on Wednesday, which will be crucial to determine whether the Fed will confirm its intention to intervene on the cost of money at its September meeting. During the week, data on retail sales in China and Japanese GDP are also due.
Piazza Affari positive with Banca Mediolanum, Azimut and Tim
The Stock Exchange of Milan opens on the rise after last week’s collapse which knocked out Wall Street and the European stock markets: Piazza Affari is currently at +0.60% at 31,974.10 points.
Recording an excellent result are: Banca Mediolanum, Azimut and Tim: the bank opened with an increase of 1.39%, while Tim recorded a +1.18%. Azimut, a company that deals with the promotion, management and distribution of financial and insurance products in Italy, opened with a +1.16%, perhaps due to rumours that they would see Oaktree acquire a stake in Azimut’s Australian subsidiary, with Chairman Pietro Giuliani neither confirming nor denying.
Among other companies, Saipem record a +1.26%, Telecom Italy has seen growth of1.18%, While Stmicroelectronics recorded an increase in1.14%.
Among those who opened in the negative there are above all Stellantis and Nexi bank: Tavares’ company recorded a -0.28%, while Nexi had first opened in positive territory even above the percentage point, to then drop in a few minutes to -0.42%. Brunello Cucinelli (-0.18) and Tenaris (-0.12) also dropped.
European stocks in positive territory but watch out for the Fed and ECB
European stock markets opened the week slightly higher, in the absence of major ideas and volumes for operators. Among the European markets, Frankfurt records a slight increase in 0.31%. London advances with a progress of 0.60%, Madrid the 0.36% While Paris shows a modest increase in 0.27%.
Investors are now focusing on some US macroeconomic data, starting with theconsumer price trends (CPI) due Wednesday. Inflation is expected to have risen only modestly in July, but analysts say that is probably not enough to prompt the Federal Reserve to change its strategy, with a possible interest rate cut still on the table for September.
The European Central Bank, on the other hand, could reduce rates; experts predict a cut every quarter until the end of next year, bringing the end of the easing cycle forward than initially expected, which could thus fall to 2.25% by December 2025, after six consecutive quarter-point cuts. Previously, experts had expected that this level would be reached only in the second quarter of 2026.
Spread at 144 points
The spread between BTp and Bund opens the week continuing its downward trend. In early trading, the yield spread between the benchmark 10-year BTp and its German counterpart stands at 144 basis points, down one point from Friday’s close. In contrast, the yield on the benchmark 10-year Italian bond began the day higher, rising to 3.66% from 3.64% in the previous session.
