Nervous Europe at the start after the Fed: Mps and Pirelli did well in Milan (-0.5%).
European stock markets nervous at the start, following the Federal Reserve’s announcement to cut rates. The indices started positive, slowed down sharply and then recovered in no particular order. Milan, which lost more than 0.7%, recorded a drop of 0.5%. Frankfurt fluctuates on parity, Paris loses 0.25%, while Amsterdam e Madrid they rise by 0.2%. Stable London.
The move by the US central institute was widely expected, but the words with which the number one, Jerom Powell, declared that ‘it might be appropriate to proceed more slowly with the cuts’ gave pause for thought. Thus, investors took profits above all on bank shares, which had soared immediately after the announcement of the US elections, which saw Donald Trump’s victory. So much so that the Dow Jones closed unchanged, while the Nasdaq continued to run. Meanwhile, US futures are stable.
In Europe, the quarterly reporting season is going ahead at full speed. In Milan, numerous companies that have published the numbers are under observation. Mps rises by over 2%, enthusiastically greeting the clearly improving accounts for the July-September period. Also like the quarterly Pirelli and so the shares rise by 2.6%. Unipolafter a weak start, turned upwards (+1.17%) driven by the quarterly report. On the other hand, the Conti effect weighs on Cnh (-5.6% in Milan, although in reality the main price is in New York). The announcement that the climate of confidence among German companies in the automotive sector had worsened further in October penalized them Starred (-2,7%).
On the exchange rate front, the euro is trading at 1.07718 dollars (1.078 closing the day before) and 164.39 yen (165.21 yen), while the dollar/yen cross is at 152.62 (153.16) . Oil is weak with the December WTI at 71.46 dollars a barrel (-1.24%). The price of natural gas traded in Amsterdam rose to 42.1 euros per MWh (+1.99%).
Nervous Europe at the Start Post-Fed: Mps and Pirelli Perform Well in Milan (-0.5%)
Ah, Europe—bless its cotton socks! It’s early days, and already it’s more twitchy than a cat at a dog show. The reason? The Federal Reserve, or as I like to call them, the central banking equivalent of a magician pulling a rabbit out of a hat—always a bit shocking and everyone gasps. They’ve decided to cut rates, which is usually where you stand up and cheer. Except this time, people are wondering if it’s not just a ‘wait and see’ kind of gesture. Talk about mixed signals! It’s like being told you’ll get dessert only for the chef to show up and say, “Maybe just a taste.”
So what’s the deal with the European stock markets today? Well, they’ve started off as lively as a toddler in a candy store—positive vibes all around, until someone hijacked the Wi-Fi and it all went downhill from there! Milan swung like a pendulum—from a 0.7% drop to a 0.5% loss. It’s like watching an Italian restaurant with an all-you-can-eat pasta deal and just praying there’s enough sauce! Meanwhile, Frankfurt is holding its ground, pretending to be Switzerland (but let’s face it, that’s a stretch!). Paris is like that dramatic friend we all have, down 0.25% and shouting about it, while Amsterdam and Madrid can’t decide if they want to dance up by 0.2% or just stand still. London? Well, it’s stable—probably sipping on a cup of tea and reading the news.
Now, let’s talk about central banker-to-the-stars, Jerome Powell, the man whose voice puts Wall Street to sleep and then suddenly wakes it up with a jolt! He hinted that “it might be appropriate to proceed more slowly with the cuts.” If that isn’t a classic case of hedging your bets, I don’t know what is. Investors have swiftly taken profits, particularly on bank shares that have skyrocketed after the excitement of the US elections and Mr. Trump’s electrifying comeback. The Dow Jones? It’s as stable as my grandma’s old Ford—sitting unchanged! Meanwhile, the Nasdaq is off gallivanting like it’s just discovered a secret stash of chocolate.
Back over to our side of the pond, the quarterly reporting season is in full swing, and there’s more back and forth than a tennis match! In Milan, a host of companies are being scrutinized like a contestant on a cooking show. MPS is having a good day, shooting up over 2% after reporting numbers that are less grim than expected—good job, team! Pirelli shares are up 2.6%, giving us all a reason to tire ourselves out with applause. Meanwhile, Unipol had a rocky start but pulled itself up by its bootstraps, rising 1.17% like a dramatic comeback hero in a rom-com. On the flip side, Cnh is taking a hit, like a badly placed pie in the face—down 5.6% in Milan, and not for the first time, I’m sure!
The automotive gods are not smiling upon us either, as the sentiment among German companies has dipped further. That ‘Conti Effect’ hit hard, resulting in a 2.7% loss for the Starred index. That’s more bruised than a piece of fruit after a vigorous boxing match!
Now onto the exchange rates—quick! The euro is trading at 1.07718 dollars, slipping slightly from the previous day’s 1.078, while the yen is taking a similar scenic route, coming in at 164.39 yen. The dollar/yen cross is also shuddering a bit at 152.62—but hey, it’s all in a day’s travel! Oil prices? Weak. They’re nosediving to about 71.46 dollars a barrel, because everyone loves a good oil drama. Meanwhile, natural gas in Amsterdam has decided to have its moment in the spotlight, climbing 1.99% to 42.1 euros per MWh, probably feeling like the star of a reality show.
So, folks, as Europe navigates these choppy waters of stock, rates, and European confetti, we’re left wondering: is it time to pop the champagne or simply hold onto our wallets? Let’s just hope this market doesn’t turn out to be one massive game of musical chairs!
With a sharp, observational tone and cheeky comments, this writing mimics the stand-up styles of Jimmy Carr, Rowan Atkinson, Ricky Gervais, and Lee Evans, presenting the article with a lively personality while still delivering the facts.
Nervous Europe at the start after the Fed: Mps and Pirelli did well in Milan (-0.5%).European stock markets showed signs of anxiety at the beginning of trading, reacting to the Federal Reserve’s anticipated decision to lower interest rates. The major indices began the day on a positive note but quickly experienced a sharp decline before staging a recovery that lacked consistent momentum. In Milan, which initially fell by more than 0.7%, the overall decline settled at 0.5%. Frankfurt displayed fluctuations around the neutral point, while Paris experienced a slight dip of 0.25%. Conversely, Amsterdam and Madrid saw modest gains of 0.2%, and London remained stable amidst the volatility.
The Federal Reserve’s action was widely anticipated, yet Fed Chair Jerome Powell’s remarks hinting that “it might be appropriate to proceed more slowly with the cuts” sparked a cautious reaction among investors. This resulted in profit-taking, particularly in bank shares that had surged following the announcement of Donald Trump’s electoral victory in the US elections. Consequently, the Dow Jones index closed the day unchanged, while the tech-heavy Nasdaq continued to advance. Meanwhile, US futures maintained steady values as investors kept a close watch on market developments.
In Europe, the quarterly earnings reporting season is in full swing, with many companies from various sectors attracting significant attention. Milan saw notable movement in its stock prices, particularly for MPS, which observed a robust increase of over 2%, buoyed by reports of significantly improved financial results for the July-September period. Pirelli, equally buoyed by positive quarterly outcomes, saw its shares climb by 2.6%. Following a sluggish start, Unipol turned positive with a gain of 1.17%, propelled by their quarterly results. In stark contrast, the sentiment surrounding Cnh was adversely affected by the ‘Conti effect,’ which saw its shares plummet by 5.6%. Additionally, disappointment in the automotive sector was reflected in the performance of Starred, which dropped by 2.7% due to worsening confidence among German companies noted in October.
On the exchange front, the euro is currently valued at 1.07718 dollars, a slight decrease from the previous day’s close of 1.078. It is also trading at 164.39 yen, down from 165.21 yen, while the dollar/yen exchange rate sits at 152.62, a decline from 153.16. The oil market remains subdued, with December WTI priced at 71.46 dollars per barrel, reflecting a downturn of 1.24%. In contrast, the price of natural gas traded in Amsterdam has risen to 42.1 euros per MWh, marking an increase of 1.99%.
Is led to profit-taking, particularly in the banking sector, which had surged following Donald Trump’s election victory. As a result, the Dow Jones closed unchanged, while the Nasdaq continued to rally, showcasing the disparities in market reactions.
In Europe, the quarterly earnings season is in full swing, with several companies drawing investor attention. In Milan, shares of Monte dei Paschi di Siena (Mps) surged over 2%, buoyed by favorable financial results for the July-September period. Similarly, Pirelli’s quarterly report spurred a 2.6% increase in its stock price. Unipol, after a bumpy start, managed to inch up by 1.17% as strong earnings helped regain investor confidence.
However, not all was rosy in the markets, as Cnh Industrial faced significant losses, plummeting by 5.6% in Milan, largely influenced by negative shifts in the automotive sector sentiment among German companies, which fell further in October. This was compounded by a 2.7% drop in the Stoxx automotive index, showcasing the sector’s sluggishness.
Turning to currency markets, the euro’s value dipped slightly against the dollar, trading at 1.07718, while also seeing a loss against the yen. Oil prices continued their downward trend, with WTI crude settling at $71.46 per barrel, a decline of 1.24%. Meanwhile, natural gas prices in Amsterdam increased by 1.99%, reaching €42.1 per MWh as the energy market maintained its volatility.
as Europe wrestles with the aftershocks of the Fed’s announcements and navigates through a busy earnings season, investors are left pondering their next steps amidst uncertainty—whether to celebrate small victories or tighten their budgets accordingly.
