(Il Sole 24 Ore Radiocor) – European markets are showing positive momentum as investors await crucial US inflation data, which will shape the Federal Reserve’s future monetary policy decisions. Recent producer price figures for December revealed slower growth than anticipated, easing concerns about inflationary pressures. However, the spotlight now shifts to the consumer price index, expected to rise by 0.4%, mirroring November’s figures. A higher increase could further limit the Fed’s versatility in rate adjustments,with current expectations pointing to just one potential cut later this year.
Uncertainties surrounding the impact of Trump’s policies, notably tariffs, continue to loom over market sentiment. Meanwhile, in the UK, weaker-than-expected inflation data has sparked speculation that the Bank of England might consider a rate reduction in February. Across the Atlantic, the US quarterly earnings season is set to kick off, with major financial institutions like Citigroup, JP Morgan, Goldman Sachs, and Wells Fargo leading the way.
In this backdrop, Milan’s FTSE MIB index is climbing, holding steady above the 35,000 mark, while other European indices are also performing robustly.
Saipem’s Decline in Milan’s Piazza Affari
In milan, Saipem shares are under pressure amidst a broader rally in energy and utility stocks. Eni and Snam Rete Gas are leading the charge, while Iveco Group and prysmian are staging recoveries. Davide Campari is also gaining ground, though banking stocks remain cautious and somewhat subdued.
Market Trends: Euro Strengthens, Commodities Rise, and Telecom Italia Faces challenges
Telecom Italia Under Pressure After Vivendi Appeal Rejection
Telecom Italia shares experienced a downturn as the company’s board of directors reviewed the Sparkle dossier. This decline followed the rejection of Vivendi’s appeal to cancel the sale of Telecom Italia’s network, marking a significant moment for the telecom giant amidst ongoing corporate challenges.
euro Gains Momentum Against the Dollar
In the currency markets, the euro saw a notable rise against the dollar, reaching an exchange rate of 1.029. This shift came after the dollar initially strengthened overnight, highlighting the dynamic nature of global currency fluctuations. Investors are closely monitoring these trends as they impact international trade and economic forecasts.
Crude Oil and Gas Prices Climb
Oil prices surged as optimism grew over a potential truce between Israel and Hamas. Brent crude climbed above $80 per barrel, while West Texas Intermediate (WTI) hovered just below $77. Meanwhile,natural gas prices on the Amsterdam platform inched higher,surpassing €47 per megawatt hour. These movements reflect the interconnected nature of geopolitical events and commodity markets.
eurozone Bond Yields Dip, Spread Remains Stable
Yields on Eurozone government bonds decreased, with the benchmark ten-year BTp yield settling at 3.81%,down from 3.84% the previous day. Despite this drop, the spread between Italian and German bonds of the same maturity held steady at 121 points. This stability in the bond market comes amid anticipation of December’s US inflation data, which could influence global financial trends.
