Stock market, Piazza Affari clearly rising. Spreads falling
The European stock exchanges they open sharply higher after the Fed's decision to leave rates unchanged and the prospect of three cuts in 2024. Now investors await the verdict of the ECB and the BoE in the middle of the day. The European Central Bank is expected to keep interest rates at record levels and may even hint at rate cuts coming as recent data has highlighted a slowdown in economic activity and inflation.
Also to markets It is important to understand whether today the ECB will begin the discussion on the early reduction of reinvestments of the securities purchased in the PEPP. The Cac 40 index in Paris gains 1.35% to 7,633.07 points, the Dax 30 in Frankfurt records an increase of 1.05% to 16,944.45 points and the FTSE 100 in London rises by 1 .60% at 7,670.60 points.
Business Square sharply rising in the early stages of the session after the Fed's decision which left rates unchanged, as expected, but made it known that next year it will cut them at least three times, one more than expected, thus putting an end to two years of monetary tightening. The Ftse Mib rises by 1.04% to 30,617 points.
On the price list, the financials are mixed (Generali flat, Intesa +0.76%, Unicredit -2%) and the main energy ones are positive (Enel +2.04%, Eni +0.28%). Among industrials, Stellantis gains 1.73%. Tim rises by 1.85% on the day of the board of directors which will examine, among other things, Kkr's request to be able to continue the due diligence for Sparkle until the end of January 2024 and while the presentation of Vivendi's complaint against the resolution with which the board approved the sale of the network.
The spread between 10-year BTPs and German Bunds opens with a sharp decline at 172.4 basis points compared to 176.4 points the day before, with the bond market betting on monetary easing after the Fed's decision and the prospect of three rate cuts in 2024. The ten-year yield drops to 3.785% from 3.934% at yesterday's close.
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