The week has been negative in stock markets, including Piazza Afari.With investors focused on the message that arrived on Wednesday evening The Fed now appears more cautious on the pace of interest rate cuts.. As expected, the U.S. central bank cut rates by 25 basis points at its December meeting, with only one key change in the FOMC statement: the forward guidance language now refers only to the “magnitude and timing of additional adjustments.” is Adjustment”; Chairman Jerome Powell also made it clear at the press conference that the slow pace of cuts is the main issue, arguing that inflation is still moving in the right direction and noting that the job market is still cooling. Yes, if only slowly.
Other central banks
Today’s Russian Central Bank kept the benchmark interest rate at 21%, against expectations of a fresh hike aimed at countering price rises, a decision influenced by the already limited impact of the previous 200bp hike in October. However, the week was eventful for central banks. There Bank of Japan It decided to keep interest rates at 0.25 percent, with a majority of 8 to 1, meeting analysts’ expectations. There RiksbankSweden’s central bank has decided to cut the reference rate by 0.25 percent to 2.50 percent to provide further support to the economy and help stabilize inflation on target. There Norges BankNorway’s central bank has decided to keep the reference rate at 4.5 percent, but has indicated that a cut is likely in March 2025. Bank of England It ended its last meeting of the year with a decision to leave interest rates unchanged (it has already raised its key rate from 5.25% to 4.75% this year in two quarterly percentage point moves). .
PCE and its impact on Fed
The most important macroeconomic indicator of the week is almost here. On Friday afternoon, the US Bureau of Economic Analysis (BEA) reported that personal consumption expenditures (PCE) rose 0.4% in November 2024, up from +0.3% the previous month and +0.5% expected by analysts. was low, while personal income was recorded. An increase of 0.3%, lower than the market estimate of +0.4% and compared to the +0.7% recorded in the previous month. But above all The PCE price index covers the Fed’s preferred measure of inflationshowed a positive change of 0.1% on the month (+0.3% last month and +0.2% expected by analysts) and 2.8% on the year, below the 2.9% expected by analysts, as in October. That contributed to U.S. stock market volatility, with Wall Street – after opening lower – higher on better bets that the Fed will cut rates next year.
Today’s meeting in Milan
between the Markets of the Old Continent Weaker Frankfurt, which showed a slight decline of 0.27%, slight declines for London, which saw a smaller decline of -0.26%, and thoughtful Paris, with a partial decline of 0.27%.
For the Milan Stock Exchange to close at par, with FTSE MIB which stands at 33,766 points. On the same line, the FTSE Italia All-Share remains around the parity line, closing the day at 35,956 points. FTSE Italia Mid Cap rose moderately (+0.69%); Along the same lines, the FTSE Italia Star was slightly positive (+0.26%).
is at the top of the rankings. The most important topics in Milanwe find Amplifon (+1.64%), Brunello Cucinelli (+1.45%), Italgas (+1.32%) and ERG (+1.29%). However, the biggest decliner was Saipem, which closed the session at -6.09%. Sales are concentrated at Telecom Italia, which is down 3.67%. Sales on Nexi, which recorded a decline of 2.16%. Banca Popular de Sondrio hesitated, with a modest decline of 1.46%.
