US inflation is causing the stock markets to slide. Fed: Appropriate cut in 2024, but not in June

Among the European stock markets, the Ftse Mib of Piazza Affari, after several changes in direction, ended the day in positive territory of 0.28%, driven by banking stocks, which took advantage of the prospect of higher interest rates for longer, with inevitable positive effects on the revenues of credit institutions. MPS (+4.83%) particularly stood out after the Minister of Economy, Giancarlo Giorgetti, indicated 2024 as a decisive year for an aggregation.

On the macro front, investors, as mentioned, see a rate cut in June in the United States as increasingly distant, while the ECB’s trajectory seems clearer, thanks to lower inflation which could lead the Eurotower to act before the bank Central America. Based on the CME FedWatch Tool, the market now considers a Fed rate cut in June likely to only 20.6%, while maintaining the status quo is listed at 79%. Meanwhile, the meeting of the ECB’s governing council is scheduled for Thursday and attention will be focused on words of President Christine Lagarde.

US consumer prices higher than expected

In March, consumer prices in the United States increased by 0.4% compared to the previous month, according to what was communicated by the Labor Department, against expectations for a rise of 0.3%, after +0.4% in February. The annual figure rose from 3.2% in January to 3.5%, with the consensus at 3.4%. The “core” data, i.e. the one stripped of the price component of food and energy goods, grew by 0.4%, against expectations for a +0.3%, after +0.4% in February. Compared to a year earlier, the “core” data recorded an increase of 3.8%, as in February, against expectations for a slowdown to 3.7%. Energy prices increased by 1.1% compared to the previous month, food prices increased by 0.1%; compared to a year earlier, the energy sector recorded its first increase since February 2023, with a rise of 2.1%, the food sector rose by 2.2%.

MPS does well in Piazza Affari. Weak Enel

MPS stood out on the Milanese list: according to Giorgetti the expected wedding, which would conclude the privatization process with the definitive exit of the MEF from the capital, could materialize in 2024. In the sector, the purchases also rewarded Banca Popolare di Sondrio ( +3.44%), Banco Bpm (+2.37%) and Bper (+1.78%).

Sales instead on Italgas (-2.81%), which according to press rumors would have sent a preliminary proposal to acquire 2i Rete Gas. Amplifon also did badly (-4.04%) and Enel (-2.16%) experienced a session under pressure in the aftermath of the very serious accident at the hydroelectric power plant in the Suviana basin.