The most important data of the day arrived at 8 am, with the announcement of Germany’s GDP. The preliminary estimate was confirmed, showing a 0.1% decrease in the second quarter compared to the previous quarter. Consumer confidence, as reported by Gfk, also dropped from -18 to -22. These figures follow a decline in business confidence and the Purchasing Managers’ Index (PMI) published last week, all focused on Germany. European stock markets opened higher, with Milan’s Ftse Mib up by 0.42%, London rising by 0.46%, Paris by 0.25%, and the Frankfurt index almost unchanged at +0.04%.
Last week closed with significant gains after the announcement by the US Fed and its governor that it was time to cut interest rates. Wall Street’s Dow Jones index reached a historic high during the day, up by 0.16%, while the Nasdaq for technology stocks fell by 0.85%. Tomorrow’s very much anticipated quarterly report from Nvidia, a microchip giant, might bring some market fluctuations. Concerns were raised by tensions in the Middle East, causing a more than 2% increase in oil prices, especially after the Eastern Libya government of Khalifa Haftar blocked oil exports in a conflict with the UN-recognized Tripoli government. The Brent price remains stable today at $81.35 per barrel (October 2024 futures).
Piazza Affari saw a strong performance today, particularly in the utilities sector which gained 1.04%. This was followed by the consumer goods and energy sectors. Among the main stocks, Enel, Campari, Nexi, and Erg experienced the biggest gains, all rising just over 1%. Only 5 stocks on the Ftse Mib were down, with Leonardo showing the largest decline at -0.27%. The overall trend seems positive despite some uncertainties related to the global economic situation and geopolitical tensions.
Despite Germany’s GDP decline and lower consumer confidence, European markets opened on a positive note, driven by news of a potential interest rate cut by the US Fed. This sentiment was reflected in the performance of major stock indices like Milan’s Ftse Mib, London, Paris, and Frankfurt. Investors are eagerly awaiting Nvidia’s quarterly report, while concerns about tensions in the Middle East continue to impact oil prices. Piazza Affari in Italy witnessed a good day, with utilities leading the way followed by consumer goods and energy sectors, indicating a relatively stable market environment.
The previous week ended with strong gains following the Fed’s announcement of possible interest rate cuts. Wall Street saw record highs in the Dow Jones index, although the Nasdaq saw a slight decline. The ongoing tension in the Middle East, specifically in Libya affecting oil exports, has been a cause for concern. Despite these uncertainties, Piazza Affari had a positive day with the utilities sector performing well. Investors are closely monitoring economic indicators and geopolitical developments to assess market volatility and make informed decisions. Overall, the European markets are demonstrating resilience amidst a complex global economic landscape.
