The inflation data for personal expenses in the United States was slightly higher than expected, with an annual increase of 2.8%, just two tenths above expectations. This data is closely watched by the central bank, which uses it to make decisions regarding interest rate cuts. As a result, Wall Street saw gains today, with the S&P500 rising by 1% and the Nasdaq, which includes technology stocks, seeing a larger increase of 1.78%. Alphabet, the parent company of Google, saw a 9.2% increase in revenue and profits, as well as increased investments in artificial intelligence. Similarly, Microsoft saw a 2.6% increase in its stock price, driven by double-digit revenue and profit growth.
In Europe, the Milan Ftse Mib index rose by 1.12%, reflecting the positive performance of the week. London saw the largest gains, with a 3% increase, led by Anglo American, a mining company that saw a 21% increase in its stock price compared to the previous Friday. A rival Australian group, Bhp, made a £31 billion offer to acquire Anglo American, which was rejected. On the other hand, the Italian stock market, Piazza Affari, saw a decline of 6% for Tenaris. The company’s profits in the last quarter dropped from $1.13 billion to $750 million due to lower sales and margins in the Oil Country Tubular Goods market in the Americas. Similarly, StMicroelectronics saw a 1.99% decline in its stock price after three consecutive increases, and Prysmian and Banca Mps saw higher gains today.
Overall, the market reactions to the inflation data in the US were generally positive, with tech stocks driving gains on Wall Street and mining stocks leading the performance in Europe. The decisions made by the central bank regarding interest rate cuts will continue to impact market movements in the coming days. In particular, the strong performances of Alphabet and Microsoft indicate a positive outlook for the technology sector, while Tenaris and StMicroelectronics face challenges in their respective markets. Investors will closely monitor future economic indicators and corporate earnings reports to make informed decisions about their portfolios.
