Stock exchanges, Warsh at Fed pushes Europe but not Wall Street. Gold and silver sink
Wall Street in the red on fears that the US Central Bank's monetary policy may be less aggressive than expected. On the currency the dollar gains ground
by Eleonora Micheli and Laura Bonadies
Le ultime da Radiocor
### Morning note: l'agenda di mercoledi' 20 maggio
Chanel: -14,9% a 2,9 mld $ utile netto 2025, vendite +3% a 19,3 mld
Borsa: Europa in chiaroscuro tra incertezza Iran e timori su tech, Milano -0,6%
(Il Sole 24 Ore Radiocor) - European stock exchanges closed the session in positive territory with the market focused on the appointment of Kevin Warsh as the new number one at the Federal Reserve. The news, however, did not warm Wall Street. Gold and silver sank. The former central bank board member is seen by many observers as a 'hawk'. The market is therefore preparing for a monetary policy that is not as accommodative as previously estimated: the dollar rebounded, while gold sank over 10% and silver 31%. Warsh's name, moreover, should guarantee the Fed's independence from politics.
Against this backdrop, the Milan Ftse Mib closed the session up by 1%, thanks to the boost of banks. The other Old Continent listings were also in positive territory: Paris +0.68%, Frankfurt +0.85% and Madrid +2.46%.
January positive for Europe, Milan up 1.3%
European stock markets opened 2026 all with a plus sign: in January Milan gained 1.3%, Frankfurt 0.1%, Madrid 3% and London 2.8%. Paris, on the other hand, left half a percentage point on the ground in the wake offriction with the United States with Trump's threats of new tariffs on champagne and wine at 200% after President Emmanuel Macron's refusal to join the Board of Peace created for the reconstruction of Gaza. The start of the year saw currencies take the lead, with the euro gaining 1.1% against the dollar in a month (+0.5% in the eighth); crude oil rose strongly, with Wti up 12.2% and Brent crude up 14.4%, while gold was up 14.4%.
On a weekly level it was a mixed eighth with Milan (+1.6%) and Madrid (+1.9%) posting the best performances. Paris lagged behind, falling 0.2% weighed down by luxury stocks. On the Milan stock markets, the podium went to Saipem (+5.2% and +28.2% since the start of the year), Mediobanca (+4.1% but -0.9% since the start of the year) and Enel (+3.2% and 4.9%). On the other hand, shares in Fincantieri (-6.2% and -4.2%), Azimut (-3.7% and -0.6%) and Buzzi (-3.4% and -7.8%) performed poorly.
Warsh does not warm Wall Street, stock market down
The appointment of Kevin Warsh as Jerome Powell's successor to the Federal Reserve chairmanship, however, does not warm up Wall Street, which is travelling in negative territory. "Overall, his experience could have a reassuring effect on investors; however, it is by no means a foregone conclusion that Warsh supports aggressive monetary easing. Indeed, during the global financial crisis, he expressed strong misgivings about the extensive use of quantitative easing, fearing its inflationary consequences," explains Richard Flax, Chief Investment Officer at Moneyfarm. "For this reason, some traders interpret his possible Fed guidance as a scenario associated with slightly higher policy rates and a potentially stronger dollar. In any case, Senate confirmation will be a key moment to clarify his positions," he added.
