Apple returns number 1 in capitalisation. EU stock exchanges rebound as US inflation falls, Milan +1.4%
US prices stagnate in May against expectations of a modest rise, slowdown compared to April. Apple overtakes Microsoft and becomes again the most capitalised company in the world, worth over 3200 billion dollars
by Paolo Paronetto and Stefania Blasioli
4' min read
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(Il Sole 24 Ore Radiocor) - Better-than-expected U.S. inflation data for May returned to boost the European stock markets, which bounced back after two negative sessions following the outcome of the EU elections. Last month, the US consumer price index slowed to +3.3% year-on-year, against expectations for a confirmation at +3.4%. This figure gives margins of manoeuvre to the Fed, which in the evening will announce the outcome of the two-day summit and expectations for the coming months. Based on Cme FedWatch Tool calculations, the market is discouraged that interest rates will remain at their current levels over the summer and is beginning to believe more strongly in a 25 basis point cut in September: 61.3% is considered likely.
The inflation figure "puts the Fed back in a position to move towards aprecautionary rate cut later in the year, so that it can stave off the prospect of a recession," commented theJanus Henderson experts, while warning that "today's trend is in favour of a precautionary cut rather than a shift in Fed policy towards an accommodative approach. The Ftse Mib of Piazza Affari thus closed 1.43% higher, regaining 34,000 points, lost on Tuesday for the first time since 6 May. In the rest of Europe, Frankfurt gained 1.49%, Paris 0.97%, London 0.83% and Amsterdam 1.14%.
In the evening, the Federal Reserve meeting confirmed interest rates at 5.25%-5.50%. The dot plot, i.e. the chart of bankers' rate forecasts, anticipates only one Fed Funds cut in 2024, but the new inflation figure for May could lead the central bank to a softer stance at future meetings.
Wall Street closes mixed
.Wall Street closed mixed. The Dow Jones dropped 0.09% to 38,712.47 points, the Nasdaq gained 1.53% to 17,608.44 points and the S&P 500 rose 0.85% to 5,420.96 points. This followed the stable May consumer price figure - compared to the month before - and the slower annual figure. In May, consumer prices were unchanged from the previous month, after +0.3% in April, against expectations for a 0.1% rise. The annual figure slowed from 3.4 % to 3.3 %, against estimates for a confirmation of 3.4 %. The 'core' figure, i.e. excluding food and energy prices, rose 0.2%, thelowest increase in seven months, against expectations for 0.3%. Compared to a year earlier, the core figure rose 3.4% - against expectations of 3.5% and after 3.6% in the previous month - the smallest increase since April 2021. Energy prices rose by 3.7% year-on-year, food prices by 2.1%.
Apple overtakes Microsoft, returns world's most capitalised company
Apple surpasses Microsoft Corp and is once again the world's most capitalised company. At the moment, Apple is worth $3.256 billion, thanks to the day's rise, which follows the eve's rise of more than 7% in the wake of artificial intelligence news. Microsoft is now worth $3,249 billion with today's rise. Apple had been trailing Microsoft since 24 January, according to Dow Jones Market Data. Microsoft spent 96 sessions holding the top of the largest-capitalisation company ranking.
