Wall Street and the EU close mixed. Maxi Fed cut hypothesis. Nexi plunges in Milan (+0.1%)

(Il Sole 24 Ore Radiocor) - The European stocks closed in mixed order on a day in which hopes for a maxi- Federal Reserve interest rate cut overshadowed fears over the wars in Ukraine and the Middle East, as well as the political situation in France. The downward revision of the numbers on the US labour market, on the other hand, has made an easing of monetary policy next week by the Fed now certain and has put on the radar the possibility of a double cut of 50 points. Also on the central bank front, in Europe the ECB is expected to maintain the status quo at its Governing Council meeting on Thursday 11 September. Investors also continue to assess the political situation in France, as well as developments in the wars in Ukraine, with the shooting down of Russian drones in Polish airspace (and thus NATO), and in the Middle East.

Against this backdrop, Milan (+0.12%) managed to hold on positively, despite the thud of Nexi (-9.5%).

Wall Street's performance was mixed: The S&P 500 closed up 0.3%, while the Dow Jones lost 0.5% and the Nasdaq gained 0.1%. The result came after manufacturing prices in the US unexpectedly fell from the previous month. In fact, the figure fell by 0.1%, against expectations for a 0.3% rise. Compared to the same month in 2024, prices rose 2.6%, against expectations for 3.3%, after 2.7% the previous month (revised from 3.3%). On equities, the stock of Oracle is rallying, after the software company released a mixed earnings report and lower-than-expected second-quarter forecasts, but revealed a significant increase in its outstanding order book, thanks to its artificial intelligence business. In detail, this rose to USD 455 billion, up from only USD 138 billion in the fourth quarter. The figure is indicative of the intense demand for artificial intelligence server rentals in the cloud, a business the company has only recently entered after years in the database market.

Among the main Milanese stocks, Mps and Mediobanca (both around +1.1%) rose but with less momentum than on the eve after Rocca Salimbeni's takeover of Piazzetta Cuccia. The subscription period will reopen for another 5 trading days from 16 to 22 September, which could further consolidate Siena's position. Positive closing for Leonardo (+2.4%) , which benefited from the escalation of tensions in the war in Ukraine with Russian drones shot down in the airspace of Poland (and therefore of NATO), as well as from the talks with Airbus and Thales on the creation of a European champion of space and satellite activities. According to rumours, due diligence and notification to stakeholders and antitrust authorities are underway. Purchases also rewarded Prysmian (+1.8%), thanks to a report by Bofa analysts, and Saipem (+2.4%) which won a new $1.5 billion contract in Turkey. At the other end of the list Nexi (-9.5%): Barclays analysts cut the target price on the stock to EUR 4.1 from EUR 4.5.

On the currency market, the euro/dollar remains little moved in the 1.17 area, after the greenback's recovery on the eve of the meeting. Limited reaction on the market to the political crisis in France: the single currency weakened on the eve of the event, but without registering too much of a shock. Despite the rise in French government bond rates, 'the most important fluctuations are currently coming from the dollar' and the fall of the government 'on Monday was predictable', explained Antje Praefcke of Commerzbank, and had already been absorbed by the markets.