Stock exchanges, US inflation not enough: banks weigh down Milan (-1.7%). A mixed week for Europe

(Il Sole 24 Ore Radiocor) - European stock exchanges ended the last session of the week in mixed order, with Milan slipping below 46,000 points (-1.7%), weighed down by declines in Prysmian and b>banks. The latter sector saw widespread declines across the Old Continent (Euro Stoxxx -3.26%) and is attributable to growing bets that the Fed may cut interest rates after inflation data came in below expectations, down to 2.4%. In the Old Continent, of note was the Eurozone's Q4 GDP, which posted a 1.3% increase on a trend basis. As the quarterly earnings season continues, technology stocks continue to be the special watchers, with investors concerned that Big Tech's spending on artificial intelligence is excessive and unable to generate the expected returns. Thus, in addition to Milan, Paris (-0.3%) and Madrid (-3.12%) also ended trading in the red. The other stock markets, on the other hand, were up.

European stock markets also experienced a mixed performance in the eighth trading session, with Milan paying the price for the decline in asset management and banks after the sprint of the first few sessions, ending the eighth trading session down 1%, behind only Madrid (-1.5%). Frankfurt (+0.7%) and Paris (+0.5%) fared better. Turning to equities, asset management stocks paid the price for fears that the AI may penalise the sector. Fineco was the worst performer, losing 13.7%, followed by Banca Mediolanum (-11.7%). The rekindling of expectations for a rate cut by the Fed fuelled fears of a reduction in banks' margins. Bper thus lost 8.6%, Bpm 8.5% and Popolare di Sondrio 8.2%. On the flip side, the post-accounts rally brought Ferrari's weekly gains to 14.7%. St (+14.4%) benefited from the strengthening of its deal with Amazon in the AI cloud. Assumptions on capital reorganisation then rewarded Inwit (+11.4%); Tim (+7.4%) also did well with solid accounts from Tim Brasil and Stellantis (+8.2%).

Overseas Wall Street travelled cautiously after the inflation figure fell below expectations. Consumer prices increased 0.2% in January from the previous month, according to the Labour Department, against expectations for a 0.3% rise. The annual figure fell from 2.7 % in the previous month to 2.4 %, against expectations for a decline to 2.5 %. The 'core' figure, i.e. the one adjusted for the food and energy price component, rose by 0.3%, in line with expectations.

Turning to equities, semiconductor giant Applied Materials traded with double-digit gains on the back of solid financial results and an encouraging outlook. Purchases were also made on Airbnb as investors welcomed the short-term rental platform's optimistic outlook. Pinterest fell sharply after the company posted disappointing fourth quarter results and then presented weak forecasts.

On the stock market, Inwit (+5.16%) closed at the top of the list in the wake of rumours according to which Ardian, in possession of 31% through the holding company Daphne (in which Tim was present until 2024), is working together with the Canadians of Brookfield Asset Management to rise to 100% and delist the stock from Piazza Affari. Bought also on Generali (+0.6%) also supported by the fact that Citi has returned to cover the stock with a "buy" rating and target price of EUR 43.40 per share . As mentioned, the US inflation data increased pressure on banks with Bper and Popolare di Sondrio closing down 5.5% and slipping to the bottom of the basket. Prysmian (-2.7%) narrowed at the close in the wake of the rumours that US President Donald Trump would ua plan to reduce some tariffs on steel and aluminium products. Indiscretions that, on the contrary, prompted purchases on Tenaris (+2.45%).