Stock exchanges, Europe hangs on Trump. Milan (+1%) breathes with Ferrari and utilities
Powell dismisses specter of Fed rate tightening. Oil on the rise. Euro below 1.15 dollars. Spread down to 94 points, BTp yield back below 4 per cent
by Ivan Torneo and Paolo Paronetto
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(Il Sole 24 Ore Radiocor) - The fates of the war in Iran and the mixed messages from US President Donald Trump on the outlook for the conflict continue to affect the European stock markets. Continental stock exchanges experienced a volatile session, managing to close in positive territory thanks in part to the performance of Wall Street, which recovered after its worst week since October (fifth consecutive week of losses) had brought it close to a technical correction. The Milanese FTSE MIB thus gained ground, taking advantage of the momentum of Ferrari and the good performance of utilities and energy stocks. On the bond front, yields on the main government bonds, which in the past few hours had climbed to their highest levels in years, corrected as we await tomorrow's Eurozone inflation data for February, which will register the impact of the energy shock linked to the war in Iran.
Wall Street closes contrasted
Wall Street, in the end, closed the session with contrasts, conditioned however by the uncertainties in the Middle East and by the oil that ended the exchanges above 100 dollars a barrel, for the first time since the beginning of the war of the USA and Israel against Iran: the Dow Jones rose by 0.11%, to 45,216.14 points, while the Nasdaq gave up 0.73%, to 20,794.64. Also down was the S&P 500, at 6,343.72 points (-0.39%).
Powell dismisses spectre of Fed tightening
Also improving the mood of investors were the words of Federal Reserve Chairman Jerome Powell, who said that the US central bank is inclined not to react automatically with a monetary tightening to the rise in oil prices linked to the conflict with Iran. US monetary policy, he explained, is "in a good position" to wait and assess developments. Powell acknowledged that rising energy prices are bound to push inflation upwards, but he also explained that the central bank's tools are ineffective against supply shocks of this kind
G7: 'Ready for every measure for energy market stability'
The G7 finance and energy ministers, meanwhile, said they were prepared to 'take all necessary measures' to ensure energy market stability. The ministers also reiterated their 'firm commitment to well-functioning, stable and transparent energy markets'. "We support appropriate efforts to maintain adequate supply in global oil and gas markets and note the International Energy Agency's options to manage demand, based on country-specific circumstances, to help stabilise market conditions and limit excessive volatility," they said in a statement.
Mps in the spotlight, Eni well with oil above 100 dollars
At Piazza Affari, as mentioned above, purchases rewarded Ferrari , supported by a positive rating from Jp Morgan (overweight with expectations that upcoming results and cash flow data will confirm the company's full-year guidance) and Charles Leclerc's podium finish at the Suzuka Grand Prix in Japan. Under the spotlight Banca Mps , while the countdown to the shareholders' meeting in mid-month has begun, with the board of directors and the CEO, Luigi Lovaglio, at loggerheads. According to rumours published by Reuters, the ECB also has reservations about the curriculum vitae of Fabrizio Palermo, indicated by the board of directors as the next head of the company. The bank's shares lost share, along with those of its subsidiary Mediobanca .
