Stock exchanges, Alphabet worth $4 trillion. Trump's shove at the Fed doesn't scare markets

(Il Sole 24 Ore Radiocor) - Donald Trump's frontal attack on the Fed, with the federal criminal investigation launched on chairman Jerome Powell, does not scare the stock markets. The European stock exchanges, in fact, stem the panic and close almost all in positive territory. Milan, however, failed to move away from parity, despite yet another exploit by Fincantieri. In general, a climate of caution seems to be prevailing in the markets, which favours investors' rush towards safe haven assets (gold and silver hit new records during the day) and weighs on the dollar. However, the level of the clash between the White House and the Fed is unprecedented, with Powell describing the investigation as part of the Washington administration's 'political threats and pressure' to direct the central bank's moves. Paradoxically, the tycoon's assault on the Federal Reserve could also, according to some observers, push back a new cut in interest rates. After the final bell rang, the Old Continent's indices saw Milan's FTSE MIB finish just above par, while Paris' CAC 40 was just below. Gaining ground instead are Germany's DAX 30, the IBEX 35 in Madrid, the AEX in Amsterdam and the FT-SE 100 in London.

Despite fears over the investigation against Fed Chairman Jerome Powell, Wall Street closed higher. The Dow Jones gained 0.17 per cent to 49,590.20 points, the Nasdaq rose 0.26 per cent to 23,4733 points and the S&P 500 advanced 0.16 per cent to 6,977.31 points.

Trump's proposal to cap credit card rates at 10 per cent, for one year, has also caused turmoil in the markets: critics fear that Trump's plan to promote affordability will backfire and limit lending, hurting consumers as well as banks' profitability. But this is also the week of the start of the quarterly season of the big US banks, from Goldman Sachs and JPMorgan Chase to Bank of America and Morgan Stanley. Meanwhile, Alphabet has reached a market valuation of $4 trillion, as Google's parent company's increasing focus on artificial intelligence has dispelled doubts about its strategy.

At Piazza Affari Fincantieri soared after its Norwegian subsidiary Vard signed a EUR 200 million contract with US-based Ocean Infinity for four robot ships. Also doing well were Leonardo - Finmeccanica and Buzzi Unicem. Rising Banco Bpm after the weekend rumours on the possible green light from the ECB in January to increase the share of Credit Agricole (up to 29.9%) and among the protagonists of the risky business also Banca Mps. At the tail end of the main list Lottomatica Group, in the wake of the decline in the online betting market, and Stellantis, which announced plans to phase out plug-in hybrid (Phev) vehicles in North America to focus on traditional hybrids. Purchases on Diasorin, Saipem and Intesa Sanpaolo, down Italgas, Brunello Cucinelli and Terna.

Gold touched new records and for the first time broke through the $4,600 an ounce threshold. Giving new impetus to the precious metal are geopolitical and macroeconomic uncertainties and US President Donald Trump's new attack on the Federal Reserve. The gold future touched a high of $4,600.33, then settled at $4,588.80. The spot contract went as high as $4,469.49, before returning to $4,582.31. Silver also continued to rally, touching $85 at a high of $84.6. "The performance of precious metals is a reminder of how many uncertainties are plaguing the markets: geopolitics, the growth/rate debate and now an institutional risk premium," say experts at Saxo Markets.