US inflation slows and pushes EU stock exchanges, Milan closes +1%. Euro back to 1.1 dollars
After falling producer prices, July consumer price numbers confirm expectations for a September rate cut. Ubs revises profit after Credit Suisse takeover, boosting optimism. Oil falls after US weekly inventory data beat expectations
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(Il Sole 24 Ore Radiocor) - Ubs returning to profit and a slowdown in U.S. inflation pushed European stock markets, which closed the session positive. Consumer prices rose 2.9% in July (the estimate was 3%) and 0.2% on a monthly basis, while the "core" figure met expectations (+0.2% on a month and +3.2% on a year). The figure, which shows the smallest increases since March and April 2021, matched that of the eve of the meeting, which confirmed the slowdown in producer prices, further allaying fears of a recession and fueling investors' hopes that the Federal Reserve may cut interest rates next month.
Thus Milan's FTSE Mib was the best in the Old Continent and closed at +1%, the Paris Cac (+0.8%), Frankfurt's Dax (+0.4%), Madrid's Ibex (+0.3%) and Amsterdam's Aex (+0.1%) were also positive.
Wall Street closes higher after inflation
After the July consumer price data Wall Street closed positive. The Dow Jones climbed 0.61 per cent to 40,007.73 points, the Nasdaq advanced 0.03 per cent to 17,192.60 points and the S&P 500 gained 0.38 per cent to 5,455.11 points.
On the stock front, up Kellanova after the food maker agreed to be acquired by Mars for about $30 billion, or $83.50 a share, in cash. In trouble, on the other hand, Alphabet Class A on rumours that US regulators are considering forcing the company to divest some of its units such as the Chrome browser and Android operating system.
Ubs returns to profit after Credit Suisse acquisition
Also fuelling optimism in Europe were the numbers released by Ubs, which returned to profit after its acquisition of Credit Suisse. The Swiss group ended the second quarter of 2024 with a net profit of $1.14 billion (market expectations were at $528 million). Total group sales amounted to USD 11.9 billion. For Ubs, this is the first positive quarter after two consecutive quarters of losses due to costs incurred to absorb Credit Suisse.
