The European stock exchanges are moving little and without direction, waiting for the data on American unemployment benefits and the start of Wall Street. The indices further consolidate the record at the beginning of the week, as in the session of Wednesday 7 April, also thanks to the reassurances of the Fed, which confirmed that it will maintain the attitude accommodating waiting for confirmation from the macroeconomic data on the recovery before slowing down its program of purchases of securities on the market.
“The ultra-expansionary monetary policies and the very generous subsidies to American families of the American Rescue Plan of the Biden government create a ‘enormous liquidity that partly spills over to the financial markets», Comments Luigi Nardella of Ceresio Investors. “Excessive valuations are evident in various market segments – he adds – from the euphoria of the Spac phenomenon in the United States to some titles related to electric cars, energy transition, as well as some software companies or new online business models”. advises, careful selection of stocks and sectors at this stage is critical.
FTSE Mib stock market trend
Luxury in the spotlight in Milan, Saipem and Moncler rise
In Piazza Affari the FTSE MIB tried in vain to touch 25 thousand points, a quota never touched since February 2020, and then folded back weighed down by the bankers. Saipem remains brilliant, thanks to the recommendation of Mediobanca Securities and the agreement with Siram Veolia for energy transaction projects, and Moncler, supported by the opinions of Jefferies and Mediobanca analysts. In the sector, the declarations of Giorgio Armani take center stage, opening a joint venture, perhaps with an Italian group, for his fashion house. Assets under management are highlighted after Azimut and Finecobank’s March collection data. Out of the Ftse Mib Cairo Communication stands out: the group would have reached an agreement with Dazn for the rental of functional band for the creation of channels on the digital terrestrial channel of the streaming operator that will broadcast the Serie A matches from the 2021-22 season.
The euro slows down and returns below $ 1.19
On the currency market, the momentum of the euro weakened, which yesterday exceeded $ 1.19. However, the greenback confirms the signs of weakness following the publication of the March minutes of the Federal Reserve’s FOMC meeting. “For several weeks the currency markets have been dominated by fears of a jump in inflation caused by a sudden acceleration of economic activity, which would have forced the Fed to change its policy – ActivTrade analysts point out – however, Fed officials have shown that they are dedicated to supporting the US economic recovery, even if this could cause temporary overheating of the economy; a position that can cause further losses for the dollar ”.
Oil in the red, the WTI under $ 60
Weak session for oil, with the WTI falling below $ 60 a barrel. “In the last two weeks the WTI has moved into a side trading fork but it is clear that the pursuit of black gold has now lost momentum,” said Carlo Alberto De Casa of ActivTrades. «After months of upside, investors now seem to take for granted the expectations of a recovery after last year’s crisis. To generate new rallies, investors will therefore need new positive factors for the price of crude oil, ”he adds. The new elements should not come from OPEC +, which has already outlined its strategy, but rather from “more solid data on the economic recovery, especially new positive signs on the demand side”. From a technical point of view, the first support zone is at $ 58.30 and a more significant support is between $ 57.20 and $ 57.50.
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