Stock market indices in Europe worsen again in the final, the decline began after the opening of Wall Street. In Milan, the Ftse Mib index, just above parity at 15pm, closed at -1.70%. In the rest of Europe London -1.28%, Frankfurt -1.28%. In New York, the Dow Jones fell by 1.61% and the Nasdaq by 1.52%.
Last night the American giant JP Morgan won the auction to acquire First Republic Bank, placed under extraordinary administration by the American federal supervisory authorities. The banking sector on the stock exchange reacted positively until the opening of the American markets, and then fell sharply: -2.14% for the sector index in Milan, with the largest declines for Mediobanca, -3.41%, and Banca Mediolanum, -3.17%.
In the United States, regional bank stocks fell sharply. The benchmark index (SPDR S&P Regional Banking ETF) fell by 6.34%,
Energy stocks fared worse, -3.80% for the sector index in Milan: at Piazza Affari the biggest declines were for Saipem (-7.32%), Tenaris (-5.36%) and Eni (-4.19%).
Brent oil fell 3.5% to $76.5 a barrel. Gas traded in Amsterdam remains below 40 euros per megawatt hour for the fifth day, at 38.4 euros (-1.18%).
On the opposite side, higher increases for StMicroelectronics (+2.07%) and Campari (+2%), which published quarterly accounts.
During the first part of the session, investors mainly looked at Eurozone inflation and in particular core inflation, which does not take energy and food into account. It fell from 5.7 percent to 5.6 percent. A positive figure that partly offset a more negative indicator, that of the purchasing managers' indices in the Eurozone, which in April fell from 47.3 to 45.8, the lowest in 35 months and below 50, that is, the boundary between the contraction and the expansion of the economy.
Today begins the two-day meeting of the board of the US Fed (FOMC), the announcement of rates is expected tomorrow evening. CME Group's projections, based on the price of Fed Funds 30-day futures, say that the probability of a 25 basis point hike is 94%. On Thursday it will be the ECB's turn.