European Stock Markets Close Mixed as Investors Await Fed Decision
Major European stock markets closed mixed on Monday, with investors keeping a close eye on tensions in the Middle East and eagerly awaiting the upcoming Federal Reserve decision later in the week.
In Italy, the FTSE Mib closed in the green, up 0.1 percent to 34,296.31, while the Mid-Cap index rose 1.0 percent to 47,603.18. The Small-Cap index also saw gains, picking up 1.4 percent to 29,080.39, and Italy Growth closed up 0.6 percent to 8,225.54.
Across Europe, London’s FTSE 100 ended the day in the green by 0.1 percent, while Frankfurt’s DAX 40 and Paris’ CAC 40 both closed down by 0.2 percent.
“The week beginning tomorrow becomes very interesting, not only because of the numerous macro data scheduled, but especially because of the Fed’s decision. While it is true that forecasts seem discounted toward a no-deal, we will be curious to hear Jerome Powell who we hope will give some indication as to when the Fed should start cutting the cost of money,” commented Saverio Berlinzani, senior analyst at ActivTrades.
In macroeconomic news, consumer price inflation in Germany is expected to remain stable in April, according to provisional data from the Federal Statistical Office. The consumer price index is expected to rise 2.2 percent annually in April, unchanged from March.
On the Italian stock exchange, A2A led the list of gainers, closing in the green by 4.6 percent. ERG also performed well, rising 2.4 percent after finalizing a deal for the acquisition of wind and solar plants in the U.S.
Iveco Group announced a global partnership agreement with Longen Power, while Amplifon completed the acquisition of Hearing Instruments and Precision Hearing Aid in the U.S.
However, not all companies saw gains on Monday. Tenaris gave up 0.6 percent after reporting lower profits for the first quarter of the year. STMicroelectronics, UniCredit, and BPM were among the bearish performers on the Italian stock exchange.
In the small-cap segment, d’Amico International Shipping rose 6.2 percent after entering into a construction contract for the purchase of new tankers. Saras also saw a slight increase after receiving approval for a stake acquisition.
Webuild announced a new contract in the U.S., while Itway reported a pretax loss for 2023. Elica signaled a new buyback plan, and Caribbean Company reported an increase in revenues for the first quarter.
Poligrafici Printing ended 2023 with lower revenues and profits compared to the previous year, while BasicNet, FAE Technology, Seri Industrial, and Stellantis are among the companies expected to release results in the coming days.
Overall, European markets are bracing for a busy week ahead, with a slew of economic data releases and the highly anticipated Fed decision on the horizon.
By Claudia Cavaliere, Alliance News reporter