Piazza Affari leads the ascent in Europe Low inflation, increases the pressure on the ECB

2019-08-19T10:35:02.781Z

With a growth of 1.39% the Ftse Mib index opens the week with a progress higher than that of the other European markets, all however positive, with the Eurostoxx 50 index (which includes the main Eurozone titles) which marks + 0.84%. Close to a point of ascent London, Frankfurt and Paris. During the night, the Asian stock markets also had a positive trend: more than 2% growth in the Shanghai and Hong Kong indices, close to 3% in Shenzhen. Two factors determine the ascent: on Saturday the central bank of the People's Republic stated that from this month it will introduce a new mechanism for fixing interest rates on loans, which will have the effect of reducing real interest rates. The move is read as an attempt to counteract the economic slowdown, hit by the trade war with Washington. The second factor was precisely the words of US President Trump, who in a tweet in the night wrote: "We are doing very well with China, and we are talking!" The European data include inflation, below expectations: in July, consumer prices rose by 1% on a trend basis (year on year), compared to 1.1% indicated in the flash estimate. This increases expectations regarding the ECB's moves at its meeting on 12 September. Last week, ECB board member Olli Rehn spoke of an intervention that exceeded market expectations as early as September. The prospect of an intervention by the ECB pushes bankers to Piazza Affari, with the sector index rising by 1.96%. This despite the fact that the spread spreads to a high of 211 basis points, with an increase of 5 basis points, with the 10-year BTP yield of 1.47%. Milan's best performers include industrials: Tenaris + 3.48%, CNH Industrial + 3.22%), Tenaris (+ 2.91%), Pirelli (+ 2.30%) and UBI Banca (+ 2.17%). Only share under the parity of Hera, -0.06%. After the race on Friday, down for Mediaset, -2.27%.