MILAN – Markets without a clear direction as a result of Fed decisions that had little effect on its official communications, deferring the reduction to the value of money. A widely anticipated position in which nuance matters more than anything else. The median of the governors’ expected rates (point plot) shows that on the board only one rate cut is expected this year instead of the three previously considered reductions.
On the other hand, Chairman Jerome Powell has kept the door open to changing trajectory on the flyalso because inflation data coming in shortly before his press conference showed a slightly larger decline than expected and may not have been fully factored into the Fed’s estimates.
Asian stocks moved positively, pushing against American stocks, trusting precisely the possibility that the Fed’s conservative approach to the data does open the door to a more dovish stance in the future. Optimism spilled over into the bond market, where Treasuries posted clear gains after the release of inflation data. Paradoxically, as soon as the Fed issued its official forecast of a single cut in 2024, the market began to return to two.
Still, weakness continued for the Tokyo Stock Exchange, which has a decision to make tomorrow Bank of Japan: a decrease in the purchase of securities is expected
Istat, in the first quarter +394 thousand employed in annual calculation
In the first quarter of the year, the number of employed persons increased by 75 thousand units compared to the fourth quarter of 2023 (+0.3%), with the growth of full-time employees (+92 thousand, +0.6%) and independent workers (+32 thousand). , +0.6%), which more than compensated for the decrease in full-time employees (-49 thousand, -1.7%). The employment rate reaches 62.0% (+0.1 point). This is reported by Istat. Year-on-year growth is 394 thousand employed (+1.7%), also in this case with the participation of permanent employees (+3.1%) and independent workers (+1.0%); wage earners, on the contrary, decreased (-4.6%)
Tokyo loses last 0.4%
The Toyko stock market closed lower, with the Nikkei 225 index losing 0.4% to 38,720.47. The Bank of Japan is not expected to raise its key rate at the end of Friday’s meeting, but the economy is under pressure from the dollar’s continued rally against the Japanese yen. “Given the recent Fed hawkish outcome, if the BOJ follows its usual accommodative tone in terms of policy settings, it could pave the way for a continuation of the US dollar’s uptrend against the Japanese yen,” Yap Jun said. Rong, an IG market analyst, said in a comment. The US dollar fell to 157.14 Japanese yen from 156.71 yen in currency trading. The euro fell to $1.0805 from $1.0812.
Chinese stock markets close the session in negative territory amid EU tariffs on Dragon e-cars and speculation of one US Federal Reserve rate cut instead of the previous three, with the Shanghai Composite down 0.28% to 3,028.92, while as Shenzhen lost 0.62% to 1,683.46.
European stock markets are off to a weak start
Major European stocks opened lower after the US Federal Reserve left the key rate unchanged at a range of 5.25% to 5.50% and forecast just one “cut” this year, down from three forecasts in March. In Frankfurt, the DAX lost 0.26% to 18,595.55 points, in London the FTSE 100 fell 0.27% to 8,193.55 points, in Paris the Cac 40 fell 0.12% to 7,855.37 points, and in Madrid Ibex-35 fell by 0.22% to 11,221.00 points. Milan Ftse Mib is -0.15%.
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Wall Street, the future incerti
Mixed Wall Street futures after the US Fed decisions left its benchmark rate unchanged at a range of 5.25% to 5.50% and forecast just one “cut” this year, down from three forecasts in March, explaining that that economic growth continues. at a rapid pace,” while inflation “remains high” despite what Fed President Jerome Powell said was “down from a peak of 7%,” but the recent decline in the cost of living “has been modest.” F Dow Jones futures are -0.07%, S&P 500 futures are up 0.21%, and Nasdaq futures are up 0.69%.
Asian stock markets remained mixed after Chinese shares fell on additional tariffs (up to 38.1%) imposed by Europe on Chinese electric cars, which exacerbated economic concerns, but Hong Kong stocks rallied on Wall Street’s wave. The Hang Seng index rose 0.20%. Seoul Kospi was also positive – +1.42%. However, Shanghai and Shenzhen were negative, losing 0.17% and 0.40% respectively. In Tokyo, the Nikkei lost 0.17%.