Milan – 12:15. The sigh of relief of investors, the Federal Reserve’s decision to leave unchanged the band swinging 0-0.25% the cost of borrowing, lasted until the opening bell of trading. In Europe weigh the strengthening of the euro that threatens exports and makes more complicated the consolidation of the recovery to countries like Italy, where domestic demand is still struggling. More generally, the experts have focused on the words of Fed Chairman Janet Yellen: “The recovery has progressed sufficiently, there is no reason to raise rates now, and we have discussed it in the light of the uncertainties of foreign and ‘ lower inflation, we decided to wait. The concern for China and the emerging markets led to volatility in the markets and, given the significant interconnections between the US and the rest of the world, the situation must be carefully observed. ” Added to this is the weakness of inflation that will reach 2% only in the “medium term”.
Milan loses 2%, London 0.8%, Paris and Frankfurt 2.4% to 2.3%. Down sharply, at the Milan Stock, the luxury sector and industry suffering from the strength of the euro at $ 1.1407 (1.1306 yesterday in closing). The spread is stable in area 112 points, while the yield on the BTP was down 1.78%.
The experts back then to question when it will begin monetary tightening which began September 18, 2007 . And although the Fed has reiterated that monetary policy will remain accommodative for a long time after the first rate hike bets on when it will go on.
According to the Fed funds future chances for close next month They amounted to 25% compared to 37% prior to the announcement yesterday and 50% a month ago. The chances for a rise in December, however, fell to 54% from 62% and 73% respectively. However, the majority of US governors is expected to start normalizing monetary policy later this year, although analysts do not rule out a return to 2016.
In the morning has closed in the sharp decline Tokyo Stock Exchange that paid – as Milan – the weakening of the dollar against the yen: the Nikkei index has left on the ground 1.96%, ending the trading day at an altitude of 18,070.21 points. Throughout the week the index has sold its 1.06 percent. The same fate, last night, for Wall Street after the initial enthusiasm has preferred to focus on “recent global economic and financial developments” that have influenced the Fed. The fact that the central bank “monitors developments abroad” proves caution Relative performance of the economy outside of the US. After arriving to earn up to 193.48 points, the Dow Jones lost 65.21 points, or 0.39%, to 16,674.74. The S & amp; P 500 slipped 0.26%, while the Nasdaq added 0.1%.
In terms of raw materials, the price of gold flying on Asian markets after the Fed’s decision up to $ 1,133 an ounce before stabilizing at $ 1,127 per ounce compared to $ 1,121 the day before. In one week the prices have recovered 1.8%. Slightly down on the oil market after hours in New York WTI crude oil contracts maturing in October are trading at $ 46.75 a barrel. Brent is $ 49.12 per barrel.
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