(Il Sole 24 Ore Radiocor) – the European stock exchanges they put themselves in a stand-by position after the indications of the President of the Federal Reserve Jerome Powell on a cautious approach to the reduction of stimuli and are already looking at Friday’s data on the US labor market that could dissolve the remaining doubts on the beginning of the so-called tapering . In this context, today’s session, with London closed for holidays, was extremely cautious with the indices not far from parity and ready to close a month of august still positive with Amsterdam and Piazza Affari around + 4% overall.
On Friday in Jackson Hole, the number one of the US central bank assured that the exit from the current ultra-accommodative monetary policy will be “gradual and prudent” and will take into account Covid risks, continues to support equity markets, even if the absence of precise indications on the timing of the launch of the so-called tapering and the speed with which this will take place advises investors to be cautious. For this reason, the market awaits the publication of data on US unemployment this week, which will be able to provide evaluation elements capable of clarifying the Fed’s strategy. Piazza Affari closed flat in the FTSE MIB.
Wall Street always aims high
Yet another record for the indices S&P500 e Nasdaq of Wall Street. The focus is on Powell’s words regarding monetary stimulus and the situation in the labor market. The uncertainty of the Delta variant of the coronavirus also remains: the 7-day average of new daily cases rose 5% in the United States to 155,277, with 1,290 daily deaths on average, up 29% compared to a week earlier. In the United States, approximately 52.3% of the population is fully vaccinated. For Powell, the labor market has “improved more than expected”, but unemployment is still “too high”. If the number of jobs created is at least in line with forecasts, many will be pushing for a start of tapering as early as October; otherwise, as Powell has suggested, we will still have to wait.
Apple and the video game sector protagonists on Wall Street
Apple earns again and rises to over $ 152 per share, for a capitalization of over $ 2.5 trillion, after Ming-Chi Kuo, an expert analyst of the Cupertino company, said that with the next iPhone it will probably also be possible to phone via satellite . For this, the title of Globalstar, a satellite service provider who, according to the analyst, is expected to work in partnership with Apple, earns over 45%. NetEase, Chinese video game giant, is in sharp decline after the Chinese authorities have published new rules for children and young people under the age of 18, limiting the time they can devote to online video games to three hours a week to safeguard their physical and mental health . The news is also striking Tencent, another Chinese company in the sector, which is clearly in decline on Wall Street.
In Europe, business and household confidence is falling
Eurozone business and household confidence declined slightly in August, after the all-time high in July. The European Commission said the economic confidence indicator, which is an aggregate measure of business and consumer confidence, fell to 117.5 in August from 119 points in July. The result is below a consensus forecast by economists who expected the index to stand at 118 points. Despite the decline, the indicator remains at a high level, the European Commission said. The economic sentiment indicator was the result of a decline in confidence in services, industry and consumers in August, while confidence returned to growth in construction and increased slightly in retail, the report said. In particular, consumer confidence fell to -5.3 from -4.4 in July. The decline was sharp in France and the Netherlands, and to a lesser extent in Italy, Poland and Spain. In Germany, sentiment remained virtually unchanged. Conversely, the indicator of employment expectations increased further, reaching its highest level since November 2018. More optimistic employment plans in construction, retail and services led the increase. Employment plans in industry remained broadly unchanged at a very high level, only slightly below their all-time high in December 2017, the report said.