Borsa goes to the top since 2008 – Corriere.it

The European Central Bank’s rate hike inflates long-term government bond yields: yesterday those at 12 months came close to 4 percent (3.94%). As highlighted by the Bank of Italy, the increase of 31 basis points compared to the auction of the Treasury bonds in May. Thus Italy collects a new record since June 2012, when the percentage of return marked 3.97%. Against an offer of 8 billion, the market asked for 10.6. The objective remains that of curbing inflation which is decelerating (6.4% in June). In the sixth month of the year, the increase in the prices of goods and services slows down in Italy, but also in the USA, Spain and Portugal.

Inflation slows down in the US

In the United States, analysts were betting on inflation at 3.1%. In the end they were wrong: inflation fell to 3% from 4% in May and recorded the lowest level since 2021. Consumer prices increased by 0.2% in June (less than the estimates of 0.3 %). The core index arrived at the same level. Compared to May, energy prices grew by 0.6%, those of foodstuffs by 0.1%. In 2022, on the other hand, foodstuffs increased by 5.7%. The decline in the energy sector is clear: -16.7%. And precisely the decrease on energy (fuel and electricity) especially benefits Madridtogether with the decline in the prices of foods such as vegetables and legumes.

In Spain inflation goes to +1.9%

In June, Spanish inflation marks +1.9% on an annual basis, 1.3 points less than in May. This was confirmed yesterday by Ine, the national institute of statistics. It means that Spain becomes the first major economy in the Eurozone where inflation falls below the 2% threshold set by the European Central Bank. A satisfaction for the president of the ECB Christine Lagarde, but above all for the socialist premier Pedro Snchez who, in order to win the political elections on 23 July, is relying heavily on economic results. In June, Madrid set a record number of employees (20.8 million). But Portugal also wins the primates: the consumer price index decreased to 3.4%, compared to 4% in May: we are talking about the lowest rate since January 2022, when prices reached +3.3% .

The effects on Piazza Affari

Although this month, the Federal Reserve will in all likelihood raise rates (again) by 25 points, the effects of the fall in US inflation are already emerging on the European stock exchanges, which yesterday closed sharply higher. Above all, Piazza Affari stands out: the Ftse Mib index reached 28,552 points, up 1.75%. And Milan hadn’t achieved a similar result since September 2008. In the evening, the Dow Jones closed at +0.25% and the Nasdaq at +1.15%.