Piazza Affari closes shortly after US jobs report

Colorless closing for the European stock markets on the day of the American labor market data. In Piazza Affari, the Ftse Mib ended little changed (+0.1%) at 30,717 points, with Stellantis (+2.3%), Telecom Italia (+2.2%) and Mps (+2.1%) slightly while profit-taking begins at Ferrari (-1.7%). The oil companies Saipem (-1.7%) and Eni (-1.4%) lost ground.

The number of non-farm payrolls in the US rose significantly more than expected (353,000), the unemployment rate remained stable at 3.7% and annual growth in average hourly wages accelerated to 4.5%.

Numbers that strengthen the prospect of a still hawkish Fed and further reduce hopes of a rate cut as early as March, the probability of which has fallen to a modest 20%.

Several representatives of the US central bank, including President Powell, and the ECB will speak in the next few days. On the macro agenda, ISM services in the US and Chinese inflation data ahead of the New Year holidays. Also focus on the European quarterly reports with the accounts of the main Italian banks in Piazza Affari.

Bond yields rose sharply, with the move extending from the U.S. to Europe, according to U.S. jobs data. The BTP Bund spread is at 157 basis points, with the Italian 10-year bond yield rising to 3.8% and the Bund yield rising to 2.23%, while the US 10-year Treasury bond has exceeded 4%.

Among commodities, Brent oil prices fell further to $77 a barrel, set for its worst week since October, while ceasefire negotiations between Israel and Hamas reduce the prospect of geopolitical risk to Middle East supplies.

In the foreign exchange market, the euro/dollar exchange rate fell below 1.08 and the dollar/yen fell above 148, with the greenback gaining in value following the release of the jobs report.