Piazza Affari increases (+0.7%), luxury level purchases

Positive session for European stock markets, with Paris in the lead, driven by the fashion sector after LVMH sales data. Luxury is also the protagonist in Piazza Affari, where the Ftse Mib ends up 0.7% at 30,379 points. Highlights include Moncler (+9.6%), Brunello Cucinelli (+6.3%) and Campari (+5.5%), also thanks to the performance of LVMH’s alcohol brands, while MPS (-3.3%) and STM are declining (-2.7%), still held back by disappointing forecasts.

Later in the day, data on U.S. core PCE, the Fed’s preferred measure of inflation, was released, marking a further decline to 2.9% in December. The central bank meets next week (January 31-December 1) and is expected to confirm its cautious stance on monetary easing as traders continue to bet on a first rate cut in May.

Also focus on quarterly results after Intel’s balance sheet fell short of expectations. Next week the focus will shift to the results of major companies Microsoft, Alphabet, Meta, Apple and Amazon.

Inflation in the Eurozone and the Bank of England meeting scheduled for Thursday as well as the American labor market data (Friday) should also be followed.

In bonds, the BTP Bund spread fell to 152 basis points, with the 10-year Italian government bond yield falling to 3.82% and the Bund yield falling to 2.3%, while the 10-year US government bond yield rose to 4.15%.

Among commodities, the price of Brent oil remains close to $82 a barrel, awaiting Thursday’s OPEC+ Monitoring Committee meeting, which is not expected to change current production policy.

In the foreign exchange market, the euro/dollar exchange rate is 1.0865 and the dollar/yen rate is 148 yen per dollar.