The Fed leaves the rise in interest rates, the stock exchanges are celebrating – The Republic

MILAN – The temuro rise in US interest rates in the summer there will be. At least according to analysts who have interpreted this way the concerns expressed by the Federal Reserve for the freezing of the labor market, as well as the Brexit – the eventual exit of Britain from the European Union – which is likely to have “significant impact” . In the background, then, there are fears about the challenges of China in rebalancing its economy: a maneuver that could pass for new interventions on the Asian currency. The President Janet Yellen therefore remains cautious reiterating that a gradual rise in interest rates is appropriate, but does not provide guidance on the timing of the close. It also waives the expression “in the coming months” in recent weeks had fueled fears of a summer hike.

Wall Street listens and is initially silent to the words of the governor. Then accelerates, with the S & amp; P 500 closing at the highest of the last seven months, convinced that the caution of Yellen away close as possible. According to the fed funds futures, the chances of an increase in June is 2%, those for a close in July plunged to 22%, according to analysts, therefore, you will not have an increase on December 1.

They toast also the European stock exchanges: Milan Stock Exchange opens in rise of 0.5%, consolidating the rebound the day before, in line with the rest of the Old continent lists. In Frankfurt, the Dax marks a + 0.7%, followed by Paris, where the CAC40 0.4% salt and from London, with the FTSE 100 advancing 0.3%. In Milan still under observation banks while continuing the capital increase of Banco Popolare and Unicredit is still looking for new CEO after the release of Federico Ghizzoni scene. stable opening for the spread between BTPs and Bund. The differential marks 138 points on the same level of the closure on Monday. The yield is 1.46%. The euro was stable against the greenback, the single European currency is indicated in rispettto $ 1.1359 to $ 1.1355 of yesterday’s close.

From the macroeconomic point of view, the industrial production of Germany returned to growth in April, after two months of decline. According to seasonally adjusted data published by the Federal Statistical Office Destatis, industrial production grew 0.8% compared to March and by 1.2% on year. The data are better than expected by analysts. In March, industrial production recorded a 1.1% decline, Destatis revised figure from the previous 1.3 percent. Waiting for the data on Eurozone GDP (the agenda of the markets).

In the morning, the Tokyo Stock Exchange closed positively in the wake of Wall Street and optimism generated by the words of the Governor Fed Janet Yellen: the Nikkei index scored a rise of 0.58%, gaining 95 points to 16,675.45 share. The yen stops being reassessed at the exchange with the dollar, reaching to below 107, the highest since mid-May reached last week. Last night, as I said, on Wall Street the Dow Jones gained 0.63% and the Nasdaq 0.53%.

In terms of raw materials, the price of oil remains on the last maximum 10 months around the threshold of 50 dollars. WTI crude oil on the markets of Texas share $ 49.6 per barrel while Brent gives some positions to $ 50.47. The caution of the US Fed rate hike pushing the price of gold, which is trading at $ 1,243 an ounce after reaching $ 1,245. YTD the metal prices rose by 17%.