The Fed leaves the rise in interest rates, the stock exchanges are celebrating: Milan + 2% – The Republic

MILAN – The feared rise in US interest rates in the summer there will be. At least according to analysts, who interpreted this way the concerns expressed by the Federal Reserve for the freezing of the labor market, as well as for 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.

According to the federal funds futures, the chances of an increase in June is 2%, those for a close in July collapsed to 22%: for analysts, therefore, a rise you will not before December. Toast then European stocks Square Business marks a rise of 1.99% final, driven by the banking sector with Unicredit and Banco Popolare. Milan moves in line with others of the Old Continent lists: Frankfurt halls of 1.6%, Paris 1.2% and London is more lingering at + 0.1%. Wall Street continues to trade along the lines of last night, when the markets are strengthened in their wake to comment Yellen: the Dow Jones back to overcome the psychological threshold of 18 thousand points, levels of last April, and the closing of EU markets gained 0.4%. The S & amp; 500 advances instead of 0.3% and the Nasdaq is unchanged.

Stable the spread between Bund and BTP: the differential is just above 135 basis points, on the same closing level on Monday. The yield amounted to 1.41%. Even the ‘ € is little moved against the greenback: closes above $ 1.13, while the pound, more volatile for Brexit, it strengthens slightly, after falling yesterday to the lowest level in three weeks . The European currency is changing hands at $ 1.1355 and 121.79 yen. The pound rose to 1.4567 against the dollar and 78 pence to the euro.

From the macroeconomic point of view, industrial production in Germany to grow back 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 the GDP of the Eurozone (the agenda of markets), while the Istat warned about slowing Italian recovery and confidence of businesses. In the US it is reported the data on productivity in the first quarter, down 0.6% compared to an increase in the cost of 4.5%.

In the morning, the Stock Exchange Tokyo closed positively in the wake of Wall Street and optimism generated by the words of Fed governor Janet Yellen: the Nikkei index scored a rise of 0.58%, gaining 95 points to 16,675 share 45. The yen stops being reassessed at the exchange with the dollar, reaching to below 107, the highest since mid-May reached last week.

In terms of raw materials, the price of remains the highest in the last 10 months around the threshold of 50 dollars. When they close the stock exchanges of the Old Continent WTI is appreciated by 0.5%, a step away from the threshold of $ 50, while Brent is just below $ 51 a barrel. The price of ‘ Gold is stabilized after the recent appreciations: the spot bullion is at $ 1,240 an ounce area.