Stock market, Europe closes negative and waits for US inflation, Juve sprints in Milan (-0.3%).

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(Il Sole 24 Ore Radiocor) – A new halt to the long positive streak of European stock markets on the prospect of central bank interest rate cuts as early as 2024. European stock markets actually end in the red. Milan Ftse Mib to -0.29%, thanks to a halt in the Wall Street rally, which, after nine consecutive sessions of strong performance, closed its worst session since October yesterday. Even that wasn’t enough to lift the markets revival of US indices on the back of macro data that highlighted GDP rising in the third quarter of 2023, albeit slightly below estimates, and PCE inflation data that rose 2.6%, below forecasts of 2.8%. The focus is now on the data onNovember PCE inflation, arrives tomorrow and is expected to decline, which could give the Fed more arguments for a quick rate cut. Many on Wall Street are eyeing such a move as early as March.

Cac from Paris (-0.16), Dax from Frankfurt (-0.27), Ibex from Madrid (-0.03) and Aex from Amsterdam (-0.48) thus closed below parity. Among the worst sectors at the continental level are car (with the Stoxx 600 sector sub-index marking -0.79%), followed by commodities (-0.67%) and media (-0.6%); travel and energy were also weak (both -0.5%).

Wall Street Rebound

Wall Street is moving higher after the Dow Jones and Nasdaq Composite suffered yesterday worst day since October, the S&P 500 since September. However, the three major indexes are heading for a positive month, with the S&P 500 up 2.9% so far since the start of December, up 22% year-to-date. The Dow adds 3.2% for the month and 11.9% for the year, the Nasdaq 3.9% and 41%.

The rebound was partly due to a data series released before the open that showed ifalling inflation (+2.6%, against expectations of 2.8%) and growth by GDP still significant (+4.9%), but slightly lower than the previous estimate (+5.2%), which the market perceives favorably due to the reduction in interest rates. The number of workers who requested i. for the first time was stable unemployment compensation (+2,000 to 205,000). Finally, conditions in the Philadelphia area manufacturing sector remained contractionary in December, falling from -5.9 to -10.5 points versus expectations of -4 points.

In the stock market, among the worst performers were Warner Bros. Discovery and Paramount, following rumors in the press of an open dialogue between the two media giants about a possible merger. Shares of Micron Technology rallied the S&P 500 after revenue and earnings beat estimates and solid guidance above consensus. Used car dealers also benefit from the quarterly result above expectations; it also announced a share buyback program. Boeing shares, along with Salesforce (+2.5%), are among the top performers in the Dow after news that China has given the green light to new 737 Max deliveries to the country; in addition, in a few days, Boeing will deliver the Dreamliner to the Chinese airline Juneyao Airlines. Orders and deliveries of the aircraft to China have been effectively suspended since two fatal accidents in 2018-2019 that led to the grounding of the 737 Max. However, the tech company is on the upswing thanks to a rating upgrade by Morgan Stanley.

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