European stocks fall for the second day in a row after bad macro data

The main European stock markets fell sharply this Wednesday after bad inflation data in the United Kingdom and business confidence in Germany while political negotiations on the US debt ceiling continue and fears of more rate hikes are revived of interest.

Milan has lost 2.39%, Frankfurt, 1.92%; London, 1.75%; Paris, 1.7%; Madrid, 1.12%; and the Euro Stoxx 50 index, which represents the largest listed companies, 1.81%.

Despite the fact that the experts see it as unlikely that the US will enter into a debt default – “we remain optimistic about the possibility of reaching an agreement on time”, says the manager Pimco today in a report -, the vicissitudes of the negotiation generate uncertainty and suppose a brake for the bags, according to the analysis of Link Securities.

In Europe, the two most relevant indicators of the day were negative: German business confidence from the Ifo institute, which fell in May after six consecutive increases, and April inflation in the United Kingdom, which fell to a much lesser extent than expected. expected by analysts and, furthermore, the underlying rate has risen a lot.

This result “leaves little room” for the Bank of England to interrupt its restrictive monetary policy, Banca March indicates in a report, while for OANDA it is “a serious setback” if one takes into account that the underlying is what the institution is fighting against .

With the European stock markets already closed, the minutes of the May meeting of the Federal Reserve are being released, where there may be some clue about the next movements of the US central bank at a time when investors are less optimistic about the end of the price increases. guys than a few weeks ago.

The euro falls again (0.1% at the close of the stock market) and is trading at US$1,076, the level it was a month ago, and gold continues its decline due to the strength of the dollar and is trading at US$1,969 an ounce, on 0. 3% less.

Brent oil, the benchmark in Europe, rises 1.7%, to US$ 78 a barrel, after some analysts saw yesterday a veiled threat from Saudi Arabia to cut production in statements about its Energy Minister on the speculators operating in the market.

In the debt market, the yield on the ten-year German bond, considered the safest, has risen three basis points, to 2.467%.