European stocks fell after German GDP data and while the possibility of a rate cut by central banks faded. Government bond yields rose after Bundesbank President and ECB member Joachim Nagel said on the sidelines of the World Economic Forum in Davos that it was too early to "talk about cutting rates". Geopolitical tensions, particularly in the Middle East and the Red Sea, are in the spotlight.
The Stoxx 600 index gave up 0.6%, with Wall Street closed for Martin Luther King Day. Paris (-0.8%), London (-0.6%), Frankfurt (-0.5%), Milan and Madrid (-0.4%) were in the red. Prices are weighed down by energy (-0.7%), with the price of oil falling after the flare-up of recent days. WTI fell to $71.8 per barrel (-1.2%) and Brent to $77.5 (-1%). Among the equity sectors, pharmaceuticals (-0.6%) and luxury (-0.5%) also fell. Sales on utilities, with gas falling below 30 euros per megawatt hour. In Amsterdam, prices give up 7.1% to 29.7 euros per megawatt hour. Negative session for banks (-0.8%) while insurance (+0.1%) are in positive territory. The technology sector was weak (-0.2%).
In Piazza Affari, Mediolanum (+2.2%) and Iveco (+1.1%) put on display. Purchases for Banca Generali and Azimut (+0.6%) and Fineco (+0.4%). At the bottom of the list are A2a (-2.9%), Saipem (-2.5%), Mps (-2.3%), Pirelli and Campari (-1.8%). Among the smaller-capitalization stocks, Piaggio jumped (+3.3%), with Mediobanca analysts raising the recommendation from neutral to outperform and the target price to 3.7 euros. The spread between BTPs and Bunds continues at 156 points, with the yield on the 3-year Italian bond at 8.<> percent.
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