It lasted a few minutes. In stock market jargon, the peak was tested, but Piazza Affari, for a moment, made smiles of shareholders who had been beaten down by years of sudden collapses, bank failures and global crises. For a moment the main index, the Ftse Mib, reached 34 thousand points yesterday. For the record, it was the level reached in 2008, an unhappy year for markets, marked by the collapse of investment bank Lehman Brothers. It was just a certain moment, because the same parameter immediately reversed and closed essentially at a similar value to the beginning at 33,940 points. Of course, we are still far from the 42 thousand points reached in 2007, but the signal is strong and clear. The economies of the Northern countries are not shining, but those of the South, including Italy, are now tempted by large international funds that are accumulating Made in Italy venture capital.
In a week, which could also mean the beginning of the end of monetary tightening, waiting for the US Fed to take the first step back (for the ECB it is not yet time), markets see opportunities in Italian shares. And they buy them by raising prices. Not only. BTP auctions are also sold out and the spread, which measures the yield difference between Rome government bonds and German bonds, continues to narrow. An overbought signal also in the secondary market, which means that Italy, for now, is a safe haven for investors. Quota 34 thousand is “a historic and significant undertaking that marks the health of the Italian economy and highlights once again the attractiveness of our country and our reference index”, highlighted the Minister of Business and Made in Italy, Adolfo Bear.
The Milanese stock market is driven, as has been the case for some time, by banking shares, helped by the increase in interest rates that the European Central Bank intends to keep high for a while longer. Yesterday Banco Bpm (+1.83%), Bper (+1.99%) and Popolare di Sondrio (+1.94%) performed well in their debut in the main basket. And if we look closely, this seems to be the only critical issue: the excessive weight of financial securities alone in the race to break the record. But those who know the market well are now confident in a reduction in rates, not only to return more liquidity to the exchanges, but also to relaunch the industrial economy, the one linked above all to medium-sized companies listed on smaller exchanges. exchanges in Milan. If so (and this is expected to happen in the second half of 2024) the 34 thousand points will just be a starting point.
Source: IL Tempo

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.