Piazza Affari at its worst after the ECB's cuts decision

The ECB left reference interest rates unchanged (the main rate was 4.50%) and warned that they will remain restrictive for as long as necessary. There are many unknowns and a rebound in inflation cannot be ruled out.

The markets react with caution. While London, Paris and Frankfurt recorded weak increases, Lagarde said Piazza Affari remained the weakest, losing half a percentage point.

Investors are unsure about the timing of the first rate cut, forcing stock markets to take a cautious stance.

Wall Street has now opened well, with the Dow Jones and Nasdaq up half a percentage point after the US GDP figure for the fourth quarter of 2023 grew above expectations at 3.3%, but compared to +4.9 % slowed the third quarter.

It now seems clear that the macro data confirms a so-called “soft landing” for the USA. The Fed's monetary policy has so far managed to cool inflation without triggering a severe economic recession.

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