The season of inflation has arrived, but how will the European stock markets react? [P1] The anticipation for the release of the September inflation data in the United States advises investors to be prudent, continuing to monitor the quarterly seasonality and geopolitical developments. The European stock markets are therefore cautious, while the return of tech purchases is partially balanced by concerns related to rising energy prices. The FTSE MIB of Milan's Stock Exchange remains at parity, seeking to defend its 50,000 points.

On the macro front, the US inflation data will be crucial to understand the Fed's monetary policy space. In terms of the market, it is believed that the status quo will continue until the end of the month (the scenario considered probable at 78% based on CME FedWatch), while a 25 basis point increase in December is quoted at 71%. [P2] Returning to the Milan-based bank, among the main stocks, the acquisitions reward Prysmian and Stmicroelectronics, while they are weak banks, after the mixed quarters in the US giants and below the proxy advisor Iss, Banca Monte Paschi Siena on Banco Bpm and Banca Generali. Instead, Avio, rewarded by the market after the Lockheed Martin agreement, is also favored.

On government bonds, the spread between BTp and Bund is in slight growth. The yield difference between Italian ten-year bond and par maturity German bond is at 107 points base, one point lower than the previous day's 106 points. In addition, the yield of BTp decennial bond has increased slightly to 4.53% from 4.52% previously. [P3] On the currency market, the euro remains below 1.12 dollars, indicated at 1.1189 from 1.1193 on Tuesday's close.

The single currency also stands at 177.31 yen (from 177.28), with the dollar/yen ratio remaining at 158.48, compared to 158.38 from the previous session. On energy, the price of oil is advancing: the November Wti future rises by 1.24% to $95.31 per barrel, while Brent for December is quoted +0.61% at $106.33 per dollar. Gas stands at 85 euros per megawatt, down 2.5% from the previous day. [P4] Closing in slight decline, meanwhile, for Tokyo Stock Exchange, investors have shifted their attention from US inflation to search for clues on the Federal Reserve's interest rate path.

The Nikkei index lost 0.5% and closed the session at 67,744.29 points. New York Federal Reserve President John Williams stated on Tuesday that it may be opportune for the Fed to increase interest rates again this year, adding that the aspect he is paying more attention to is artificial intelligence-driven inflation. News and in-depth analyses of political events, etc.

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