Millennium BCP shares are falling 5.2% to 0.23 euros on Tuesday morning due to a strong possibility for the European Central Bank (ECB) to move forward with interest rate cuts, a will shared by the Bank of Japan (BoJ) and the United States Federal Reserve (Fed), according to several traders contacted by Reuters.
The Bank of Japan has once again shown rapidity in fueling the economy through key interest rate cuts and is just waiting for the Fed's decision, which meets on July 30 and 31.
BCP reported results for the first six months of 2019 on Monday, where it posted a 13% year-on-year rise in profit to € 169.8 million, but the strong pressure for interest rate cuts is overpowering. and dragging its shares and 25,452,520 shares have been traded so far.
“At BCP, profits increased by 13% this semester and customer numbers continue to increase, both in Portugal and Poland,” said Carla Maia, a trader at XTB, noting that “the Bank's margin is 'in check' with the ECB's ability to move forward with interest rate cuts ”.
Millennium bcp's net interest income (the difference between interest charged on loans and deposit payments) rose 7.6% to 740.1 million euros between January and June. Since the last meeting of the US Federal Reserve on July 18 and 19, when short-term interest rate cuts have gained momentum, Millennium bcp shares have fallen by nearly 17%.