EU stock markets rise as tensions in Iran ease and oil prices slow. Amplifon surges in Milan

(Il Sole 24 Ore Radiocor) - European stock markets are trading higher in early trading, buoyed by fresh signs of a potential peace between the United States and Iran that emerged over the weekend and the resulting slowdown in energy prices. Consequently, the FTSE MIB in Milan, the CAC 40 in Paris, the DAX 40 in Frankfurt, the IBEX 35 in Madrid, the AEX in Amsterdam and the FTSE 100 in London. Meanwhile, Asian markets are also on the rise, with Tokyo’s Nikkei closing up 0.6 per cent. Over the weekend, US President Donald Trump, according to some sources, suspended plans to step up military operations in Iran, in order to revive negotiations and attempt to reopen the Strait of Hormuz, partly due to a significant drop in stocks of certain munitions.

The White House chief also indicated that diplomacy is once again an option and that officials in Washington are in contact with their Iranian counterparts. Conversely, according to international media reports, Tehran has informed mediators from Pakistan and Qatar that it is willing to resume negotiations. These new developments have been reflected in the energy markets. Oil prices are falling sharply: Brent is once again trading close to $90 a barrel, at $91.69 (-5.3%), after having exceeded $100 last week. Meanwhile, WTI has fallen by 5.45% to $84.44 per barrel. Gas prices are also down by 8.6%, trading at €58 per megawatt-hour on the Amsterdam TTF.

Meanwhile, investors are bracing themselves for a busy week, with the Fed’s interest rate decision on Wednesday at the top of the agenda. At the same time, the spotlight remains on the outlook for tech and AI, with insights expected from the earnings reports of Microsoft, Meta and South Korea’s SK Hynix on Wednesday, and Apple, Amazon and Samsung on Thursday. According to analysts at MPS, the focus will be not only on the quarterly figures and guidance, but also on capital expenditure plans, to gauge whether and when the substantial investments planned for AI will translate into profits.

Turning to the equity market, on the Milan Stock Exchange the fall in crude oil prices is weighing on oil companies, in particular Eni and Tenaris . To support Saipem is not enough to support the share price, despite having been awarded two new contracts by Eni in Italia and the Ivory Coast worth a total of around 800 million. On the other hand, Amplifon , which had failed to set a price at the start of trading, is currently up 3.99%. There is also buying interest in Buzzi – which is benefiting from the prospects of reconstruction in the Middle East – and Brunello Cucinelli , whilst awaiting signals regarding the luxury sector due to emerge this evening from LVMH’s results (+1% in Paris). The risk game also remains under the microscope, with an article in Sunday’s Sole 24 Ore, written by editor-in-chief Fabio Tamburini, which outlines the various scenarios being considered by Banco Bpm and Banca Monte Paschi Siena for a partnership. Among other key players in the Italian banking sector, buying was seen in Intesa Sanpaolo and Generali , whilst driving Unicredit are reports from Morgan Stanley and JPMorgan. Furthermore, Jens Weidmann, chairman of Commerzbank (+1.98% in Frankfurt), has called on the management at Piazza Gae Auelenti to negotiate a possible merger. Finally, Stmicroelectronics is keeping an eye on the 500% surge in shares of Chinese chip giant Cmtx on its first day of trading in Shanghai.

Meanwhile, on the foreign exchange market, the euro is trading at 1.1409 dollars (up from 1.1388 at Friday’s close) and is worth 186.60 yen (186.40), whilst the dollar-yen exchange rate stands at 163.55 (163.71). The dollar, the ultimate safe-haven asset during the conflict in the Middle East, has weakened against almost all other G10 currencies as tensions have eased. Australian and New Zealand government bonds have gained ground, thanks to easing inflation fears. Gold has led the gains in precious metals.
Bitcoin rose by 1% to $65,416. Finally, among precious metals, spot gold rose by 1% to $4,094 an ounce.