Microsoft's slump affects EU stock exchanges, Milan (-0.14%) St goes down. Brusque stop for gold

(Il Sole 24 Ore Radiocor) - The collapse of Microsoft on Wall Street also affected the European stock markets. It was a volatile finale for the indices of the Old Continent, which lost altitude in the second half of the session in the wake of the red of the US markets, Nasdaq in the lead, despite the rush of investments in artificial intelligence. Gold and BitCoin also sold off in the same hours, while the dollar continued to recover. In the background remain the tensions between the US and Iran, which once again support crude oil prices. This while the quarterly earnings season continues apace in the aftermath of the Federal Reserve's decision to keep rates at 3.5-3.75 per cent. On Wall Street, the tear in Meta Platforms - right on the heels of the AI - was thus not enough to offset the thud of Microsoft Corp which knocks out almost the entire technology sector (pending Apple's accounts at market close).

On Wall Street, the Dow Jones closed slightly up by 0.11% at 49,071.56 points. The S&P 500 lost 0.13% to 6,969.01 points while the Nasdaq lost 0.72% to 23,685.12 points. Traders are grappling with the Big Tech quarterlies and the Federal Reserve's latest interest rate decision. Shares of Meta Platforms ripped after Facebook's parent company provided better-than-expected first-quarter sales forecasts, following a quarter with above-expected earnings and revenues. Shares of Tesla also posted strong gains after the company's fourth-quarter results exceeded expectations (although Elon Musk's company posted the first annual revenue decline in its history). However, the market's overall gains are being held back by Microsoft Corp's slowing cloud growth, while weak operating margin forecasts are also a concern. Investors also turned their attention to Apple, with financial results due to be released after the close. The Fed on the eve kept the benchmark interest rate in a range between 3.5 per cent and 3.75 per cent, as expected, drawing criticism from President Donald Trump.

Milan's Stmicroelectronics closed in the red, initially rallying but then slipping to the bottom of the list. In the last three months of the year, the company posted a higher-than-expected $30 million red, but the prospects indicated by the group's top management have been met with positive feedback from analysts. Banks posted a positive session, led by Mediobanca. Crude oil-driven stocks rallied, with Eni, and Prysmian also doing well. Sales on Telecom Italia, Nexi and Lottomatica Group. In particular, purchases were focused on Saipem after Ubs' decision to raise the target price to EUR 3.4 and the resumption of the Mozambique Lng project, which is worth around EUR 3 billion to the company. Also doing well was Diasorin with the Fda's go-ahead for the HDV test, a move that analysts say will "support growth" in the group.

The gold suddenly reversed course at the close of the session. After updating new highs to within a whisker of $5,600 an ounce, it took a downward turn to $5,222.3 an ounce. The silver moved in the same direction, surging to a top of $120 an ounce in the morning but now down 6.1 percent to $109.67 an ounce. On the currency front, the dollar is rallying against the euro: from $1.1985 this morning, it is now trading at $1.1916 (yesterday's close was $1.1935). More stable is the dollar-yen exchange rate, which has been under investors' scrutiny following rumours in recent days of possible intervention by the authorities: it stands at 153.29 (this morning at 153.24 yesterday 153.6).

Investors, it is reasoned in the trading rooms, are probably taking home a bit of a realisation, considering the run-up recorded by precious metals in the last period. The value of silver since the start of the year has advanced by around 50% (reduced now to around 45%). Gold has also gained around 20% in January alone. Over the past year, the yellow metal has soared by around 90%, benefiting from fears of geopolitical risks, as well as the debasement (i.e. the loss of value of the dollar), being considered the shelter commodity par excellence