Stock markets are optimistic about a breakthrough in the Strait of Hormuz; in Milan (+0.4%), BPM hits a record high following its results
The FTSE MIB closed at a new high. All eyes are on the Middle East and the draft agreement between Iran and Oman. Oil prices are rising, with Brent crude back above $80 a barrel
(Il Sole 24 Ore Radiocor) - European stock markets appear to be banking on a breakthrough regarding the reopening of the Strait of Hormuz, following the announcement of an agreement between Iran and Oman to ensure a safe shipping route. Despite the volatility linked to the earnings season, which is now drawing to a close, the indices ended the trading session on a positive note. Milan managed to set a new closing record of 53,682 points (+0.44%), having also broken a new intraday all-time high of 54,024 points. A certain degree of optimism therefore prevails on the markets, even though President Trump has not yet commented on the agreement reached between Oman and Iran, so caution remains the prevailing sentiment amongst investors, with the risk of a sudden cold shower.
It was also a positive session for the CAC in Paris (+0.35 per cent), the DAX in Frankfurt (+0.15 per cent), the AEX in Amsterdam (+0.1 per cent) and the IBEX in Madrid (+0.6 per cent). Only London’s FTSE 100 lagged behind (-0.1%).
Wall Street indices fall
Indices on Wall Street are falling, whilst traders – awaiting an agreement to reopen the strategic Strait of Hormuz – are assessing a series of quarterly results from companies. Sandisk shares have plummeted after the memory manufacturer published its fourth-quarter financial results, which failed to impress investors. SpaceX has rebounded following the previous day’s falls. On the macroeconomic front, claims for unemployment benefits came in below expectations.
Quarterly results set the tone: BPM surges
On the stock market, quarterly results are once again setting the pace on the Milan Stock Exchange. Banco Bpm (+3.93%) is celebrating results that exceeded expectations, along with the revision of its 2026 profit targets and dividend estimates. With the prospect of a merger with MPS (+0.05%) now off the table, CEO Castagna has also opened the door to a merger with the Italian division of Crédit Agricole. Still on the banking front, BPER Banca saw its share price fluctuate following record half-year profits of 1.33 billion and the revision of its targets: the bank ended the session down 0.76%.
A sudden reversal of fortune for the tech sector, with investors setting aside – at least for the time being – their doubts about the resilience of the AI sector. As a result, St closed up 1.28% and Prysmian up 1.97%. There was also buying in defence stocks, with Avio (+5.67%) leading the market and Leonardo up 2%. Tenaris (-7.08%) went the other way, following a fall in profits in the second quarter. Outside the main index, Safilo closed up 16.86% on the back of its financial results. Trevi rose by +1.84%, pushing the share price above the value of the takeover bid launched by Webuild, which offers a cash consideration of €4.50 per share – well above Icop’s offer, which values the share at €4.163.
