EU stock markets rise as oil prices fall. In Milan (+1 per cent), Avio surges and tech shares rebound
Focus on central bank decisions and the quarterly results of US tech giants. Brazilian assets are expected to fall following Lula’s victory
Le ultime da Radiocor
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Borsa: Europa in rialzo a meta' seduta, Milano +1% con exploit Avio e rimbalzo tech
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(Il Sole 24 Ore Radiocor) - Falling oil prices and government bond yields that remain below recent highs are supporting European share markets, which are seeking to regain ground following last week’s weakness and are awaiting decisions from central banks. The technology sector is rebounding, whilst investors await the publication of quarterly results from Microsoft, Alphabet and Amazon in the coming days to assess whether share price movements reflect the sector’s growth prospects. The FTSE MIB on the Milan Stock Exchange is gaining ground, posting one of the best performances across the continent.
On the macroeconomic front, monetary policy will take centre stage this week. On Wednesday, the Federal Reserve will hold its meeting, with traders – according to CME FedWatch data – more than 90 per cent of whom are betting on the status quo being maintained, followed by a 25-basis-point rate rise at the next meeting in December. On Thursday, it will be the ECB’s turn, with the consensus again pointing to interest rates being kept at current levels, whilst on Friday it will be the Bank of Japan’s turn.
Brazilian assets expected to fall following Lula’s victory
All eyes are on Brazil, where markets are expected to fall sharply following Inácio Lula’s unexpected victory in the presidential run-off and his rival Flávio Bolsonaro’s refusal to recognise the result. An ETF listed in Tokyo and linked to Brazilian shares is down 16 per cent, whilst the real is under pressure on the foreign exchange market.
Avio soars and tech stocks rebound on the Milan Stock Exchange. Banks hold up well
Turning back to the Milan stock market, buying interest is focusing on Avio , which has been upgraded by Berenberg analysts in light of the growth prospects for orders. Technoprobe and Prysmian – the latter thanks to a recommendation from Citi, which advises buying the shares. Banks are generally on the rise, after Deputy Prime Minister Antonio Tajani stated he was ‘absolutely opposed’ to the ‘taxation of windfall profits’, which he assured would not feature in the Budget Bill; instead, it will include ‘a contribution from banks, insurance companies and other organisations because, at a time like this, it is essential to have everyone’s help”. At the bottom of the list, however, Eni .
Outside the main index, it’s taking off Società Editoriale Il Fatto is set to take off in the run-up to a possible takeover bid by Leonardo Maria Del Vecchio, even though the founding shareholders, who control the majority of the share capital, have already announced their intention not to accept the offer.
