Stock markets: Europe rises as oil prices fall and there are signs of hope regarding the Strait of Hormuz. Tech shares rebound in Milan

(Il Sole 24 Ore Radiocor) - European European stock markets are trading higher in the final session of the week, thanks in part to support from the technology sector, which is rebounding after the previous day’s falls. Sentiment is also being buoyed by speculation of a phased agreement between the United States and Iran to reopen the Strait of Hormuz, which is easing pressure on the markets and boosting share prices. This is despite conflicting reports emerging regarding the attacks in the Middle East. Saudi Arabia said it had intercepted ballistic missiles fired at the kingdom, after Iranian President Masoud Pezeshkian had stated at the UN that Tehran would never abandon its nuclear programme. However, it is the new negotiations that are driving a shift in the oil market, with prices falling from the highs reached the previous day (currently Brent down to $105, WTI at around $93). Meanwhile, the extension of the US-China trade truce until January, agreed at the Trump-Xi summit, ‘reduces the risk of an immediate escalation, but leaves companies grappling with the same uncertainty regarding the rules they will be subject to next year’, explain analysts at Chanana. So, at present, the FTSE MIB is up, as is Paris (CAC 40) and Frankfurt (DAX 40).

On the Milan Stock Exchange, tech stocks are leading the way, spearheaded by Stmicroelectronics, Prysmian and Technoprobe . Banking stocks are also performing well: according to the latest rumours, Unicredit is reportedly in talks with Credit Agricole regarding a possible split of Banco Bpm, as previously reported in recent days by Il Sole 24 Ore. A scenario that would hinder the bid for Banca Monte Paschi Siena on Piazza Meda, which forms part – alongside the OPS on Banca Generali – the response to the OPAS on Intesa Sanpaolo . Meanwhile, Monte’s Board of Directors has also included the merger with Mediobanca and the two OPS schemes. Last day for the Opas by Poste Italiane on Telecom Italia, with subscriptions to date totalling 55.45 per cent, bringing the group led by Matteo Del Fante – given the 20.1 per cent it already holds – to 75.5 per cent. Bringing up the rear Tenaris, following the fall in crude oil prices.

Oil prices have fallen, whilst investors await signs regarding the reopening of the Strait of Hormuz, which is vital for the global transport of crude oil. WTI is thus trading at around $93, whilst Brent is trading at around $105 per barrel. The US dollar has fallen to 158 Japanese yen from 158.7 yen previously. The euro is trading at $1.138, essentially unchanged from the previous day. Natural gas prices in Amsterdam are also down, falling to 73 euros per megawatt hour.

The spread between BTp and Bund bonds opened lower. The yield spread between the benchmark 10-year BTp and the German bond of the same maturity stood at 92 basis points in early trading, compared with 95 the previous day. The yield on the benchmark 10-year BTp has narrowed significantly to 4.50 per cent, after rising to 4.56 per cent yesterday.

Asian stock markets are showing mixed performance today. The Japanese Nikkei 225 index closed up 1.3 per cent. Hong Kong’s Hang Seng fell by 1.7% to 24,333.20 points. Australia’s S&P/ASX 200 lost 0.5%, settling at 8,660.30 points. India’s Sensex gained 0.2%. The markets in mainland China, Taiwan and South Korea remained closed for public holidays.