Stock markets: Europe continues its recovery. Milan regains 50,000 points
The price of oil is falling but remains volatile. Traders are awaiting this week’s inflation and retail sales figures from the United States
Le ultime da Radiocor
Borsa: Europa prosegue il recupero, Milano (+0,7%) torna a 50mila pt con le banche
Borsa: Europa verso avvio in cauto rialzo, a Milano focus su Mps con cda straordinario
Ucraina: Usa minacciano stop armi a Kiev dopo attacchi a raffinerie russe (FT)
(Il Sole 24 Ore Radiocor) - The recovery continues for European stock markets continue to recover following last week’s turbulence, with Milan (FTSE MIB) regaining the 50,000-point mark it had lost during the previous week. This week, the markets will focus on US inflation figures for September (Wednesday), looking for clues as to the Fed’s next moves, with forecasts pointing to a 3.6 per cent rise in prices (up from 3.4 per cent) due to energy costs. Meanwhile, this morning the price of oil is falling but remains volatile: after surpassing $105 overnight, Brent is trading at around $104 a barrel (-0.6%), whilst WTI is above $90 (-1.2%). Traders are assessing the resilience of oil flows from the Middle East despite rising tensions following Sunday’s attack on Riyadh airport, whilst Trump has announced imports of Russian diesel. The markets are also assessing the US President’s own statements regarding the launch of energy truce between Russia and Ukraine, which has, however, been denied by both sides.
In Milan, the focus is on the banks on the day of the MPS extraordinary board meeting
All eyes are also on the start of the quarterly results season, with the major US banks leading the way, followed by the European tech giant ASML. Banks are also under the microscope on the Milan Stock Exchange, on the day of the extraordinary board meeting of Banca Monte Paschi Siena to assess the next steps following the relaunch of Intesa Sanpaolo’s public takeover bid. Inwit is on the move following rumours of a possible delisting being considered by the controlling shareholders, Ardian and Oak, with a potential takeover bid for the remaining shares in the mobile phone tower company. Tech stocks on the Milan stock exchange are seeing profit-taking, with Technoprobe and Stmicroelectronics.
Euro remains weak at around $1.12, Bitcoin recovers
On the European front, following another week of high volatility in government bond spreads, the French budget bill is due to be debated in the National Assembly on Tuesday, against a backdrop of considerable uncertainty, as there is still no solid majority. Against this backdrop, the euro remains weak, trading at around $1.12 and just above 177 yen. The dollar/yen exchange rate is largely unchanged at around 158. Spot gold is down slightly at $4,183 an ounce, whilst Bitcoin is rising cautiously to $83,678.
BTp-Bund spread falls to 109 points, 10-year yield at 4.55%
The yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stands at 109 basis points, down from 110 basis points at Friday’s close. The yield on the benchmark 10-year BTp also fell, opening at 4.55 per cent, down from 4.58 per cent at the close the previous day.
Asia on holiday, Tokyo closed for public holidays
On the Asian stock markets, with the Tokyo Stock Exchange closed for a public holiday, South Korea’s Kospi index fell by 3.1 per cent to 6,416.17. The HANG SENG index in Hong Kong gained 0.2 per cent, rising to 24,253.70, whilst the Shanghai Composite Index fell by 0.1 per cent to 3,809.08. In Australia, the S&P/ASX 200 jumped 0.9% to 8,790.70. Taiwan’s Taiex fell by 0.2 per cent, whilst India’s Sensex rose by 0.1 per cent.
