Stock exchanges, Europe bets on de-escalation in Iran. Milan +2.7% rebounds with banks and tech
Wall Street closes around parity. Crude oil falls below 90 dollars per barrel, gas below 50 euros per MWh
by Martina Soligo and Laura Bonadies
(Il Sole 24 Ore Radiocor) - European stock markets closed on a solid rise as they bet on aloosening of tension in the Middle East soon and were galvanised by the slump in oil prices. Brent crude fell from $120 a barrel on eve to $87, down more than 11 percentage points. Triggering the sales on crude oil were the words of US President Donald Trump, who said that the war with Iran will end 'very soon'. But the tenant of the White House then intervened on energy supply with a post on Truth: 'Should Iran take any action that blocks the flow of oil in the Strait of Hormuz, it will be hit with twenty times more force than it has been used so far,' he wrote. Thus Milan ended trading up 2.67%, regaining the 45 thousand point mark. Also tonic were Paris (+1.79%) and Frankfurt (+2.25%).
Wall Street, closing around parity
Volatile session and closing around parity on Wall Street, with investors continuing to follow developments in the war with Iran. About an hour before the close, the White House stated that the US Navy had not escorted an oil tanker through the Strait of Hormuz, contrary to what Energy Secretary Chris Wright had written on X. The post on X had pushed Wti oil, already in steep decline, below $80 per barrel; Wti then closed at $83.45, down almost 12%. The Dow Jones lost 34.29 points (-0.07%), the S&P 500 fell 14.51 points (-0.21%), the Nasdaq closed up 1.15 points (+0.01%). Gold gained $138.20, or 2.71%, to $5,229.70 an ounce. Euro stable at $1.163. Bitcoin up 1.74% to $70,208.
Traders are closely following the latest developments in Iran. After President Trump's words, the Secretary of Defence, Pete Hegseth, said that the US will go forward until the 'complete defeat of the enemy. Iran is now isolated' and 'we are winning. But this is not 2003, this will not be an endless war,' he added, referring to the invasion of Iraq. Meanwhile, according to Saudi oil giant Aramco, the war with Iran will have 'catastrophic consequences for the world oil market'. On a stock level, Kohl's stock is up despite disappointing fourth quarter sales for the retail chain of $4.97 billion, below estimates of $5.03 billion. On the other hand, fourth quarter earnings of $1.07 per share exceeded the 85 cents expected. Opposite performance for Taiwan Semiconductor, even though the chip maker reported a 30% increase in sales in the first two months of the year.
Banks and tech run in Milan
In Piazza Affari, purchases were concentrated on banks with Unicredit leading the rises (+5.65%). Under the spotlight Mps (+4.95&) and Mediobanca (+5.04%) grappling with the integration project, which is coming to the board of directors' meeting with the knot of exchange rates in the foreground. Tech stocks were in the limelight as the sector rose: St was up 5.6% with Deutsche Bank raising its target price to EUR 32, believing that growth in AI-related data centres could become one of the main drivers of development for the Italo-French company. Asset management stocks were well bought, with Azimut (+4.8%) and Banca Mediolanum (+3.3%) posting the biggest gains. Slipping to the bottom of the list were Lottomatica (-1.14%) and Inwit (-1.79%).
Oil plummets below $90, gold and silver rise
After peaking at over $119 on the eve of the event, the Brent futures contract fell below $90 per barrel. A similar trend was seen for Wti futures, in the $84 area. Sales were triggered on the one hand by President Trump's words, and on the other by the possible release of the G7's strategic reserves and the positions of European countries led by France willing to send ships to protect traffic in the Strait of Hormuz. The European gas traded in Amsterdam also fell sharply, well below EUR 50 per MWh.
