Stock markets: bonds benefit as tech stocks face a rough week. Milan up 0.2 per cent. On Wall Street, Brent crude above $110; Nasdaq down 2.1 per cent
Fears over AI and inflation are shaking the markets, but are helping to halt the long run-up in yields. On the Milan Stock Exchange, Technoprobe plummets by 22 per cent, whilst ST and Prysmian fall by 11 per cent
(Il Sole 24 Ore Radiocor)- The search for a safe haven in government bonds is accompanying heavy selling in tech stocks, whilst the reduced likelihood of a Fed rate hike in October is boosting European stock markets, which have recorded a positive week, albeit a volatile one. Fears over AI and inflation are unsettling the markets on the one hand, but have also helped to halt the long run-up in yields: US Treasuries have had their best week since February, with the 10-year yield falling to 5.1% after surpassing its 2002 highs of over 5.3%.
The focus across the five trading sessions was on US inflation and the resulting outlook for interest rates, which triggered a sell-off in AI-related shares, amplified by concerns over the debt of some of the sector’s giants, such as Coreweave. The picture was further complicated by the start of the quarterly results season, which has so far yielded mixed results, both for US banks and for the luxury sector, where Cucinelli’s growth was offset by signs of weakness from LVMH in China.
Thus, Milan posted a gain of 0.2%. Other stock markets fared better: Paris +2%, Frankfurt +2.1%, Amsterdam +1.1%, Madrid +1.5% and London +3.1%. And amongst the sectors in Europe , the tech sector fell by 3.4%, whilst buying activity favoured food and drink (+7.6%).
In Milan, Technoprobe was the worst performer of the week, down 22.4%
On the Milan Stock Exchange, the slump in the semiconductor sector is taking its toll: from Technoprobe (-22.4%) to St (-11.6%) and Prysmian (-11.2%). Offsetting the sell-off Campari (+8.7 per cent) and Cucinelli (+8.3 per cent), with the latter benefiting from a further upward revision of its 2026 forecasts. Leonardo (+7.7%) and Avio (+6.1%) are also on the rise, amid fresh momentum for the defence and European satellite sectors. Meanwhile, the ‘Risiko’ scenario remains in the spotlight, with MPS’s (+1.7%) defensive strategy against Intesa’s (+0.5%) OPAS appearing to have lost momentum, ahead of the major board meeting at the end of the month. Meanwhile, BPM fell by 6.3% this week. The sector has also received confirmation that the Budget Bill provides for a contribution of 5 billion euros.
Oil prices rise, relief over bond yields
Tensions in the Middle East remain in the background, both between the US and Iran and between the Houthis and Saudi Arabia. Oil prices surged in New York, where Brent, the international benchmark, rose above $110 for the first time since 20 May, thanks to a rise of more than 3.8 per cent. WTI, the US benchmark, rose by 3.68 per cent to 101.58. TTF gas prices also surged, up 8.9 per cent to 88.6 euros per MWh in Amsterdam. On the currency markets, the euro stood at $1.123 (up from $1.1203).
