Stock markets are weak, whilst oil prices are rising again. Wall Street is down amid disappointment over Walmart
In Milan, all eyes are on the banking sector: the MPS board of directors is examining extraordinary measures to fend off Intesa Sanpaolo’s public takeover bid. The dollar hits a three-month low; profit-taking in gold. Bitcoin returns to its highest level since May. Treasury yields on the rise
Key points
Le ultime da Radiocor
*** Avio: Advent valutera' acquisto altre azioni oltre al 7% iniziale
Usa: richieste sussidi disoccupazione a 206.000 unita', attese a 210.000 (RCO)
*** Walmart: alza guidance dopo II trim sopra attese con +6% ricavi ma utile in calo
(Il Sole 24 Ore Radiocor) – European stock markets remain cautious following the surprise intervention by the US Treasury on the eve of the announcement, which eased pressure on government bonds globally. The department, led by Scott Bessent, announced that it would at least double the scale of its buy-back operations designed to support the liquidity of longer-dated nominal bonds, stepping in after the yield on the 30-year bond had reached its highest level in nearly 20 years in recent days. Market indices therefore continue to trade cautiously, whilst the price of oil is rising for the fifth consecutive session after US President, Donald Trump, announced an ‘economic D-Day’ for Iran, aiming to isolate Tehran ‘to an unprecedented degree’. The Fed’s moves are also under scrutiny, after Wednesday’s publication of the minutes from the central bank’s latest meeting confirmed concerns regarding rising prices: according to CME FedWatch estimates, the market currently sees a 69 per cent probability of interest rates remaining unchanged in September, whilst the chances of a 25-basis-point rise are estimated at 31 per cent.
The FTSE MIB on the Milan Stock Exchange is limiting the fall thanks to oil stocks, but all continental indices are trading below par.
Wall Street down as Treasury yields rise
The main Wall Street indices are trading lower, grappling with renewed selling pressure in the bond market. Treasury yields are rising again, with the 30-year bond recouping much of the ground lost following the intervention by the Treasury Secretary, Scott Bessent. For some market participants, the rise in yields, combined with the fall in share prices, signals that the market is not convinced that the Treasury’s commitment to increasing purchases of long-term bonds is sufficient to tackle the issue of public debt and the growing supply of bonds. Bessent’s intervention had temporarily cooled yields, which had been driven upwards by growing fiscal deficits and the massive reliance on debt by technology firms. Rising fuel and gas prices are also weighing on borrowing costs. With no signs of a reduction in US debt – which has risen above 40,000 billion dollars – a sustained fall in borrowing costs seems unlikely.
On the stock market, Walmart fell by around 8 per cent following its quarterly results. The retail giant has raised its outlook for 2026, but fell short of analysts’ sales expectations, hampered by rising petrol prices which have curbed consumer spending. Bucking the trend, cryptocurrency-related shares are rising, following US President Donald Trump’s call to Congress to pass legislation on the sector.
Banking risks in the spotlight on the day of the MPS board meeting
Among the leading Milanese stocks, the spotlight remains on the banking sector on the day that the board of directors of Banca Monte Paschi Siena is due to examine the extraordinary measures available to counter the takeover bid by Intesa Sanpaolo . On the agenda is CEO Luigi Lovaglio’s plan to counter the takeover bid by Intesa Sanpaolo and the Unipol Group. Under consideration is a package of transactions, notably the voluntary public offers (OPs) for Banco Bpm and Banca Generali , as reported yesterday by Il Sole 24 Ore, and the special dividend for MPS shareholders.
