Stock market: bonds still under pressure; Milan down 1.6 per cent on ‘Four Witches’ Day’
Gas prices soar to 79.8 euros (+4.5 per cent), Brent to 104 dollars
(Il Sole 24 Ore Radiocor) - After two days of gains, European stock markets closed in the red on the final trading day of the week, weighed down by a further rise in bond yields. Milan’s FTSE MIB thus ended the day down 1.6 per cent on ‘Quadruple Witching Day’, when futures and options on indices and individual shares all expire simultaneously. Meanwhile, oil prices remain high: after a weaker start, WTI rebounded and is trading at $102.1 per barrel (+0.2%), whilst Brent stands at $104.4 (-0.3%). Gas prices surged in Amsterdam, rising by 4.5 per cent to €79.8 per megawatt-hour, driven more by concerns over supply ahead of winter than by a sudden increase in demand. Investors are waiting to see how the situation in the Middle East will unfold, ahead of the summit between US President Donald Trump and the Gulf states, scheduled for next week on the sidelines of the UN General Assembly. Meanwhile, the markets remain concerned about rising inflationary pressure, and bond yields are climbing again on both sides of the Atlantic. Ten-year US Treasuries are once again yielding 5 per cent, the 10-year gilt is yielding 5.31 per cent, the 10-year BTP at 4.44 per cent, the 10-year Bund at 3.52 per cent and the OAT of the same maturity at 4.57 per cent.
On the stock market, selling pressure on the Milan Stock Exchange has spared no sector except for tech. ST, in fact, finished top of the index, up 2.3 per cent, thanks to reassurances from Nvidia’s CEO, Jensen Huang, who forecasts that chip sales will double next year thanks to developments in artificial intelligence. Prysmian also performed well (+0.66%), buoyed by an upgrade in its rating and target price by Intermonte analysts. Bucking the trend in the luxury sector, Brunello Cucinelli rose by 0.59%, with the market betting on robust growth and the founder reiterating yesterday – on the sidelines of a conference organised by Borsa Italiana – his forecast of 10–11 per cent growth in 2026. Selling pressure was seen on Hera (-3 per cent) and UniCredit (-3 per cent). Bringing up the rear was Stellantis (-5.2%), which, according to rumours, is reportedly considering selling its controlling stake in the French used-car platform Aramis Group.
In the currency markets, the lack of unanimity regarding the Bank of Japan’s expected rate rise to 1.25 per cent (the highest level in 31 years) has pushed the yen to a two-week low. Consequently, the euro/yen exchange rate stands at 179.99 and the dollar/yen at 156.93, whilst the single currency is also trading at 1.1468 dollars.
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