Stock market: Europe up; in Milan (+0.8%), Eni slips as crude oil prices fall sharply
Industrial stocks in the spotlight as energy costs fall
European stock markets are up, though below their opening levels, with investors welcoming the agreement reached overnight between the United States and Iran whilst remaining cautious, given that yesterday’s signing represents only a first step towards a possible peace deal. The formal signing is scheduled for next Friday in Geneva, though this will mark the start of a 60-day period of intense negotiations before any final agreement can be reached. In short, the road ahead could still prove difficult, particularly given that the preliminary agreement was in danger of collapsing due to Israeli air strikes in Lebanon.
At the halfway point of the session, Paris is up 1.15%, Frankfurt 1.28%, Amsterdam 0.11% and Madrid 2.37%. Milan slowed to 0.8%, whilst the spread widened to 71 basis points. US futures were also up, particularly the Nasdaq, ahead of SpaceX’s second day of trading.
Oil prices are falling sharply: WTI is down 5.17% at $80.50 a barrel, whilst Brent is down 4.87% at $83.
On the Milan Stock Exchange, the slump in oil prices is weighing on Eni, which is down by more than 4%. Industrial shares are bucking the trend, as they are among the main beneficiaries of the fall in energy costs: Buzzi (+3.5%) and Stellantis (+5.4%) are surging.
