Stock market: Europe cautious as it keeps an eye on the Middle East; in Milan (-0.2%), St surges
Oil prices fall as markets await developments in US-Iran talks
European stock markets are searching for direction at the start of trading, with all eyes on the situation in the Middle East and, in particular, southern Lebanon, where Israeli attacks continued yesterday, fuelling fears that negotiations between the United States and Iran to reach a final peace agreement could derail.
Tensions in the Land of the Cedars have prompted Tehran to close the Strait of Hormuz once again in recent days, prompting a reaction from US President Donald Trump, who yesterday made inflammatory remarks against Iran. However, talks between the US and Iranian delegations are continuing in Switzerland, and both the US Vice-President, JD Vance, and the Iranian Foreign Minister, Abbas Araghchi, have stated that progress has been made. Meanwhile, oil prices continue to fall: WTI is down 1.5% at $75.36 per barrel, whilst Brent is down 1.7% at $79.14. Gas prices, however, have risen by 1.2% to €42.63 per megawatt-hour.
In early trading, Frankfurt rose by 0.24 per cent, Amsterdam by 0.27 per cent, whilst Paris fell by 0.2 per cent. Milan was down 0.2 per cent, though it remained at record levels. London is under close scrutiny, hovering around the break-even point on a day when, according to British media reports, the resignation of Prime Minister Keir Starmer is expected. The yield on the 10-year UK government bond also remains broadly stable at around 4.83%.
On the Milan Stock Exchange, banking shares are showing little movement, with BPER standing out at +1%, as investors await developments regarding Intesa Sanpaolo’s (-0.3%) bid for MPS (unchanged), supported by Unipol (+1.4%), which will subsequently acquire the Siena-based bank’s brand and 635 branches, set to be integrated into BPER, of which it is the main shareholder. Meanwhile, STMicroelectronics (+2.4%) continues its rally alongside the tech sector, whilst luxury goods and utility shares are losing ground.
