Stock markets: Nasdaq’s rebound boosts Europe. Milan (+0.2%) hits record highs with St
The partnership between Intel and Apple on chip design in the US is driving the tech sector, but SpaceX is slipping. Attention remains focused on inflation and Fed interest rates, whilst the dollar is strengthening. Oil prices are falling again
by Chiara Di Michele and Ivan Torneo
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(Il Sole 24 Ore Radiocor) - A late surge for the European stock markets, buoyed by the rally on Wall Street, which was in turn triggered by Intel’s surge on the Nasdaq following President Donald Trump’s announcement of a partnership between the company and Apple to design chips in the United States. On the Milan Stock Exchange, the FTSE MIB closed up 0.18%, reaching new highs at 52,688 points, with ST’s surge offsetting Saipem’s slump. Oil stocks are being hit by the sharp fall in oil prices, ahead of the possible reopening of the Strait of Hormuz. WTI is trading at $74 a barrel, whilst Brent is at around $77. However, the agreement between the United States and Iran is instilling optimism, offsetting fears of a more aggressive Fed.
The other major European stock markets also rose slightly: Paris +0.4% and Frankfurt +0.3%. Meanwhile, still on the central bank front, the Bank of England, as expected, kept its base rate unchanged for the fourth consecutive meeting, at 3.75%. This was despite inflation remaining high in the UK, where the FTSE 100 bucked the trend in London, closing down 1.1%.
Wall Street closes higher. DJ +0.17%, Nasdaq +1.93%
Wall Street closes higher. The Dow Jones rises by 0.17% to 51,578.75 points, the Nasdaq gains 1.93% to 26,523.71 points and the S&P 500 rose by 1.10% to 7,501.83 points.
Wall Street, therefore, rebounded following the previous day’s negative session, which had been influenced by the Federal Reserve’s guidance. In his first press conference as head of the central bank, Warsh emphasised that the Federal Reserve will not tolerate high inflation. The central bank continues to leave the door open to an interest rate rise later this year. The CME FedWatch already estimates a 29.9% probability of a rate rise at the meeting on 29 July, paving the way for the first unpredictable outcome in several months.
The markets are being buoyed in particular by Intel, which leads the semiconductor sector following President Donald Trump’s announcement of a partnership with Apple to design chips in the United States. Other names in the sector are also on the rise, including Nvidia Corp and Micron Technology. Apple, on the other hand, is trading just above par after announcing an imminent price rise for its devices to offset the rising cost of memory chips. SpaceX, (Space Exploration Technologies) is in the red, seeking to stabilise following its first session of losses since last Friday’s record high. Pfizer is also down, after announcing that its chief financial officer, Dave Denton, will step down in mid-August.
