Stock markets: the slump continues as oil and gas prices surge. Banks drag Milan down
Tensions on the government bond market persist, with yields remaining at very high levels. On the Milan Stock Exchange, ‘Risiko’ takes centre stage
Le ultime da Radiocor
Borsa: prosegue l'emorragia con balzo petrolio e gas, banche affossano Milano (-1%)
*** BTp: spread sale a 118 punti in avvio, rendimento decennale al 4,69%
*** Borsa Tokyo: chiude in calo dell'1,42%, preoccupano tensioni in Iran
(Il Sole 24 Ore Radiocor) - European stock markets are still trading lower, weighed down by the performance of government bonds, with yields remaining at very high levels. On the eve of trading, however, the US Treasury sold ten-year bonds worth $39 billion at auction, with yields at 5.3 per cent. This is the highest auction yield since November 2000. Complicating the picture further is the rise in crude oil prices, which have resumed their upward trend following reports by Axios regarding a Pentagon order for the armed forces to prepare for a possible resumption of attacks in the Middle East. Brent has thus surged past $104 a barrel. gas is also surging, approaching the 80-euro-per-MWh mark.
In this context, Milan (FTSE MIB ) is trading in the red, weighed down by the tech and banking sectors. After all, high interest rates can be detrimental to the credit sector, affecting the economy and demand for mortgages and loans.
Banks in the spotlight on the Milan Stock Exchange
On the Milan Stock Exchange, the spotlight is on the banks involved in the banking crisis. Banca Monte Paschi Siena is in the spotlight, as the market awaits CEO Luigi Lovaglio’s response to the OPAS launched by Intesa Sanpaolo , which, following Delfin, has now also been backed by the Benettons and Caltagirone. Meanwhile, Unipol has launched a capital increase to fund the transaction. In a second phase, the insurance group will acquire around half of MPS’s branches and its head office, which will then be transferred to Bper Banca to proceed with the merger. The 2.5 billion transaction, which has already been approved by the majority cooperative shareholders, who are ready to participate, will take place at a discount of 18.75 per cent on the TERP. Despite the positive outlook from Samsung, which forecasts a year-on-year surge of over 780 per cent in its third-quarter operating profit, driven by soaring semiconductor prices and the AI boom, tech shares are performing poorly, with Stmicroelectronics and Technoprobe. Conversely, Eni shares are in high demand, driven by the price of crude oil. Outside the main index, Gens Aurea following the accelerated placement of 5 per cent of its share capital.
Euro/dollar below the 1.12 mark. Spread on the rise
On the foreign exchange front, the euro remains below the 1.12-dollar mark. The upward trend continues for the spread between BTPs and Bunds. Amid tensions in the Middle East and their knock-on effects on the energy market, the yield spread has risen further following yesterday’s trading session, when the yield curve had already been pushed upwards due to market tensions. The yield spread between the benchmark 10-year BTp and the German bond of the same maturity stands at 118 basis points, up from 115 the previous day. The yield on the benchmark 10-year BTp rose to 4.69 per cent from 4.63 per cent the previous day.
Asia down, the Nikkei falls by 1.4%
In Asia, share markets are falling due to tensions over government bonds, exacerbated by reports that some major technology firms are seeking to raise billions through debt issues, thereby competing directly for limited funding. The Tokyo Stock Exchange closed sharply lower. The Nikkei index lost 1.42 per cent to 69,042.11 points. Japanese shares suffered a sharp fall, driven in particular by uncertainty over borrowing costs and the ongoing conflict with Iran.
