Stock markets: Europe mixed, with eyes on the Middle East. St performs well in Milan

(Il Sole 24 Ore Radiocor)- The European stock markets are trading mixed at the halfway point of the session, after the United States and Iran agreed to suspend the mutual attacks that had marked a resumption of hostilities and to continue discussions on the memorandum of understanding later this week. Specifically, according to a report by Axios, Washington and Tehran have agreed to a new suspension of attacks and have scheduled a meeting for tomorrow in Doha to discuss the management of the Strait of Hormuz. “Both sides will cease” the attacks “for the time being and ships will be able to move freely” within and around the Strait of Hormuz, explained a US official. Against this backdrop is the threat to Europe, issued last week by US President Donald Trump, of 100 per cent tariffs against any country introducing a digital tax.

Meanwhile, the ECB forum in Sintra will begin in the late afternoon, with an opening address by President Christine Lagarde. The meeting, which will conclude on 1 July, will focus on growth and economic stability in the Eurozone. On a macroeconomic level, it is set to be a week packed with data, starting with European inflation figures (Wednesday 1 July) and US employment figures (2 July). Thus, FTSE MIB is trading slightly higher; following a similar trend, the DAX 40 is also on a similar trend; further behind is the CAC 40 . Across the Atlantic, meanwhile, futures point to a positive start to the session for Wall Street.

On the Milan main market, the spotlight is on STMicroelectronics is in the spotlight on the Milan main market after the South Korean government unveiled a colossal plan, worth over 1,000 billion euros over ten years, to build semiconductor manufacturing plants and data centres for artificial intelligence. On the banking front, Risiko remains in the spotlight alongsideIntesa Sanpaolo which, over the weekend, filed its offer document with Consob for Banca Monte Paschi Siena . It is precisely regarding the Siena-based bank that the Ministry of Economy and Finance (MEF) has issued a clarification, denying the possibility of an imminent sale of its 4.8% stake in the bank. Outside the main index, in the spotlight Trevi Fin Ind is in the spotlight after Icop launched a full-scale public offer aimed at delisting the company.

On the foreign exchange market, the euro is once again approaching the 1.14 dollar mark and is trading at 1.1396, up from 1.1382 at Friday’s close. The single currency is also worth 184.41 yen (up from 184.15 on Friday), whilst the dollar/yen exchange rate stands at 161.82 (up from 161.73). Oil prices have remained largely unchanged, having given up the gains recorded overnight before the halt to the latest escalation in the Middle East: August WTI futures are trading around $69 per barrel and Brent futures for the same month are trading around $72. Natural gas on the Amsterdam TTF platform rose by 1.7% to 41.5 euros per megawatt-hour. Finally, the price of gold fell: spot delivery dropped by 0.8% to 4,056 dollars per ounce.

The spread between BTp and Bund bonds has risen slightly. At the start of trading, the yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stood at 74 basis points, up from 73 basis points at the close of trading last Friday. The yield on the benchmark 10-year BTp also rose slightly, opening at 3.59%, up from 3.58% at the previous close.