Stock market: Europe sees a cautious rise. Focus on Big Tech results
Asian markets rise in the wake of Wall Street. Oil prices are rising
European stock markets (Euro Stoxx futures +0.1%) are set to build on the previous day’s gains, whilst the quarterly results season is now in full swing. Against this backdrop, contracts on the Milan stock exchange (+0.08%) are edging up cautiously, as are those on the Paris (+0.4%), London (+0.2%), Frankfurt (+0.2%) and Madrid (+0.09%) exchanges. Only those in Amsterdam (-0.2%) are bucking the trend. Meanwhile, the Asian markets are mixed, with the Nikkei (-0.1%) edging lower.
As mentioned, the day’s trading will be driven by corporate results. Across the Atlantic, all eyes are on the big tech firms – Alphabet, IBM, Tesla and Texas Instruments – which could provide indications that bolster the renewed confidence in AI that drove the markets higher yesterday. In Europe, meanwhile, attention is turning to the luxury sector with Moncler and the energy sector with Iberdrola – which, moreover, yesterday acquired 80 per cent of the Finnish company Caruna for 2 billion – whilst the first encouraging signs came as early as this morning from the record net profit of 7.33 billion euros (+15 per cent) posted in the first half of the year by Banco Santander, Europe’s largest bank by market capitalisation.
Meanwhile, investors are analysing Donald Trump’s latest moves on tariffs. The US President has announced that, from August 2028, generic medicines will be subject to tariffs of 100 per cent, rising subsequently to 200 per cent. A measure which, according to him, aims to bring pharmaceutical production back to US soil and which is fuelling fears of a new trade offensive by the United States, given that the temporary 10 per cent tariffs imposed globally are due to expire at midnight on Friday.
Turning to the stock market on the Milan Stock Exchange, Saipem is in the spotlight following a new $260 million offshore drilling contract in the Ivory Coast, whilst Unicredit has been placed under review by Moody’s for a possible rating upgrade following its bid for Commerz.
On the currency front, the single currency is trading at 1.141 dollars (unchanged from yesterday’s close) and 186 yen (up from 185.9), whilst the dollar-yen exchange rate stands at 163 (up from 162.9). On the energy front, oil prices continue to rise, with US Secretary of State Marco Rubio stating that Iran ‘is not taking the negotiations seriously’. Brent crude rose by 1.3% to $92.24 per barrel and WTI by 1.15% to $85.3. Gas prices in Amsterdam are up to 60 euros per megawatt-hour (+0.7 per cent). Gold is at a two-week high, with futures at $4,133 (+1.4 per cent).
