EU stock exchanges held back by new US-Iran tensions. Milan (-1%) falls from highs, Stellantis blacklisted

(Il Sole 24 Ore Radiocor) - IPO fever cooled on the markets and geopolitical issues returned to the fore. The European stock markets moved away from their highs, still held back by the escalation of tensions in the Middle East, and with speculation of further tariffs from the US. So Milan closed down about a point, but held above the 50,000-point mark, after the record reached on the eve of the FTSE MIB at 50,578 points. Also down were the CAC 40 of Paris, the DAX 40 of Frankfurt, the IBEX 35 of Madrid, the AEX of Amsterdam and the FTSE 100 of London.

After days of increasing tension, the US and Iran have in fact returned to attacking each other. An Iranian drone offensive against Al Kuwait International Airport stands out, while Israeli operations in Lebanon, condemned by Tehran, threaten to derail US-Iran talks. "It is unclear whether talks to end the conflict and reopen the Strait of Hormuz are ongoing, but recent developments suggest that investors may have been too hasty in discounting the effects of the memorandum of understanding promised last week," commented Kathleen Brooks of Xtb.

The effects of the prolonged conflict on economic performance are also starting to worry the OECD, which has revised global growth downwards in case the war continues. The effects of the energy shock will not only be seen on inflation, but also on growth, as also certified by the OECD. Thus, while the closure of the Strait of Hormuz also continues the rise of oil prices. The European natural gas traded in Amsterdam also decidedly upwards, approaching the 50 euro per MWh mark again.

Further worsening the climate on European stock markets is the new proposal of tariffs by the US against 60 economies, including China, the European Union, Japan, India and Mexico. The proposal, which is not final, is the result of investigations launched in March by the Trump administration, which invoked a 1974 trade law to find a legal way to reinstate the tariffs annulled in February by the Supreme Court.

The US stock market is trading on a weak note, with moderate declines after the eve's record highs. The situation in the Middle East remains under scrutiny: US President Donald Trump said that Iran has agreed not to acquire nuclear weapons, but added that 'they may change their minds'. On the stock market, Marvell Technology continued to rally, up 11% in premarket after posting its best day ever on the eve of the event, with a 32% jump due to the endorsement of Nvidia CEO Jensen Huang, who said that the semiconductor company could become the next trillion dollar company. Macy's stock also did well, after posting its strongest first quarter growth in four years; the company also revised its full-year forecast upward.