EU stock markets fall; Eni surges in Milan following its results. Crude oil hits its highest level since May

(Il Sole 24 Ore Radiocor) - European stock markets, following the previous day’s slowdown, are still trading lower, whilst the quarterly results season continues in full swing. After all, there are many issues to be resolved: investors are wondering whether US President Donald Trump is planning a new attack on Iran following the mid-term elections, as reported by the New York Times. This prospect is supporting oil prices. Meanwhile, attacks in Ukraine show no sign of stopping, whilst in Israel anticipation is mounting ahead of next week’s elections. Against this backdrop, there is concern in Europe over the demonstrations scheduled to take place tomorrow in both France and Italia. Similarly, European bond yields continue to cause concern, particularly those of French 10-year bonds, which are hovering above the 5 per cent mark, with the spread at around 172 basis points. Tonight, Moody’s is due to announce its rating on France’s public debt.

Against this backdrop, the FTSE MIB in Milan has reversed course and slipped into negative territory, in line with the rest of the European markets.

Eni shares are rising on the Milan Stock Exchange alongside the oil sector, buoyed by better-than-expected quarterly results. Specifically, the company with the six-legged dog logo recorded an adjusted net profit of €2.8 billion in the July–September period, more than double last year’s figure, whilst over the first nine months it soared by 70 per cent to €6.43 billion. Based on these results and the improved cash flow projections for the full 2026 financial year (16.5 billion), the oil company’s management has approved the distribution in December of a special dividend of 0.46 euros per share (approximately 1.3 billion) and a further 12 per cent increase in the share buyback programme, bringing the total to 3.8 billion. Banca Akros recommends a ‘Buy’ rating on Eni shares, but sets a target price of 26 euros, which is lower than current market levels. Experts, however, believe the quarterly figures have exceeded expectations. Intermonte has also commented that the results were better than forecast. The brokerage firm, however, continues to advise caution on the stock (‘Neutral’), for which it sets a target price of 25 euros. Meanwhile, anticipation is mounting for the insights that will emerge from this afternoon’s conference call.

In Milan, other shares in the oil sector are also performing well, namely Saipem and Tenaris . Furthermore, banks are showing little movement, whilst Moncler is down following the rise recorded in reaction to its first-nine-month results. The luxury sector, however, is struggling due to the January–September turnover figures announced the previous evening after markets had closed by Kering : figures that proved weaker than expected, with Gucci still showing no signs of recovery, which is why the French group’s shares have plummeted by 10 per cent. Meanwhile, the strong revenues from Prada and Zegna have taken a back seat (Prada’s shares are rising in Hong Kong, whilst Zegna’s shares jumped by 7 per cent yesterday on Wall Street).

The price of crude oil continues to rise: WTI is now trading above $100 a barrel and North Sea Brent at around 114. Gas, meanwhile, has exceeded 90 euros per MWh. On the currency front, the euro remains above the $1.12 mark (1.1201 at the previous close), whilst the yen continues to strengthen as a safe-haven asset. Attention also remains focused on the government bond market: ten-year BTPs are yielding 4.59 per cent and the spread is above 125 points. The spotlight is on France, not least because Moody’s is due to announce its assessment of French public debt this evening: the yield on ten-year bonds remains above 5 per cent (at 5.06 per cent) and the French spread is around 174 points.