The ‘Google effect’ hits tech stocks; EU stock markets in the red. Oil prices rise back above $100
On the Milan Stock Exchange, Amplifon is the worst performer following its quarterly results. The focus is on the banks, with the outcome of the MPS shareholders’ meeting paving the way for Intesa Sanpaolo. Government bond yields and the spread are rising
Le ultime da Radiocor
***Audi: nel III trimestre soffre e l'utile crolla a 95 milioni, rivede guidance
Pil: Istat stima fermo in terzo trimestre, +0,8% su anno (RCO)
***BTp: spread sale a 118 punti in avvio, rendimento 10 anni a 4,54%
(Il Sole 24 Ore Radiocor) – The resumption of selling in technology shares following the publication of the quarterly results of Alphabet, Google’s parent company, is weighing on European stock markets. The FTSE MIB on the Milan Stock Exchange is therefore in the red in the final session of the week, in line with the other major European markets. Yesterday on Wall Street, Alphabet shares fell by 12.6 per cent, wiping out $500 billion in market capitalisation, and the downward trend spread to Asia overnight. Weighing on the market is the boom in investment in artificial intelligence, which has pushed the company’s cash flow into the red and has once again raised doubts about the sector’s ability to generate sufficient returns to justify the expenditure.
On the macroeconomic front, following the Fed and the ECB’s decision to maintain the status quo on monetary policy in recent days, it is now the Bank of Japan’s turn to leave interest rates unchanged.
Amplifon shares fall in Milan; banks in the spotlight
Turning back to the share market, among the leading stocks on the Milan stock exchange, the following are in the red: Stmicroelectronics , Technoprobe and Prysmian . However, the worst performer was Amplifon in the wake of its quarterly results.
The focus is on the banks following the shareholders’ meeting of Banca Monte Paschi Siena rejected the public exchange offers for Banco Bpm and Banca Generali , thereby definitively paving the way for the bid by Intesa Sanpaolo . Intesa itself has confirmed that the OPAS will go ahead, stating that it is also ready to launch a mandatory bid for Mediobanca .
Spread rises to 118 points, yields increase
In the bond market, yields on Eurozone government bonds rose broadly at the start of trading following the release of French GDP and inflation figures. The benchmark 10-year BTP is yielding 4.54 per cent, compared with 4.50 per cent at yesterday’s close, and the spread with the Bund of the same maturity has widened to 118 points from 114 at the previous close. French 10-year OATs are edging back towards 5 per cent, standing at 4.96 per cent, with a spread of 160 points against the Bund. GDP figures for Italia, Germany and the Eurozone for the third quarter are due this morning.
