Stock markets: Europe up as Brent falls below $100. Tech stocks surge in Milan
Hopes are growing that the Fed will postpone a further interest rate rise until the end of the year. Meanwhile, the government bond market remains under pressure
Key points
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(Il Sole 24 Ore Radiocor) - The fall in the price of oil, with Brent below $100 a barrel, and the belief that a further rise in Fed rates will be postponed until the end of the year are giving a boost to European stock markets, which are following Wall Street’s record highs set the previous day, with investors focusing on the resilience of the economy and corporate results. Pressure on government bonds remains high, however, with the yield on 30-year Treasuries falling to 5.626 per cent after hitting a new high since 2002 of 5.702 per cent the previous day. Meanwhile, on the energy front, data from shipping companies showed that on many days in late September, oil exports from the Gulf region exceeded pre-war levels, easing supply-side concerns.
In this context, the FTSE MIB in Milan is performing well, as are the other European stock markets. Paris is also up, albeit to a lesser extent (CAC 40), which remains under close scrutiny due to uncertainties surrounding the political and fiscal situation. Wall Street futures are also up, where yesterday the Nasdaq hit a new high on the back of relief that the Fed’s next monetary tightening is likely to be postponed until the end of the year, which will limit the cost of the funding needed to sustain the AI boom
Tech in the spotlight on the Milan Stock Exchange
Among the leading stocks on the Milan stock exchange, buying activity is favouring the tech sector, following gains by US giants: standing out are Technoprobe and Stmicroelectronics. Good A2a, Inwit and Unicredit. On the rise towards 53 euros Recordati Ord , after the CVC and GBL funds relaunched the takeover bid, raising the price to 53 euros per share. Oil stocks, on the other hand, were weak, with Saipem and Eni .
Euro/dollar at 1.12. Oil prices down
In the foreign exchange market, the euro is attempting to hold above the 1.12 dollar mark after slipping to a 17-month low around 1.1160. On the energy front, WTI crude oil for November is trading below $89 a barrel, whilst December North Sea Brent is trading below $100. The fall followed an increase in exports from the Persian Gulf and a price cut by Saudi Arabia, signs of easing tensions in the market.
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