EU stock exchanges believe in glimmers of peace, but Milan remains in the doldrums. Oil falls
Brent for July remains at 110 dollars/barrel, European gas below 50 euro/mwh. Spread with Bund at 75 basis points, yield at 3.90 per cent
by Chiara di Cristofaro and Stefania Blasioli
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(Il Sole 24 Ore Radiocor) - Europe is trying to believe in glimmers of peace in Iran and the European indices are moving into positive territory. US President Donald Trump postponed the threatened attack on Iran, leaving room for peace talks. The result was an easing of the pressure on oil. This, however, does not change the picture of high market fragility and volatility: fears over the medium- and long-term effects of inflation have pushed up government bond yields (the Japanese 30-year, the German 10-year at 3.14% and the Italia 10-year at 3.9%) and are weighing on tech, as seen in Asia and on the Nasdaq on the eve of the meeting. This week, the wait this week is for Nvidia Corp's quarterly report, which could bring volatility to the markets. "Recall that usually stocks like Nvidia can move +/- 8% after a quarterly, as a result the stock could move around $400 billion in a short time," says David Pascucci, analysts at Xtb.
In Milan, Avio, weak oil and tech
In Milan, the Avio after the launch of the scientific satellite Solar wind Magnetosphere Ionosphere Link Explorer (SMILE) for the European Space Agency (ESA) and the Chinese Academy of Sciences (CAS) with a Vega C launcher. Also purchased at Nexi Inwit and Leonardo . On the rise Stellantis after the launch of the E-Car project, for the production of small electric cars, with the first release planned for 2028 at the Pomigliano d'Arco plant. Sell-offs on Prysmian and Stmicroelectronics , which were affected by the sell-off in tech. Oil was also weak as crude oil fell: Eni , Saipem .
Oil and gas down, dollar on the rebound
US President Donald Trump postponed the threatened attack in order to make room for negotiations and the price of oil went back down (-1.65% the Brent future at 110.24 dollars and -4.8% the Wti future at 103.4 dollars), but the levels are still very high and the signs of détente not yet decisive. On the currency, the dollar is recovering with the euro crushed below 1.17 while in energy, the European gas is below EUR 50 per Mwh, pending Russian President Vladimir Putin's visit to China.
Spread with Bund at 75 basis points, yield at 3.90%
Slight decline for the spread between the BTp and Bund. At the start of the session, the yield spread between the benchmark ten-year BTp and the German Bund of the same duration stood at 75 euro from 76 basis points yesterday. Also down fractionally was the yield on the benchmark 10-year BTp, which started the session at 3.90 per cent from 3.92 per cent previously.
