EU stock markets rise as anticipation builds for Warsh’s speech at Jackson Hole. Banks rebound in Milan

(Il Sole 24 Ore Radiocor) - European stock markets remain buoyant, whilst market attention is focused on the anticipation surrounding the speech by the Fed chairman, Kevin Warsh, at the annual central bank symposium in Jackson Hole. In particular, investors are expecting greater clarity on the future trajectory of monetary policy, given that Warsh has so far deliberately refrained from providing any guidance on the US central bank’s plans to ensure price stability. This is his first speech as a member of the Fed’s Board of Governors, coming at a time when inflation is running above target and the bond market is under pressure

So, whilst attention also remains focused on the developments in the Middle East – with the prospects of an agreement on the reopening of the Strait of Hormuz looking increasingly slim – the FTSE MIB in Milan, the CAC 40 in Paris, theDAX 40 in Frankfurt and other European markets. Futures on Wall Street are trading mixed

On the stock market, banking shares are performing well on the Milan Stock Exchange, with attention focused in particular on the key players in the banking sector. Consequently, Mediobanca, Banca Monte Paschi Siena and Intesa Sanpaolo . But buying interest is also being seen inUnipol following an interview in *Il Sole 24 Ore* with Chairman Carlo Cimbri, who emphasised that MPS, as part of the reorganisation linked to Intesa Sanpaolo’s OPAS, will lead Italia’s second-largest banking group, which will also incorporate Bper Banca. Meanwhile, on the eve of the announcement, the board of directors of Generali confirmed its willingness to consider MPS’s proposal regarding Banca Generali , whilst emphasising that no agreement has been reached. Luxury stocks rise with Moncler and Brunello Cucinelli following Essilorluxottica launched a share buyback programme for 5 million shares. The defence sector was weak, with Leonardo lagging behind following rumours in the Financial Times regarding a possible U-turn by the UK Chancellor of the Exchequer, John Healey, on defence spending targets in the budget he is due to present in October.

The oil price has reversed course and continues to rise, with October Brent trading at around $90 a barrel and WTI for the same expiry date still down at around $83. Whilst the Trump administration has informed mediators that it has no interest in returning to the terms of a preliminary agreement reached with Iran – which subsequently collapsed – the market has chosen to latch onto the positive signals that emerged earlier this week from the agreement reached between Iran and Oman, regarding the distribution of revenues from the Strait of Hormuz, which has fuelled hopes that the waterway might reopen to oil tankers. European European natural gas on the Amsterdam platform, where it is trading at 68 euros per megawatt-hour.

On the currency market, the US dollar has seen little movement, with the single currency trading at around 1.164 against the greenback. According to OCBC Group Research, the greenback ‘could find support if Warsh and other Fed officials allay fears of currency devaluation and reaffirm their commitment to bringing inflation back to the 2 per cent target’. Bitcoin is down to around $79,700. Gold is largely unchanged, with the spot price at around $4,580 per ounce.