Stock markets get a breather ahead of the Fed’s decision. Tech shares are being bought in Milan
Oil prices have stabilised, whilst tensions between the United States and Iran continue and the closure of the major Saudi oil pipeline is still putting pressure on energy prices
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### Morning note: l'agenda di mercoledi' 16 settembre
(Il Sole 24 Ore Radiocor) - European stock markets are catching their breath, whilst investors await the Fed’s decisions on monetary policy: the market is bracing for the first rate rise since 2023, to which the CME FedWatch assigns a 92 per cent probability. On 17 September, it will then be the turn of the Bank of England, which is forecast to leave interest rates unchanged despite inflation rising to 3.1 per cent in August – a five-month high. Finally, on Friday 18 September, the Bank of Japan’s widely anticipated decision will bring the three-day round of central bank announcements to a close. Meanwhile, the oil price is taking a breather, retreating following recent rises and after US companies in the sector reported an increase in American reserves. Tension in the bond market is also easing, with buying seen even in government bonds, alongside a fall in yields: the yield on the 10-year Treasury has fallen back to 4.99 per cent after rising yesterday to 5.04 per cent, a high not seen for nearly 20 years.
Against this backdrop, the FTSE MIB in Milan is up, thanks to strong performance from technology and banking stocks, in line with other European markets.
Oil and tech stocks are surging on the Milan Stock Exchange
Among the leading stocks on the Milan stock exchange, technology shares are gaining ground, with Prysmian and Stmicroelectronics gaining ground. The banks, led by Unicredit after CEO Andrea Orcel began talks with the German government regarding the acquisition of Commerzbank . Meanwhile, Stellantis saw selling pressure following a report by Berenberg, which downgraded its rating on the stock.
Euro/dollar trade ranges narrowly. Oil prices fall
In the foreign exchange market, the euro/dollar pair is trading little changed above the 1.15 mark, down from 1.1540 at the close the previous day. . On the energy front, as mentioned, oil prices are falling: the October WTI futures contract is trading below $105 per barrel and the November Brent contract is hovering around 108. Natural gas prices are falling, whilst remaining above 80 euros per megawatt-hour in Amsterdam.
Spread down slightly, yield stable
The spread between BTp and Bund bonds is trending slightly downwards. The yield spread between the benchmark 10-year BTp and the German bond of the same maturity stands at 87 basis points, down from 88 points at the previous close. The yield on the benchmark 10-year BTp is also broadly stable, at 4.41%, unchanged from the previous day.
