EU stock markets remain cautious. Starmer’s departure fails to unsettle London or the pound
All eyes are also on the Middle East where, despite Trump’s inflammatory remarks, the first round of talks has seen some progress. In Milan, the coupon yield stands at 0.21 per cent, whilst oil prices are still falling
by Eleonora Micheli and Martina Soligo
Le ultime da Radiocor
*** Leonardo: Mariani apre a Germania nel Gcap, benefici, ma rischio ritardi (FT)
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Uk: il primo ministro Keir Starmer si e' dimesso (RCO)
(Il Sole 24 Ore Radiocor) - Europe begins the week on a cautious note, with all eyes firmly fixed on the situation in the Middle East. Despite President Donald Trump’s inflammatory remarks against Tehran following the closure of the Strait of Hormuz, Vice-President JD Vance stated that the first round of talks had made progress. This position was also confirmed by the Iranian Foreign Minister, Abbas Araghchi.
Thus, oil continues its downward trend, whilst the indices remain weak: the FTSE MIB in Milan (affected by the ex-dividend adjustment of 0.21%), the CAC 40 in Paris and the other European markets. In the UK, the announcement of Prime Minister Keir Starmer’s resignation does not appear to have shaken the FTSE 100 nor the pound.
St takes off in Milan, luxury sector sluggish
On the Milan Stock Exchange, Stmicroelectronics is leading the way, fuelled by renewed enthusiasm for the artificial intelligence sector. Unipol and Nexi. Investors are wondering about the future boundaries of the banking system following the current wave of consolidation. The spotlight is particularly on Banca Monte Paschi Siena, whilst awaiting the bank’s opinion on the proposals put forward byIntesa Sanpaolo and Banco Bpm. The luxury sector is weak, with Moncler and Brunello Cucinelli .
Oil prices fall, gas prices rise
On the foreign exchange market, the euro/dollar exchange rate remained largely unchanged at 1.14. On the energy front, as mentioned, the decline in oil continues to fall, with WTI at around $75 a barrel, whilst Brent is trading at around $78. On the other hand, natural gasis on the rise, trading above 42 euros per megawatt-hour in Amsterdam.
Spread down slightly; 10-year yield also down
The spread between BTp and Bund has fallen slightly: the yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stood at 70 basis points, down from 71 points at the close of trading last Friday. The yield on the benchmark 10-year BTp also fell, starting the session at 3.66%, down from 3.69% at the previous close.
