Defence and oil sectors weigh on EU stock markets; Milan (-0.7%) brings up the rear, losing 52,000 points
Leonardo is bearing the brunt of Rheinmetall’s slump in Frankfurt. All eyes are on Micron Technologies’ results. Oil down 5 per cent; gold hits an eight-month low below $4,000 an ounce
by Enrico Miele and Paolo Paronetto
Le ultime da Radiocor
Wall Street: record Dow Jones (+1,5%), Apple (-4,9%) pesa sul Nasdaq (RCO)
Borsa: Milano in altalena sulla scia di Wall Street, passa in rosso poi recupera (RCO)
Wall Street: S&P e Nasdaq ora in calo, pesano ribassi Apple (-4,7%) e Nvidia (-3%)
(Il Sole 24 Ore Radiocor) - Selling in defence and oil stocks is weighing on European stock markets, whilst investors await the publication of Micron Technology’s results to assess whether demand for artificial intelligence infrastructure remains strong enough to sustain the rally in share prices. The European stock markets thus closed with mixed results, with the FTSE MIB on the Milan Stock Exchange recording the day’s worst performance, falling below the 52,000-point mark for the first time since 15 June. The situation in the Middle East naturally remains under close scrutiny, whilst the decline in risk aversion is pushing down the price of gold and oil.
Oil shares fall; the defence sector takes a hit from Rheinmetall’s slump
On the Milan Stock Exchange, PEni Poste Italiane boosted by Barclays’ positive assessment, which has also driven up Telecom Italia . Banks were once again in the spotlight, particularly following the news that emerged the day before. The chief executive of Banca Monte Paschi Siena , Luigi Lovaglio, stated that the bank would evaluate all the options on the table, seeking to guarantee the institution’s independence. Andrea Orcel, CEO of Unicredit , for his part, stated that in Italia the group will remain on the sidelines as a spectator, whilst continuing its campaign to take over Commerzbank , over which it is increasingly close to gaining control. Following yesterday’s slump alongside the entire tech sector, Stmicroelectronics and Prysmian remain under the investors’ microscope. The defence sector is under pressure, with Avio and Leonardo , dragged down by the slump in Rheinmetall following the German government’s decision to halt the construction of six frigates. Among oil companies, Eni and Saipem .
Oil down 5 per cent, euro below 1.14
On the energy front, oil prices are falling sharply: the August WTI futures contract has fallen below $70 a barrel and is now down 3.72% at $70.49, whilst the Brent contract for the same expiry date is down 3.87% at $74.10.
On the foreign exchange front, the dollar continues to strengthen on the prospect of a rate rise by the Federal Reserve: the euro has fallen to 1.1350 dollars from 1.1380 at Tuesday’s close. The single currency is also trading at 183.60 yen (down from 183.86), whilst the dollar/yen exchange rate stands at 161.75 (up from 161.60).
Spread stable at 72 points, yields falling
In the bond market, the spread between BTp and Bund closed unchanged. At the close of trading, the yield spread between the benchmark 10-year BTp and the German Bund of the same maturity stood at 72 basis points, unchanged from yesterday’s close. By contrast, the yield on the benchmark 10-year BTp fell, ending the session at 3.59 per cent, down from 3.64 per cent at the previous close.
