Stock markets lack momentum amid uncertainty over the Strait of Hormuz and oil price volatility. In Milan (+0.1%), Eni tops the list
Wall Street was also largely unchanged. According to Pakistan, the US and Iran are close to reaching an agreement. Spot gold has returned to $4,400 per ounce
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(Il Sole 24 Ore Radiocor) - The European stock markets closed close to parity with minimal movements, whilst uncertainties in the Middle East are affecting oil and gas prices. Following the initial rally, which had pushed Brent to $90 amid renewed tensions between the United States and Iran, the price per barrel first wiped out its gains and then closed slightly higher, after Pakistan reported that Washington and Tehran are close to an agreement that could ease the tensions weighing on the energy markets.
Thus, against the backdrop of subdued trading typical of August, the FTSE MIB in Milan and the DAX 40 in Frankfurt, whilst the CAC 40 in Paris and the FTSE 100 in London. Wall Street was also largely unchanged, closing with a modest fall: the Dow Jones Industrial Average fell by 0.34% to 53,791.97 points, the S&P 500 fell by 0.35% to 7,725.76 points and the Nasdaq lost 0.60% to 26,445.45 points.
According to the IRNA news agency, Pakistan’s Home Minister Mohsin Reza Naqvi has arrived in Tehran for a new round of talks with the Iranian authorities. Furthermore, according to various media reports, Qatar’s Foreign Minister Majed al-Ansari has stated that talks between Oman and Iran on the future of shipping through the Strait of Hormuz are now at an advanced stage. The minister expressed the hope that the strait could be reopened “as soon as possible”. This news has reignited hopes of a possible agreement to restore shipping through the Strait of Hormuz.
Fluctuations in energy prices are also weighing on inflation, whilst the US is due to publish its consumer price indices on 12 August, to gauge the real outlook and try to anticipate the Federal Reserve’s next moves on interest rates. Currently, according to the CME FedWatch tool, the probability that the US central bank will raise interest rates by 25 basis points in September stands at just under 50 per cent.
Azimut, Eni and Prysmian perform well on the Milan Stock Exchange
On the main Milan stock exchange, oil shares closed higher, in particular Eni , the top performer on the FTSE MIB, and Saipem, which is also benefiting from rumours of a contract in Kuwait. Further down the list and trading slightly lower is Tenaris . Buying interest is also driving up Azimut, Brunello Cucinelli and Prysmian, with Equita raising its target price for the share to 181 euros per share from the previous 178: according to analysts, the deal with Atkore “makes strategic sense by strengthening Prysmian’s exposure to the US electrification market”. Among others, Stellantis. Meanwhile, outside the main index, The Italian Sea Group, with the Baglietto Group confirming its interest in TISG’s production assets in the La Spezia area, as reported today by Il Sole 24 Ore.
