Stock market: Europe in the red on US election day; Lottomatica shines in Milan (-0.5%)
AI concerns weigh on the tech sector. US-Iran tensions drive up oil prices
(Il Sole 24 Ore Radiocor) - European stock markets continue to fall at the halfway point of the trading session, on a day when the US is holding its mid-term elections, in which a strong showing by the Democrats seems a foregone conclusion. Doubts regarding returns on investments in artificial intelligence are resurfacing in the markets, with investors reducing their risk exposure in the run-up to the US mid-term elections. Apple’s weak forecast for its gross margin during the crucial Christmas shopping quarter has also contributed to a further cooling of market sentiment. Consequently, Milan’s FTSE MIB fell by 0.5 per cent, Paris’s CAC by 0.3 per cent and Frankfurt’s DAX by 0.7 per cent. Selling pressure also prevailed on the AEX in Amsterdam (-0.7 per cent), the IBEX in Madrid (-0.7 per cent) and the FTSE 100 in London (-0.6 per cent). Futures on Wall Street are mixed, with the Dow Jones and S&P down, whilst the Nasdaq is attempting a rebound.
Meanwhile, tensions have flared up again on the geopolitical front, with the United States launching an attack on the island of Qeshm overnight. Iran’s Deputy Foreign Minister, Kazem Gharibabadi, responded immediately, stating that Tehran remains ‘in a state of war’ and warning: ‘Iran reserves the right to self-defence until the military aggression has come to a complete and definitive end’. Prices of energy commodities are therefore rising again, with Brent crude up 1.6 per cent at $106.5 per barrel and WTI up 2.1 per cent at $98.5. Gas prices are also up at €97.1 per MWh (+2.3 per cent).
On the stock market, Lottomatica (+4.7 per cent) surged to the top of the board on the Milan Stock Exchange, following positive results for the first nine months of the year and the confirmation of its guidance. Amplifon (+1.5 per cent) and Campari (+0.8 per cent) also performed well. By contrast, sales figures weighed on Stellantis (-2.55 per cent) following a fall in new car registrations in October, whilst tech stocks, particularly St (-2.3 per cent), were also under pressure; Prysmian (-1.3 per cent) also edged lower, whilst Technoprobe (-0.5 per cent) limited the damage. Ferrari took a wobble, slipping to -4 per cent following its results before recovering to +0.5 per cent: the Maranello-based firm posted a third quarter that exceeded expectations and raised its guidance for the full year.
In the foreign exchange market, the euro/dollar exchange rate stands at 1.1181 (down from 1.1198 at yesterday’s close). The single currency is also trading at 176.93 yen (176.76), whilst the dollar/yen cross rate stands at 157.23 (157.85).
