Stock market: Europe in the red during the Fed week, with Milan bringing up the rear at -1.8 per cent
Diasorin tops the FTSE MIB (+4.4 per cent), whilst Stellantis is down 10 per cent
(Il Sole 24 Ore Radiocor) - It has been a turbulent week for European stock markets, characterised by action taken by global central banks to curb inflation. Monetary policy was the main focus of attention this week, whilst the war in the Middle East is approaching its seventh month with no signs of an end in sight, keeping oil prices above $100 a barrel and fuelling inflationary fears (Brent up 0.4% for the week, WTI +2.4 per cent, gas -2.6 per cent). On Wednesday, the Fed, as expected, raised interest rates by 25 basis points – as did the BoJ today – whilst yesterday the Bank of England left interest rates unchanged but stated that a rise might be necessary should the war in Iran drag on. The European Central Bank also signalled last week the need for further tightening whilst raising interest rates, meaning that September saw the largest increase in average interest rates amongst G10 countries since July 2023.
Against this backdrop, the main European stock markets ended the week in the red, with Milan’s FTSE MIB bringing up the rear in Europe, down 1.8 per cent. The CAC in Paris (-1.5%), the DAX in Frankfurt (-1.1%) and the IBEX in Madrid (-1.6%) also fell, whilst the FTSE 100 in London held up (+0.1%). At sector level, selling pressure was felt most acutely in the automotive sector (-3.1%), followed by commodities and retail (both down 2.5 per cent). By contrast, buying interest boosted the healthcare sector (+2.9 per cent).
Turning our attention to the Milan Stock Exchange, the best-performing share of the week was Diasorin (+4.4 per cent), in line with the sector. Second place went to Poste Italiane (+3.2%), which, from Monday 21 September, will see the terms of its public takeover bid for TIM reopen following the close of the first acceptance period – a period which saw Poste Italiane’s total stake in the telecoms firm rise to 66.627 per cent of the share capital. Campari also performed well (+3.1%), with analysts optimistic about sales of ‘ready-to-drink’ products, as did Brunello Cucinelli (+3%), with experts expecting strong results for the quarter. Stellantis (-10%), on the other hand, was hit by analysts’ concerns over the recovery in margins, which in North America have lagged behind the rebound in volumes. Unicredit (-4.7%) was also down, despite progress on the Commerz deal, as was Buzzi (-4.1%). In the currency markets, the euro fell by 1.2% against the dollar during the week, whilst bitcoin gained 4.1%.
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