Stock market: Europe remains cautious, but the Nvidia effect boosts tech shares; in Milan, ST and Prysmian lead the way
Crude oil prices fall, with Brent at $86 and WTI at $81
(Il Sole 24 Ore Radiocor) - European stock markets got off to a cautious start, in the wake of US inflation figures that were slightly higher than expected, reigniting doubts about the Fed’s next moves on interest rates. Further clues may emerge tomorrow from the speech by the US central bank’s chairman, Kevin Warsh, at the annual Jackson Hole symposium, which begins today. As a result, Milan’s FTSE MIB is trading flat (+0.01%), as is Madrid’s IBEX (+0.05%). Frankfurt’s DAX is performing better (+0.13%), whilst the CAC in Paris (-0.2%), the AEX in Amsterdam (-0.1%) and the FTSE 100 in London (-0.4%) remain below par.
The market, however, is welcoming Nvidia’s record results (+5.7% in after-hours trading), published yesterday after the markets had closed. The tech giant reported that its net profit and turnover had more than doubled, and provided revenue forecasts that exceeded estimates. The results have strongly confirmed the viability of the artificial intelligence infrastructure sector, according to Saxo Markets. The challenge will be to absorb the large supply capacity associated with the memory sector and, consequently, to maintain high demand for AI-related chips.
In the background, tensions in the Middle East persist, with Iran describing the latest threat of US sanctions as an “act of state and economic terrorism”, whilst Iranian Deputy Foreign Minister Kazem Gharibabadi stated that Tehran would not allow military vessels to transit through the Strait of Hormuz under the agreement it is negotiating with Oman for the management of maritime traffic in the strategic waterway. Although the situation shows no sign of easing, oil prices are still falling, with Brent at $86.6 per barrel (-1.4 per cent) and WTI at $81 (-1.5 per cent). Gas prices are also down slightly at 65.1 euros per megawatt hour (-0.7 per cent).
On the stock market, tech shares are leading the way on the Milan Stock Exchange in the wake of Nvidia’s results: ST is leading the way at +3.5 per cent, followed by Prysmian at +3.3 per cent. Oil companies are attempting a recovery following the previous day’s falls, with Saipem up 0.3 per cent and Tenaris up 0.1 per cent. Shares in the key players in the banking sector are largely unchanged on a day when Generali (-0.1%) is holding a board meeting to assess the bid from MPS (-0.2%) for its subsidiary Banca Generali (+0.4%). Campari (-0.8%) came under selling pressure, affected by the declining results of the French firm Pernod Ricard: the spirits company saw its annual profit fall by 26% to €1.2 billion. Bringing up the rear was Ferrari (-1.2%).
