Stock market: Europe braces for a recovery, with estimates for OpenAI’s revenue fluctuating
Oil prices fall as tensions over Treasuries ease
(Il Sole 24 Ore Radiocor) - European stock markets are set for a rebound at the open (Euro Stoxx futures up 0.7 per cent), whilst turbulence in the government bond and energy markets is easing and the focus is shifting back to tech investments following OpenAI’s revenue estimates. Against this backdrop, futures on the FTSE MIB in Milan are up 0.25 per cent. Futures in Amsterdam (+0.2%) and Madrid (+0.3%) are following a similar trend, whilst those in Paris (+0.9%), London (+0.9%) and Frankfurt (+0.7%) are posting more substantial gains. Meanwhile, Asia is showing mixed performance, with Tokyo’s Nikkei index holding steady, as investors focus on the slowdown in the decline in household spending in August.
It is OpenAI’s figures that are capturing the markets’ attention, particularly following the previous day’s falls in tech shares. The company behind ChatGPT is reported to have recorded an annualised turnover of nearly $50 billion in September, a full $20 billion less than previously indicated. Bloomberg reports, however, that the company could reach or exceed $70 billion by the end of the year, a figure that is fuelling optimism on the stock markets. “Price movements suggest that investors are becoming more selective about the sectors in which they wish to gain exposure and, importantly, the price they are willing to pay for future growth,” explains Chris Weston, head of research at Pepperstone. In any case, the start of the earnings season next week will be a crucial test for the tech sector and for AI-related shares.
Turning to the equity market, all eyes on the Milan Stock Exchange are on Unicredit, which, according to *Il Sole 24 Ore*, has convened an extraordinary board meeting for today, possibly focusing on Banca Generali. The spotlight is also on Generali, following reports in *Il Sole* that Marco Sesana, the current general manager of Generali, is set to step down.
Turning to the energy front, as mentioned, oil prices are down slightly after US President Donald Trump indicated that he had no intention of attacking Iran before the mid-term elections. Brent crude is thus down by 1.26 per cent, but remains above the $100-per-barrel mark at €102.96. WTI, meanwhile, fell by 1.21% to $90.3. Gas prices also fell to €77.6 per megawatt-hour (-1.5%) on the Amsterdam TTF. In the currency markets, the euro remains above the $1.12 mark, at exactly $1.1228 (yesterday’s close was $1.1211). The single currency is worth 177.59 yen (176.81), whilst the dollar/yen exchange rate stands at 158.15 (157.59). Bitcoin is up 0.9% at $82,339. Finally, gold is rising (+1.4% in spot prices to $4,191 per ounce), after yields on long-term US Treasury bonds fell from the highs reached in recent days.
