Stock market: Europe remains cautious as tech shares show signs of a rebound; Milan up 0.1 per cent
Technoprobe is up 2.5 per cent. In Paris, Essilux is up 11 per cent
(Il Sole 24 Ore Radiocor) - European stock markets opened the session with a cautious rise, but then lost momentum and settled around the break-even point. Milan’s FTSE MIB, having opened 0.3 per cent higher, is now trading 0.14 per cent higher, whilst Paris’s CAC is up 0.2 per cent and Frankfurt’s DAX is down 0.1 per cent. Amsterdam’s AEX is up (+0.1 per cent), whilst Madrid’s IBEX (-0.14 per cent) and London’s FTSE 100 (-0.05 per cent) are trading below par, with inflation rising to 3.5 per cent year-on-year in September. Overall, sentiment towards the technology sector is improving, although doubts remain about the sustainability of the trend linked to artificial intelligence, despite SpaceX’s better-than-expected results and Super Micro Computer’s upward revision of its forecasts bringing a degree of optimism to the sector. Investors are increasingly focusing on the strength of balance sheets and the sustainability of debt levels among companies linked to artificial intelligence, whilst the quarterly results season continues in full swing on both sides of the Atlantic. Given the sector’s strong growth, attention is also focused on companies’ ability to finance investments and generate sufficient cash flows.
On the Milan Stock Exchange, tech shares are showing signs of a rebound, with Technoprobe leading the main index up 2.5 per cent, whilst Prysmian (+2.4 per cent) and STMicroelectronics (+1.5 per cent) are also performing well. Oil stocks were also in demand, with Eni up 1.75 per cent, Saipem up 1.84 per cent and Tenaris up 0.8 per cent, buoyed by oil prices rising again following fresh attacks on ships in the Strait of Hormuz, which are jeopardising shipments. Consequently, Brent crude rose by 1.3% to $110.2 per barrel, whilst WTI traded at $99.35 (+1.56%). Banks were weak, with Banco BPM down 0.6 per cent and UniCredit down 0.4 per cent, whilst Nexi brought up the rear, down 2.3 per cent. Outside the main index, Salvatore Ferragamo fell by 3.6 per cent after reporting first-nine-month results in line with expectations, but with a third quarter marked by falling sales. Conversely, strong quarterly results are boosting EssilorLuxottica, which rose by 11 per cent in Paris after releasing figures last night showing the company closed the third quarter with revenues up 9 per cent to 7.49 billion.
In the currency markets, the euro fell to 1.1223 dollars (from 1.1233 dollars at yesterday’s close) and is trading at 177.44 yen (177.65). The cross rate between the US dollar and the Japanese yen stood at 158.12 (158.17). Finally, gas prices resumed their rise to 87.8 euros per MWh (+3.2 per cent).
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