Stock market: Europe set for a cautious rise at the open; in Milan, the focus is on MPS ahead of an extraordinary board meeting
Crude oil prices fall; all eyes on US inflation figures and quarterly results
(Il Sole 24 Ore Radiocor) - Futures point to a cautious rise for European stock markets following last week’s turbulence. Euro Stoxx 50 futures are up 0.45 per cent. Frankfurt and Paris futures are up 0.3 per cent, whilst FTSE MIB futures are flat and Asian markets are mixed (Tokyo is closed for a public holiday).
This week, the markets will be focusing on September’s US inflation figures (on Wednesday), looking for clues as to the Fed’s next moves, with forecasts pointing to a 3.6 per cent rise in prices (up from 3.4 per cent) due to energy costs. Meanwhile, this morning, the price of oil is falling but remains volatile: after rising above $105 overnight, Brent is trading at around $104 a barrel (-0.6%), whilst WTI is above $90 (-1.2%). Traders are assessing the resilience of oil flows from the Middle East despite rising tensions following yesterday’s attack on Riyadh airport, whilst Trump has announced imports of Russian diesel. The markets are also assessing the US President’s own statements regarding the start of an energy truce between Russia and Ukraine, which has, however, been denied by both sides. All eyes are also on the start of the quarterly results season, with the major US banks leading the way, followed by the European tech giant ASML Holding. Banks are also under the microscope on the Milan Stock Exchange, on the day of MPS’s extraordinary board meeting to assess the next steps following the relaunch of Intesa Sanpaolo’s public takeover bid. On the European front, following another week of high volatility in government bond spreads, the French National Assembly begins its examination of the budget bill on Tuesday, against a backdrop of considerable uncertainty, as there is still no solid majority.
Against this backdrop, the euro remains weak, hovering around 1.12 dollars and just above 177 yen. The dollar/yen exchange rate is largely unchanged at around 158. Spot gold is down slightly at $4,183 per ounce, whilst Bitcoin is rising cautiously to $83,678.
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