Stock market: Mixed performance across Europe with Brent at $102; Milan (-0.4%) brings up the rear, led by Buzzi
Banks are also struggling, tech shares are surging and oil prices are rising
(Il Sole 24 Ore Radiocor) - European stock markets are seeking direction following the previous day’s strong performance, driven by renewed momentum from the tech sector and optimism surrounding AI, which pushed the Nasdaq to new record highs, whilst oil prices have rebounded and Brent crude has returned to the $102 mark. In early trading, Milan is pulling back, with the FTSE MIB down 0.46 per cent but still above 52,000 points at 52,259; Frankfurt is also down (-0.14 per cent), whilst Paris is holding firm at +0.07 per cent. Amsterdam is performing strongly, benefiting from rising tech shares and climbing by 0.43 per cent. The market is looking for cues to continue its upward trend, but today all eyes are on New York, where US President Donald Trump is due to address UN delegates, whilst Chinese President Xi Jinping is due to arrive on Wednesday (with the official Xi-Trump summit in Washington taking place on Thursday). Meanwhile, hopes of an easing of tensions in Iran are keeping oil prices in check: Trump has expressed a willingness to meet with Iranian officials travelling to New York to attend the UN General Assembly. Crude oil, however, is rebounding after the falls seen in recent sessions, whilst concerns over supply risks in the Middle East persist, and Brent is once again trading around the $102 mark (+1.6% at 101.95).
On the Milan stock exchange, Buzzi is weighing on the performance of the main index with a 3 per cent fall, whilst UBS has issued a ‘sell’ recommendation on the share. Diasorin, Unipol and Generali are also performing poorly, with falls of over one percentage point, whilst the defence sector is weak, with Avio and Leonardo losing 0.85% and 1.05% respectively. The banking sector as a whole is in the red, and utilities are also performing poorly. Leading the gains were ST (+1.05%) and Prysmian (+0.95%), whilst oil stocks were strong, with Eni rising by 0.9% and Tenaris by 1%. Industrie De Nora plummeted by 11 per cent to €6.565 following the placement of a 5 per cent stake in Snam at €6.69.
In the currency markets, the euro/dollar is trading around 1.146 (slightly below yesterday’s European close of 1.1469). The yen remains weak at three-week lows: the single currency is trading at 180.78 yen (up from 180.6 yen), whilst the dollar/yen stands at 157.7 (up from 157.46). Bitcoin is up 4% at 85.230 dollars. European gas is at 74.2 euros per MWh (+1.7%).
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