Stock market: Europe set for a subdued start; all eyes on tech, quarterly results and US inflation
Milan is the exception (futures up 0.6 per cent), with the focus on banks
(Il Sole 24 Ore Radiocor) - Futures point to a lower or largely flat opening for European markets, following a volatile week marked by the US mid-term elections and concerns over the artificial intelligence sector, which – following the Democrats’ victory – could face stricter regulation and a slowdown in the construction of data centres. These concerns are now giving way to greater confidence in the Asian markets, where tech shares are rebounding, following the recovery that began on Friday on Wall Street, with Taiwan leading the way, after local authorities introduced measures to restore investor confidence. Tokyo also performed well, closing with a gain of over 2 per cent.
European stock markets, on the other hand, are set for a weaker start, with Euro Stoxx 50 futures trading flat, as are those on the CAC in Paris and the DAX in Frankfurt. Milan is the exception, with FTSE MIB futures up 0.6 per cent.
Investors continue to keep a close eye on the quarterly results season, which is still in full swing in Europe. On the Milan Stock Exchange, attention remains focused on the banking consolidation: Unicredit reported improved results (“the best quarter ever”, said Orcel) and raised its 2026 guidance, whilst Intesa Sanpaolo received Consob’s green light for its takeover bid for MPS. Crédit Agricole has finally taken the plunge and opened the long-awaited new chapter in the Italian banking game of Risk. The ‘Banque Verte’ has in fact proposed to Banco BPM “to enter into negotiations regarding a merger between Banco BPM and Crédit Agricole Italia” in order to “create a new Italian banking powerhouse together”.
On the macroeconomic front, the highlight of the week is tomorrow’s release of US inflation figures for October, which analysts expect to show a slowdown. This is an important figure for interest rate policy, ahead of the Fed’s December meeting. On the ECB front, the Ecofin meeting takes place today and is also expected to discuss the successor to Christine Lagarde, who is due to step down in February.
