Stock market: Europe in positive territory ahead of Warsh’s remarks; in Milan (+0.15%), all eyes remain on the banks

The euro falls back below $1.16. Crude oil prices remain stable

European stock markets are trading higher at midday, as investors await the opening of Wall Street, SpaceX’s next launch and, above all, the speech to be delivered this evening by Kevin Warsh, the new Chair of the Federal Reserve, at the conclusion of the FOMC’s two-day meeting. According to analysts, the US central bank is set to leave interest rates unchanged.

The new macroeconomic landscape emerging following the agreement between the United States and Iran – which is set to lead to the reopening of the Strait of Hormuz – is also helping to bolster market sentiment. Hence the expectations of a slowdown in inflation, aided by the fall in oil prices, which remain at modest levels today compared with recent weeks, pending the official signing of the agreement, scheduled for Friday in Geneva. WTI is trading at $76.2 per barrel (+0.1%).

Paris is up 0.3 per cent, Frankfurt 0.15 per cent, Amsterdam 0.7 per cent and Madrid 1.4 per cent. Milan is up 0.15 per cent and remains at record highs. US futures are mixed, with the Nasdaq futures contract up 0.5%.

On the Milan Stock Exchange, Banco BPM (+1.7%) is in the spotlight. Whilst awaiting a response from MPS (-0.18%) regarding the potential merger proposed in recent days, the bank is reportedly examining the BFF (+10.8%) deal alongside Amco. Intesa Sanpaolo shares remain stable, whilst Unipol rises by 0.5%. The two groups have put forward an alternative plan for the acquisition of MPS to that proposed by Piazza Meda. UniCredit gains over 1%, whilst investors are trying to gauge what CEO Andrea Orcel’s next moves will be, both in Italia – where the group currently appears to be on the sidelines of banking consolidation – and in Germany, following Berlin’s opposition to a possible acquisition of Commerzbank (+3.3%). UniCredit already holds a majority stake in the German bank, taking into account its positions in derivatives. Stellantis fell by 1.6 per cent, affected – along with the entire European automotive sector – by the profit warning issued by BMW (-6.4 per cent).