Stock market: Europe up at mid-session; banks shine in Milan (+0.7%)
Oil prices rise, the euro falls back below $1.12
(Il Sole 24 Ore Radiocor) - European stock markets continue to rise as the morning session draws to a close. In Milan, the FTSE MIB is up 0.67 per cent and remains just above the 50,000-point mark, which it has only just regained. Paris (+0.3 per cent), Frankfurt (+0.65 per cent), Madrid (+0.9 per cent), Amsterdam (+0.4 per cent) and London (+0.7 per cent) are also performing well, whilst government bonds remain under scrutiny as oil prices have started to rise again. According to data from Kpler, oil flows through the Strait of Hormuz remain ‘well below pre-war levels’, with a ‘sharp drop at the end of last week’, whilst attacks on oil tankers are fuelling volatility. Anticipation is mounting ahead of the US inflation figures for September (scheduled for Wednesday), which are expected to rise due to energy price pressures. Investors will be looking for further clues as to the Fed’s next moves: at present – according to the CME Group’s FedWatch Tool – rates are expected to remain unchanged at the October meeting and to rise at the December meeting. All eyes are also on the start of the quarterly results season, with the major US banks (tomorrow) followed by European tech giant ASML Holding (Wednesday).
Banks remain under the spotlight on the Milan Stock Exchange on the day of the extraordinary board meeting of MPS (+1.2%), which will assess the next steps following the relaunch of Intesa Sanpaolo’s public takeover bid (+1%). Shares in the key players in the sector’s game of Risk are all up, led by BPER (+2.1%), whilst Unipol (+0.5%) and Generali (+1%) are also rising. Leading the market is Avio (+3.3%), followed by Stellantis (+2.2%), in a generally positive session for the sector following the EU-China agreement to limit imports of hybrid cars from Beijing to Europe. The Paris Motor Show also got underway today. Inwit continues to rise (+1.7%) following rumours of a possible delisting being considered by its major shareholders, Ardian and Oak, with speculation of a takeover bid for the remaining shares in the mobile phone tower company. Poste gained 0.8 per cent after Kepler upgraded its recommendation from ‘Hold’ to ‘Buy’, with a target price of €27.50, down from the previous €28. Tim slips to the bottom of the list (-1.15%), whilst Technoprobe narrows its losses (-0.3%).
In the currency markets, the euro has fallen below $1.12 once again, standing at exactly $1.177 (from $1.12 at the open and $1.1195 on Friday). The single currency is also trading at 177.28 yen (177 at the open and 177.26 on Friday), whilst the dollar/yen cross stands at 158.62 (from 158 and 157.59). On the energy front, oil prices rose by 1 per cent, with December Brent futures at $105.8 per barrel and November WTI futures at $92.8. Natural gas prices in Amsterdam rose by around 2 per cent to 83.3 euros per megawatt-hour.
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