Stock market: Europe up as the prospect of a Fed rate rise recedes; Nexi in the spotlight in Milan (+0.5%)

Anticipation ahead of the US producer price data

(Il Sole 24 Ore Radiocor) - European stock markets opened higher, buoyed by expectations that the Fed will adopt a more wait-and-see approach to interest rates following signs of a slowdown in US inflation, ‘although inflationary risks in the energy and semiconductor sectors remain’, said Vishnu Varathan of Mizuho Securities. In this regard, OPEC yesterday once again cut its forecast for global oil demand growth in 2026, partly due to the deadlock in negotiations over the reopening of the Strait of Hormuz and risks in the Red Sea. On the macroeconomic front, the US is due to release figures on jobless claims and – particularly in terms of inflation – the producer price index, both at 14:30 (Italian time).

So, following a strong session in Asia (Nikkei +1.2%, Kospi +3.6%), Milan is up 0.5% in early trading, returning to levels close to its all-time highs and the 54,000-point mark; in Europe, Paris is up 0.2% and Frankfurt is up 0.3%.

On the Milan Stock Exchange, Nexi is leading the way (+2.3%) amid a fresh round of rumours suggesting that CDP is set to increase its stake from 19.6% to 29.9% in the short term. The defence sector is also performing well, with Avio (+1.4%), Fincantieri (+1.3%) and Unipol (+1.1%). Saipem (+1.3%), meanwhile, is benefiting from an offshore contract in the Middle East worth around $1.8 billion, announced yesterday after the markets had closed. The luxury sector is attempting a rebound following the previous day’s losses, with Moncler (+0.8%) and Cucinelli (+0.8%). St (-0.8%) is lagging behind, in the wake of European tech shares.

In the commodities market, October-delivery Brent crude is down slightly at $88.5 per barrel (-0.5%), whilst WTI is trading at $82.8 (-0.5%). TTF gas in Amsterdam stood at €60 per MWh (-1.5%). Spot gold took a breather following its recent rally, trading at $4,374 per ounce (-0.7%).