Stock market: Europe weak at midday; Milan (-0.5 per cent) limits the fall thanks to a surge in Eni shares
Following the results, Kering (-13 per cent) and Volvo (-25 per cent) plummeted
(Il Sole 24 Ore Radiocor) - European stock markets are trading weakly at midday, as investors await the opening of Wall Street, which is expected to be relatively flat. Frankfurt is down 0.93 per cent, Paris 0.75 per cent, Amsterdam 0.19 per cent and Madrid 0.45 per cent. After a positive start, Milan has also weakened, falling by 0.56%, whilst 10-year BTPs are yielding 4.56% with the spread at around 123 points. France remains under close scrutiny, with ten-year yields above 5 per cent and the spread exceeding 170 basis points. Meanwhile, oil prices continue to rise: WTI gained 1.6% to reach $101, and Brent rose 1.17% to $114.49. The sharp rise in gas prices is also a cause for concern, with prices up 4.17 per cent to 93.8 euros per megawatt-hour.
On the Milan Stock Exchange, Eni shares are surging (+5.3 per cent), buoyed not only by the rise in crude oil prices but, above all, by better-than-expected third-quarter results and the announcement that the company will pay an extra dividend in December; furthermore, the share buyback target is set to be raised. The entire oil sector is performing well, with Saipem up 1.7 per cent and Tenaris up 2.8 per cent. The tech sector, however, is once again under pressure, with Technoprobe down 3.9 per cent and STMicroelectronics down 2.7 per cent. Banks are also weak, as investors await developments regarding the ‘Risiko’ scandal and with the countdown underway for the upcoming MPS shareholders’ meeting (-0.6%). Luxury shares are slipping: Moncler is down 1.8 per cent and Cucinelli 1.5 per cent, affected by Kering’s (-13 per cent) plunge in Paris, which yesterday published disappointing results, particularly for its flagship brand Gucci. Even Ferragamo, which had tried to buck the trend, is down by over 4 per cent. The puzzle centres mainly on China, a key market for the sector: whilst French groups LVMH, Kering and even Hermès recorded disappointing results in the Asia-Pacific region, brands such as Moncler, Cucinelli, Zegna and Prada, by contrast, posted strong results. Finally, in Paris, it is worth noting that EssilorLuxottica rose by 1.7 per cent, partly driven by an upgrade from S&P. L’Oréal also stood out (+5.3 per cent), buoyed by its financial results. Volvo, on the other hand, plummeted (-25 per cent) following a loss in the third quarter and the withdrawal of its guidance.
In the currency markets, the euro is trading at 1.1195 dollars (1.1201 yesterday) and 175.5 yen (176.11). The dollar-yen exchange rate has risen to 156.7 (157.20). Oil prices are rising (WTI up 1.2% to $100.72 per barrel, Brent up 1% to $114.36).
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