Stock market: High volatility across Europe; Milan breaks even, but oil and tech sectors weigh on the market
(Il Sole 24 Ore Radiocor) - Volatility soared on the European stock markets, which rallied in the latter part of the session – partly due to the sudden drop in oil prices – only to lose ground again and slip back into the red. Wall Street is leading the way, now struggling to regain ground following a series of positive quarterly results which are offsetting, at least in part, the pressures felt in the artificial intelligence sector (already shaken after the South Korean company Elice lost over 30 per cent overnight on its market debut). These sudden swings demonstrate that the markets remain under pressure at this stage, amid fears over inflation, bond yields and geopolitical tensions. A glimmer of hope has emerged from Qatar, which, according to local media, has put forward a proposal for mediation in the Middle East that takes into account the demands of both Washington and Tehran. This was enough to cool crude oil prices for a moment, with Brent falling to $107 (-2.3%) and WTI slowing to around $96, thereby narrowing spreads on government bonds and allowing banks to regain ground.
On the Milan Stock Exchange, the FTSE MIB managed a hard-fought break-even (-0.03%) at the close of trading, weighed down by oil and tech stocks. The worst performers were Saipem (-4.3%), Prysmian (-2.6%) and Technoprobe (-3%). Banks and insurers saw mixed performance: Banco BPM was down (-1.4%), whilst Unipol (+2.2%) was among the top performers on the final day of trading for the option rights relating to the capital increase. Enel rose by 2% following a positive report from Jefferies analysts. Outside the main index, Italian Sea plummeted (-15%) following binding bids.
On the foreign exchange market, the euro rose to 1.1233 dollars (from 1.1213 dollars at yesterday’s close) and stood at 177.65 yen (177.75). The cross-rate between the US dollar and the Japanese yen stood at 158.17 (158.51). Finally, gas prices halted their rise at 85.4 euros per MWh (-3 per cent).
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