EU stock markets are sluggish amid renewed tensions in Iran; oil prices surge. St slips
US strikes in Iran have pushed the price of crude oil above $79, fuelling fears of inflation and further monetary tightening. The latest wave of sell-offs in Asian tech stocks is also weighing on European chip shares
Key points
Le ultime da Radiocor
Borse Cina: Shanghai perde il 2,06%, pesano rischi geopolitici
***Rheinmetall: si aggiudica contratto da quasi 1 mld con Esercito britannico
Borsa: Europa cauta in avvio, Milano stabile grazie a sostegno Eni e Fineco
(Il Sole 24 Ore Radiocor) - European stock markets are trading lower, with all eyes on the Middle East. Geopolitical tensions have returned to the forefront following the intensification of US attacks on Iranian targets and Tehran’s subsequent response against American bases in the Middle East. Traffic through the Strait of Hormuz has been severely reduced and oil prices are rising. Investors also remain cautious ahead of the quarterly results season for major US banks, due in the coming days.
In this context, the FTSE MIB in Milan is weak, as are the other stock markets across Europe.
In Milan, oil stocks rise whilst chip stocks fall
On the Milan Stock Exchange, energy sector shares are surging, buoyed by the spike in crude oil prices: Eni is leading the gains, closely followed by Stellantis . The spotlight is also on Stellantis , which has released its estimates for second-quarter consolidated global deliveries, forecast to rise by 10 per cent, with growth limited to 5 per cent in Europe and a surge of 38 per cent in North America. Chip stocks are weak following the sell-off that swept through the Asian tech sector: Stmicroelectronics and Prysmian – linked to the sector due to its role in electrification and data centres – are in fact slipping to the bottom of the FTSE MIB. Finally, the market’s attention remains focused on the banking sector and, in particular, on Banca Monte Paschi Siena . The chief executive, Luigi Lovaglio, stated that the Sienese bank’s potential exceeds what is currently reflected in the share price, adding that the management has a duty to also consider any alternative offers (to that of Intesa Sanpaolo) in the interests of the bank and its shareholders. Fineco rises following rumours of potential interest from Unicredit .
Euro/dollar at 1.14. Oil prices rise
On the foreign exchange market, the euro remains at around 1.14 dollars (1.1432 at Friday’s close). Bitcoin has fallen below $63,000. On the energy front, renewed tensions in the Middle East are driving up oil prices. WTI is thus approaching $75 a barrel, whilst Brent is just below the $80 mark. Gas prices are also on the rise. There is a slight upward trend in the spread between BTPs and Bunds is also on a slight upward trend. The yield spread between the benchmark 10-year BTP and the German Bund of the same maturity stood at 75 points, up from 74 at the last close. The yield on the benchmark 10-year BTP is also on the rise
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Asia in the red, Nikkei down 2 per cent and Kospi plummets 9 per cent
The South Korean stock index Kospi plummeted by around 9 per cent at the close , with technology companies facing a fresh wave of selling fuelled by concerns over investment in artificial intelligence (AI). The memory chip giant SK hynix, for example, saw its share price plummet by almost 10 per cent during the trading session, despite the fact that on Friday, its first day of trading on the New York Stock Exchange, the share price had surged by 12.76 per cent. The Tokyo Stock Exchange also closed sharply lower: the Nikkei index fell by 1.92 per cent to 67,242.73 points, dragged down by semiconductor stocks, notably Advantest and Tokyo Electron.
