Stock market: Milan (+1.3%) closes at a new record high amid hopes over the Strait of Hormuz
The tech sector is performing well. Oil prices are falling
(Il Sole 24 Ore Radiocor) - The apparent thaw in relations between the United States and Iran, which has reignited hopes of an agreement to reopen the Strait of Hormuz, has boosted European stock markets and triggered a further correction in oil prices. The FTSE MIB on the Milan Stock Exchange thus recorded a new closing high of 53,541 points (+1.26 per cent), after rising during the session to 53,613, and posted the best performance among European stock markets. US Treasury Secretary Scott Bessent said that the US is ‘in talks’ with Tehran and that ‘there is a possibility that an agreement could be reached today or tomorrow to reopen the Strait and move towards greater normalisation in this conflict’. Among the leading Milanese stocks, STMicroelectronics gained 3.6 per cent in a technology sector that was on the rise across Europe (the Stoxx sub-index was up 3.01 per cent), partly thanks to results from groups such as Palantir and Caterpillar, buoyed by demand for artificial intelligence-related solutions. There was buying interest in Avio (+4.66%) and Prysmian (+3.47%), with the latter seeing its share price rise in the wake of its acquisition of the US firm Atkore. Banks were generally up (Bper +2.14% and Banco Bpm +2.08%), despite fresh comments from League leader Matteo Salvini regarding a possible contribution to fund the cut in fuel excise duties. At the bottom of the FTSE MIB, however, Eni slipped (-1.88%) following the fall in crude oil prices: September WTI lost 4.31% to $76.88 per barrel, whilst October Brent fell by 3.83% to $80.56. Natural gas prices also fell, dropping by 3.2 per cent to €55.7 per megawatt-hour on the Amsterdam TTF platform. On the foreign exchange market, the euro/dollar exchange rate was little changed at 1.1518, up from 1.1507 at yesterday’s close. The single currency is also trading at 181.47 yen (up from 181.27), whilst the dollar/yen exchange rate stands at 157.51 (down from 157.54).
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