Stock exchanges, Europe closes positive with US quarterly reports, Milan (+0.7%) cold on Stellantis reorganisation

On the currency market, the euro lifted to $1.094 from $1.092 on the eve of the close. The weakness of the yen continued. On the energy front, oil prices fell, with the Brent December at around $79 a barrel and the November Wti at just under $76. Little movement in gas around EUR 40 per megawatt-hour. The spread rose slightly. The yield differential between the benchmark ten-year BTp (Isin IT0005560948) and the German Bund of the same duration stood at 129 basis points (up from 128 at the eve closing).

Yields rose slightly for the BTp bonds offered at auction by the Treasury. In detail, the seventh tranche of the three-year BTp maturing on 15/07/2027 was placed for anamount of 2 billion against applications for 3.407 billion. The bid-ask ratio was 1.70, while the gross yield, up 6 cents on the previous auction, stood at 2.68%. The eleventh tranche of the five-year off-the-run BTp maturing on 01/12/2027 for EUR 1.5 billion was also issued against requests for EUR 2.688 billion. The yield stood at 2.67%. The ninth tranche of the seven-year BTp maturing 15/07/2031 was also issued. The bond was placed for EUR 3.5 billion against demand of EUR 5.646 billion, with a bid-ask ratio of 1.61. The yield increased by 4 cents on last month's auction, stopping at 3.19%. Finally, the Treasury issued the sixth tranche of the 15-year BTp maturing 01/10/2039 for EUR 1.25 billion. Demand was 2.331 billion while the yield stood at 3.88 per cent. The diacseventh tranche of the 30-year BTp maturing 01/03/2048 was also placed for 1.25 billion against requests for 2.374 billion. The yield stood at 4.04%. The issue settlement date falls on 15 October.

A week of declines for European stock exchanges as they await the possible announcement of new stimuli for the Chinese economy, two weeks after the first tranche of measures, which could come from the press conference of the Chinese Ministry of Finance scheduled for Saturday. In the background remain the concerns related to the tensions in the Middle East and the macroeconomic picture: the market is increasingly betting on a quarter-point interest rate cut by the Fed in November. Thus Milan's FTSE Mib fell 1.2% and the Euro Stoxx 1.4%. Paris' Cac 40 (-2.7%) and Madrid's Ibex (-2.1%) did worse. Also down were London (-0.8%) and Frankfurt (-0.6%). Among the sectors, the weakness of cars weighed heavily, with the sector's Stoxx 600 registering a 6% drop for the week. Personal goods (-3.9%) and raw materials (-3.2%) also fell. By contrast, the energy sector (+4.3%) stood out, helped by oil price rises earlier in the week due to concerns over possible Israeli attacks on Iranian oil centres. Overall for the eighth week, Wti futures rose 10.5%, while Brent crude rose 1%; Amsterdam-traded natural gas contracts gained 4.2%. On equities at Piazza Affari, Bper shone in the eighth quarter, posting a gain of 13.9% thanks to the market's excellent reception of the 2027 business plan unveiled on Thursday. In its wake, Unipol, which holds a 20% stake in the bank, gained 8.8%. Italgas (+5.3%), also did well after the acquisition of 2i Rete Gas at the weekend and the presentation of the strategic plan to 2030, and oil companies (Eni +4.8% and Saipem +4.3%). Stellantis shares were down 18.5%. Erg (-7.2%), Nexi (-7%) and St. John's (-6.9%) were also weak.