European stock markets rise, with Milan nearing the 53,000 mark. Wall Street closes lower

‘This could in turn put pressure on the equity markets, particularly if yields continue to rise,’ comments Bret Kenwell, US Investment Analyst at eToro. Annual inflation continues to outpace growth in household incomes, weighing on purchasing power. “The challenge is becoming increasingly clear: inflation is still too high to be comfortable, and investors will be watching closely to see whether the Fed Chair, Kevin Warsh, will use his speech on Friday at Jackson Hole to outline how monetary policymakers intend to bring it back towards the Fed’s long-term target,” concludes Kenwell.

Indices edged lower at the close on Wall Street ahead of Nvidia’s results. The Dow Jones fell by 0.21 per cent to 53,464 points, the Nasdaq by 0.08 per cent to 26,130 points, whilst the S&P 500 closed unchanged at 7,677 points.

The focus will not only be on the figures for the last quarter but, above all, on the forward-looking guidance and on demand linked to AI, MPS analysts point out.

“Among the key factors to monitor will be the revenue guidance for the third quarter – and whether the optimistic target of $107–108 billion is exceeded – the timetable for the launch of Vera Rubin, a next-generation artificial intelligence platform, and an update on the business with China.”

But Meta Platforms is also attracting the market’s attention, with its share price rising after it agreed to pay a maximum of $16.68 billion as part of a settlement to end legal proceedings with several US states, which alleged that the company had designed Facebook and Instagram to be addictive to minors, misled consumers about their safety and improperly collected personal data from children using its platforms.

The settlement was reached during a federal trial in California concerning allegations brought by 29 states. Meta has also agreed to introduce changes for teenage users of Facebook and Instagram nationwide, including daily usage limits and night-time restrictions, according to court documents. The company, based in Menlo Park, California, denied any wrongdoing whilst accepting the settlement.

On the Milan stock exchange, oil stocks are being hit by the fall in crude oil prices and new proposals for taxation of so-called windfall profits: Eni is down 1 per cent, Snam 0.95 per cent and Tenaris 0.69 per cent. On the eve of the session, government representatives once again voiced support for the possibility of a contribution from energy groups as part of the forthcoming Budget Bill, but the Foreign Minister, Antonio Tajani, said he was ‘strongly opposed’ to the idea. Ferrari was also down (-1.56%), as was Inwit, which slipped to the bottom of the table at -1.68%.

On the other hand, A2A (+2.04 per cent) is benefiting from a positive assessment by analysts at Kepler Cheuvreux, who have confirmed their ‘buy’ recommendation and raised the target price to 3 euros (from 2.8 euros) on the basis of a scenario of gas prices higher than estimated and better profitability compared with competitors. Buying interest is also boosting Buzzi (+3.18%) and Fincantieri (+2.22%).

Mixed performance for technology shares, with all eyes on Nvidia’s results. St closed down 0.55 per cent, whilst Prysmian rose by 0.54 per cent. Looking more broadly at European stocks in the sector, in Amsterdam BeSemiconductor slipped to the bottom of the table, down 3.56 per cent, with selling also seen in ASM International (-0.68%), whilst in Frankfurt Infineon rose (+0.75%).

The fall in oil prices is slowing, with losses halved from earlier in the morning as prices recover, with WTI trading around $82 and Brent below $89 a barrel. 

Prices are being kept under pressure by hopes for talks between Iran and Oman, which have said they wish to create a “temporary shipping lane” in the Strait of Hormuz, by working together to clear it of mines. Furthermore, rumours are mounting about a resumption of talks between the United States and Iran: according to the New York Times, the US is reportedly preparing to send delegates to the Middle East, whilst other sources cite new attempts at mediation by Pakistan.

On the other hand, less encouraging signs are coming from US oil stocks, which have indeed risen over the past week, but by less than expected.

Natural gas is also helping to reduce the shortfalls; on the TTF platform in Amsterdam is trading at just under 66 euros per MWh.

The dollar is up slightly but without any major fluctuations following the US consumer price figures. After a slight dip the previous day, the greenback is regaining ground and pushing the euro to 1.165. 

Bitcoin’s rally has stalled as it hits resistance at $80,000 and returns to trading around $78,000. The day before, the cryptocurrency had briefly surpassed $81,000, before erasing its gains as profit-taking set in following its biggest weekly rise in the last three years.

The spread between BTp and Bund bonds closed slightly higher. At the close of trading, the yield spread between the benchmark 10-year BTp and its German counterpart stood at 82 basis points, one point higher than Tuesday’s close. There was a more pronounced rise in the yield on the benchmark 10-year BTp, which closed at 4.04 per cent, up from 4.01 per cent in the previous session.

Mercati, per saperne di più

I podcast con i dati e le analisi

Cosa sta accadendo alle Borse, qual è stato il fatto chiave del giorno? Appuntamento quotidiano con la redazione Finanza e Risparmio che cura il podcast quotidiano “Market Mover”. Ascolta il podcast

Borsa in video

La redazione di Radiocor cura ogni giorno - dal lunedì al venerdì - pIù video al giorno (metà seduta, borsa in un minuto, chiusura borse europee) con tutti i dati fondamentali della giornata della Borsa di Milano e un’analisi dei titoli in maggiore evidenza. Guarda i video

Le notizie per approfondire

Gli approfondimenti delle notizie di Finanza e Risparmio sono l’elemento distintivo di Mercati+, la sezione premium del Sole 24 Ore. Qui per scoprire come funziona e i servizi che offre.
Per gli aggiornamenti dei dati delle Borse ecco la sezione Mercati 
qui i link per consultare direttamente i prezzi di oro, petrolio, spread e cambio €/$
mentre per le notizie in tempo reale c’è il rullo di Radiocor.
Infine, ecco le nostre newsletter tra cui “Market Mover”