Stock market: the tail end of the ‘Risiko’ rally propels Milan (+2.7 per cent) above 51,000 points; BPM up 10.7 per cent
(Il Sole 24 Ore Radiocor) - The easing of tensions between the US and Iran, the reversal in oil prices and the rebound in tech shares – made all the more substantial by the fact that it occurred despite Nvidia’s slump – have given European stock markets some breathing space, with all of them closing with gains of between 1 per cent and 2 per cent. But leading the pack by a clear margin is the Milan Stock Exchange, which has been buoyed by the excitement generated by the banking sector’s upheaval: from Banco Bpm’s surge (+10.7%) following the proposed merger with Agricole, UniCredit’s better-than-expected quarterly results (+6.3 per cent) and Consob’s green light for Intesa Sanpaolo’s (+2.9 per cent) takeover bid for MPS (+2.2 per cent). A trio of factors that saw the FTSE MIB once again breach the symbolic 51,000-point threshold, with a 2.7 per cent gain at the close of trading (its highest level since late September). Helping to drive the rally were expectations of a possible de-escalation between Washington and Tehran, whilst the markets are following the spy saga surrounding the relationship between Nvidia’s CEO, Jensen Huang, and a manager who, according to US intelligence, is allegedly a Chinese spy (so much so that the chip giant’s share price fell by 4 per cent).
On the Milan stock exchange, there was also buying interest in Avio (+7.7 per cent), Prysmian (+5.9 per cent) and St (+5.3 per cent), which are part of the technology sector’s recovery, alongside Leonardo (+4.9 per cent) and Fincantieri (+3.9 per cent). At the bottom of the table, among the few in the red were Moncler (-1.3 per cent) and Stellantis (-1.6 per cent), with oil companies losing ground in the wake of falling crude oil prices. Outside the main index, Risanamento plummeted (-22.7%) after the deal between Lendlease and Bizzi over Santa Giulia fell through.
In the currency markets, the euro strengthened further to 1.1204 dollars (from 1.1148 at Friday’s close), whilst the euro/yen is trading at 177.03 and the dollar/yen has fallen below 158. Gas prices in Amsterdam are falling again, down 4.3% to 81.9 euros per MWh. On the energy front, oil prices are extending their losses after Khamenei signalled a willingness to end the war with the US: Brent futures, fresh from a 16 per cent weekly fall (the sharpest since the start of the Covid pandemic), are down 4.1 per cent at $94.3 per barrel, whilst WTI futures stand at $87.9 (-3.3 per cent).
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