EU stock markets continue to rise in the wake of the mid-term elections; Amplifon surges in Milan. Gas prices fall

( Il Sole 24 Ore Radiocor) European stock markets continue to rise, still buoyed by enthusiasm over the Democrats’ landslide victory in the US mid-term elections. Fears of a political deadlock in the US have taken a back seat, whilst investors are betting that a Democrat-led Congress will lead to greater international détente, perhaps resulting in a resolution to ongoing conflicts. In this regard, anticipation is mounting for the important trilateral summit at the end of the month between US President Donald Trump, Chinese President Xi Jinping and Russian President Vladimir Putin, which is expected to lead to an agreement on Ukraine – although there are two ‘uninvited guests’, namely Ukraine itself and Europe.

Although the next two years are set to be marked by uncertainty, with a standoff between President Donald Trump – who has already announced that he will exercise his veto power – and the Democrat-led Parliament, the market is betting that the election result will foster a climate of greater international détente. ING analysts, however, point out that ‘investigations into President Trump, his family and members of his administration could intensify, now that the Democrats have greater powers’. Furthermore, it cannot be ruled out that impeachment proceedings may be initiated in the House of Representatives, opening up the possibility of a third attempt to impeach the President. Meanwhile, anticipation is mounting for the important trilateral summit at the end of the month between the US President, the Chinese President, Xi Jinping, and the Russian President, Vladimir Putin, which is expected to lead to an agreement on Ukraine, although there are two ‘uninvited guests’: Ukraine itself and Europe. Milan is up 0.24 per cent, Paris surges by over 1 per cent, boasting the best performance in Europe alongside Madrid. The Italian spread stands at 105 points.

A scenario that is the exact opposite of what is unfolding in Asia, where the Nikkei closed down 1.77 per cent due to a rotation in equity investments that has hit chipmakers, against a backdrop of concerns regarding investment in artificial intelligence and the possibility of stricter regulation by the United States following the Democrats’ victories in the mid-term elections.

Toyota has revised its full-year profit forecast upwards, thanks to strong demand for hybrid vehicles and the weakness of the yen, despite fierce competition from Chinese car manufacturers. For the current financial year, which ends on 31 March 2027, the company estimates a net profit of 3.57 trillion yen (22.6 billion dollars), up from its previous forecast of 3.25 trillion yen made in August. Although the forecast fell short of the expectations of analysts surveyed by Bloomberg, Toyota’s share price jumped by more than 15 per cent following the announcement. The company has also forecast an operating profit of 3.9 trillion yen, compared with the previous estimate of 3.4 trillion yen.

Seoul was down as much as 5.2 per cent. Samsung Electronics Co. and SK Hynix Inc., both South Korean firms, plummeted by more than 7 per cent as investors assessed the risk of stricter regulation of data centres. By contrast, the Chinese e-commerce giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd. both surged by at least 6 per cent, whilst Hong Kong’s Hang Seng Tech Index gained 5.1 per cent. With trading still underway, Shenzhen (+1.3%) and Mumbai (+1.9%) are also in positive territory. Shanghai is down slightly (-0.1%).