Stock market: all eyes on the post-Fed period as investors await a rate rise; Milan leads the way (+0.8%)
(Il Sole 24 Ore Radiocor) - The double slowdown in oil prices and bond yields – which, whilst remaining at record levels, have halted their upward trend – is allowing European stock markets to regain ground, whilst the markets’ attention is already focused on the post-Fed period. As the US central bank is set to raise interest rates this evening – for the first time since the summer of 2023 – traders are wondering whether this 25-basis-point hike – at least that is the expectation – will be enough to keep inflation in check or whether, on the contrary, it will pave the way for a more restrictive phase. All eyes will therefore be on Chairman Kevin Warsh to see which path he decides to take.
Whilst awaiting the markets’ verdict, it is Piazza Affari that is stealing the limelight this time, closing at the top of the European indices with a gain of 0.8 per cent (bringing the FTSE MIB’s loss over the past month to 3 per cent). The top three performers were Prysmian (which rebounded to +3.4 per cent), Lottomatica (+2.8 per cent) and Italgas (+2.4 per cent). St is also performing well in the tech sector (+2%). The banks at the centre of the game are showing cautious gains. Starting with UniCredit (+0.4%), which is making progress in talks with the German government regarding the acquisition of Commerz. Intesa Sanpaolo rose by 0.6% following the Antitrust Authority’s decision to launch an investigation into the public takeover bid launched against MPS (-0.1%). Stellantis (-3.3%) finished at the bottom of the index, with Berenberg analysts having downgraded their rating and target price due to a slower-than-expected recovery in margins. Outside the main index, The Italian Sea surged (+12.3%) following several non-binding offers to support the yacht builder’s restructuring. Webuild rose 5.5% after Consob gave the green light to its takeover bid for Trevi.
On the foreign exchange market, the euro/dollar exchange rate stands at 1.1538 (down from 1.1540 at yesterday’s close). The single currency is also trading at 178.91 yen (down from 179.00), whilst the dollar/yen exchange rate stands at 155.08 (down from 155.12). On the energy front, oil prices are falling, partly due to a smaller-than-expected drop in US stocks. The October WTI futures contract fell by 4.2 per cent to $101.4 per barrel, whilst the November Brent contract slipped by 3.6 per cent to $104.7. Finally, gas prices are also falling, trading at €77.8 per MWh (-2.8 per cent).
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