Stock markets: Europe remains cautious during the week of Ferragosto. In Milan, St is in the spotlight

(Il Sole 24 Ore Radiocor) - A cautious start for the European stock markets in the first trading session of the week of Ferragosto, which are not being swept along by the strong performance of the Asian markets, with the NIKKEI 225 rising steadily. The week ahead is set to be in classic ‘August’ style: low trading volumes and few macroeconomic data releases. Investors’ attention remains focused on the Middle East, with uncertainties over the Strait of Hormuz showing no sign of abating. Iran insists that the United States must meet all its demands in order to reopen the Strait, whilst Tehran and Oman have entered the final stages of negotiations to agree on new shipping routes.

At a macro level, the focus will be on Wednesday’s data on US inflation for July, which takes on even greater significance following the disappointing labour market figures and which would suggest the Fed is likely to keep rates on hold. Experts expect a slowdown in both the headline and core inflation figures.

Buying on the Milan stock exchange is concentrated on tech and defence shares: at the top of the FTSE MIB StmicroelectronicsPrysmian and Avio . Bringing up the rear are Enel and Poste Italiane . The banks are in no particular order.

Whilst the market continues to weigh up the mixed signals coming out of the Middle East, crude oil prices have slowed their rise and are trading slightly lower. Brent for October is still trading above $83 a barrel (-0.14%), whilst WTI for September stands just below $78 (-0.3%). gas prices are also up, with prices in Amsterdam rising by almost three points to around 57 euros per megawatt-hour.

In the foreign exchange market, the euro/dollar exchange rate stood at 1.1555 (1.1556 at Friday’s close); the euro/yen exchange rate stood at 183.06 (182.25) and the dollar/yen at 158.41 (157.70). Bitcoin remained steady at around $65,165.