Stock market: Tech rally and fall in crude oil prices buoy Europe; Prysmian shines in Milan (+0.6%)
Brent falls below $90, whilst bitcoin pulls back from its highs
(Il Sole 24 Ore Radiocor) - A resurgence in tech buying and falling oil prices – with Brent slipping below $90 – are fuelling a sense of optimism in the markets. As a result, European stock markets are trading well up halfway through the session, with Frankfurt (+0.87 per cent) and Milan (+0.6 per cent) posting the strongest gains. Paris (+0.45 per cent) and Madrid (+0.37 per cent) follow closely behind, whilst Amsterdam (+0.06 per cent) and London (+0.16 per cent) lag slightly behind. Meanwhile, Wall Street is set for a rebound at the open following the previous day’s falls.
Initial fears regarding the US’s plan to exert economic pressure on Tehran have given way to relief: the announcements on sanctions by Treasury Secretary Scott Bessent were less severe than expected. Indeed, according to Rystad Energy, they have proved to be more “an extension of the existing sanctions regime than a fundamentally new economic weapon”. Furthermore, according to Saxo Bank, the shift of the conflict to the economic arena is a far more preferable scenario than a further military escalation, which could put additional pressure on oil supplies. It is precisely in light of this that tensions in the crude oil market have eased. At present, Brent is down 3.02 per cent at $89.41 per barrel, whilst WTI is down 3.12 per cent at $82.36. These are levels not seen for either benchmark since 17 August. Natural gas prices in Amsterdam are also down to €66.4 per megawatt-hour (-2.8 per cent).
Adding to the positive sentiment was the rebound in tech shares, following the wave of sell-offs that swept through Wall Street yesterday and the Asian markets in the early hours of today’s trading session. The countdown has now begun for the quarterly results, due tomorrow, from chip giant Nvidia (+1.2% on the market), which will be a crucial test of the resilience and prospects of shares linked to AI development. Meanwhile, optimism regarding the sector is prevailing on European markets today. On the Milan Stock Exchange, Prysmian (+4.08 per cent) and St (+1.25 per cent) are rising. Tenaris (+2.45%) and Fincantieri (+1.9%) are also performing well, whilst utilities are trading cautiously, led by Hera (+0.57%) and A2A (+0.4%). The European Union has ruled that any taxation of energy companies’ windfall profits falls within the remit of Member States, which may act in accordance with national legislation. Luxury stocks are also weak, with Ferrari (-1.7%), Moncler (-1.3 per cent) and Cucinelli (-0.65 per cent). As for the sector, investors are also assessing the implications of Leonardo Maria Del Vecchio’s departure from Essilux (-0.68 per cent in Paris).
The banking sector remains in the spotlight, with MPS (+1%) at the centre of Intesa’s (+1%) offensive, alongside the “target” stocks Banca Generali (+1.36%) and Banco BPM (+1.17%). This afternoon, the board of directors at Piazza Meda is due to consider Monte’s offer.
