Stock exchanges, Nasdaq does well on Wall Street with OpenAI-Amd deal. Paris in the red, Milan closes -0.2

(Il Sole 24 Ore Radiocor) - A mixed close for the European stock markets on the day of the fall of Sebastien Lecornu's 'lightning' French government. The Parisian list (-1.36%) pulled on the handbrake, losing more than two percentage points during the session, while Milan (-0.26%) contained its losses like the rest of the main continental indices.

Appointed last month, after the fall of the Bayrou government, Prime Minister Lecornu had only announced the composition of his new government on Sunday evening, but after a few hours he placed his mandate in the hands of President Emmanuel Macron. From many quarters it was feared that the new executive would be short-lived, falling over the manoeuvre: the opposition did not like the fact that in the executive there were many ministers from the previous government, which was challenged at the beginning of September. The political situation weighed above all on the securities of transalpine credit institutions, which were affected by the devaluation of government bonds, in which they held substantial shares: Bnp Paribas losing 3.21%, Credit Agricole 3.43% and Société Generale 4.23%. These performances dragged down the entire Stoxx sub-index of the European sector, which dropped 0.85%, and also weighed to some extent on the continental competitors. "With the expiry of the 2026 budget approaching," RBC's experts finally point out, "it is likely to be extended under a special provision, leaving the deficit above 5% of GDP and casting doubts on France's fiscal prospects. This should keep the Oat spreads elevated against peer bonds until the market has more clarity on deficit reduction'.

Wall Street closed mixed, with the Dow Jones giving up 0.11% to 46,694.97 points, while the S&P 500 gained 0.36% to 6,740.18 points and the Nasdaq 0.71% to 22,941.67 points. Meanwhile, the US entered the second week of shutdown, the paralysis of government activities following the failure of Congress to agree on raising the debt ceiling. The Nasdaq gained ground as Amd (+30%) rallied, following its agreement with OpenAI to supply chips for artificial intelligence. The multi-year deal is estimated to bring tens of billions of dollars in annual revenues to the US multinational and would give the ChatGpt creator the option to buy up to a 10% stake in Advanced Micro Devices (Amd). The deal envisages the use of hundreds of thousands of Amd's AI chips, or graphics processing units (Gpu), with a power output equivalent to six gigawatts, over several years starting in the second half of 2026. The S&P 500 also rose, while the Dow Jones lagged behind.

French government bond yields rose and spreads widened after the resignation of newly appointed Prime Minister Lecornu. The outperformance of OaTs compared to the same maturities issued in the Eurozone has contracted the spread by levelling out the gap with the Italian ten-year BTp: at the close, the two bonds were paired at 3.57%. On the 2-year and 5-year maturities, Italian bonds yielded less than French ones: 2.23 and 2.81 per cent, respectively, against 2.25 and 2.84 per cent. At the end of the session, the yield differential between the benchmark ten-year BTp and the German Bund of the same duration stood at 85 points, one point higher than last Friday's closing level.

Among the main Milanese stocks, Stellantis, which may increase investments in the US also to counter the tariffs effect. Oil stocks did well, with crude oil prices buoyed by the expected lower-than-expected production increase by Opec+ countries in November. Tenaris rose, as did Saipem and Eni . At the bottom of the list, down 1.6 per cent, Azimut and Ferrari. Banks closed with contrasts, penalised by French institutions, which in turn were down as they held French government bonds that were depreciating with the new government crisis. Mediobanca ended higher while Banca Mps loses share, asIntesa Sanpaolo andUnicredit . HighlightsBanca Pop Er and Banca Pop Sondr . Sale Banco Bpm , while the market is wondering about the various strategic deals available, starting from an aggregation with the Credit Agricole or with the new Mps-Mediobanca pole.