Stock markets: Europe sees a cautious rise. Oil settles at $76

(Il Sole 24 Ore Radiocor) - The European stock markets are trading cautiously and hoping for a continuation of negotiations between the United States and Iran, despite the tit-for-tat attacks recorded in recent days in the Middle East. According to some sources, the White House is preparing for a ‘prolonged but controlled escalation’ with Tehran, rather than a full-scale conflict. Aside from geopolitics, investors’ attention is focused on the imminent start of the quarterly results season. Next week, the major US banks will announce their results, whilst the spotlight will subsequently shift to the hyperscalers and companies most exposed to the artificial intelligence sector. The tech sector also remains under the microscope following the recent announcement by Micron, which will invest over $250 billion by 2035 to meet the growing demand for memory chips used in artificial intelligence. The group has also announced investments of up to $3 billion to strengthen the US semiconductor supply chain.

Against this backdrop, the FTSE MIB in Milan is edging cautiously higher, driven by financials and industrial shares. The IBEX 35 is also performing well, whilst other European markets remain close to parity. Wall Street, on the other hand, is heading for a flat opening. Meanwhile, anticipation is building today for the US debut of SK Hynix shares. The South Korean group, already listed on the Kospi, closed today’s Asian trading session down 0.27%.

 On the Milan Stock Exchange, industrial shares are leading the way, such as Stellantis and Buzzi. Banking shares remain firmly on the rise: all the major banks are up, starting with Mediobanca and Intesa Sanpaolo. A report by Deutsche Bank is also helping to bolster the sector; according to the report, the upcoming quarterly results season will confirm the solidity of Italian banks. Among the best performers on the market, Amplifon and Nexi. Also worth watching is Stmicroelectronics, which is currently underperforming but could continue its recent recovery, buoyed by renewed enthusiasm for the semiconductor sector and the positive impact of SK Hynix’s US market debut. Bringing up the rear, amongst others, are Leonardo and Diasorin.

Oil prices have remained stable following the previous day’s fall: WTI is trading at around 72 dollars a barrel, whilst Brent is hovering around 76 dollars. Natural gas remains under scrutiny against a backdrop of persistent geopolitical tensions, but is holding steady at around 50 euros per megawatt-hour in Amsterdam for the August TTF contract. On the currency market, theeuro is trading at around $1.143 (compared with $1.1433 at the previous close). The yield spread between the benchmark 10-year BTP and the German Bund of the same maturity stood at 74 basis points, down from 75 the previous day. The yield on the benchmark 10-year BTP was down slightly.