Bags at a standstill, yields up and commodity prices rising. This is the summary of what happened in the markets today, with investors continuing to watch what happens in Middle EastA few hours ago, US President Donald Trump again called on Iran to surrender, on the day the 60-day truce agreed with Tehran expires. In an exclusive interview with Fox NewsTrump confirmed the existence of a direct communication channel with the Islamic Revolutionary Guard Corps (IRGC), bypassing Iranian mediators and political leaders. "They should raise the white flag," the president said, reiterating that the goal remains to prevent Tehran from acquiring any form of nuclear weapon. Trump clarified that he has no deadline for the negotiations and denied that the midterm elections will influence his military strategy.
On the energy front, the Petroleum remains supported (Brent above 88 dollars, WTI at 82 dollars) and gas rises by half a point after a senior Iranian official declared to Reuters that Tehran could shift to an offensive, rather than defensive, policy if diplomacy with the United States fails, escalating tensions in the Strait of Hormuz and the region.
Europe in the red, European yields rise
In this context, the Ftse Eb closed the first session of the week with a narrow +0,01% at 53.586 points while all the other stock markets in the Old Continent are in the red. Madrid and Paris they give up 0,7% and 0,6% respectively, Frankfurt scores -0,28%, London is down 0,2%
Lo spread between BTPs and Bunds on the secondary market MTS closes up at 79 basis points, with the yield between btp benchmark ten-year rising to 4,01% and that on Waist same maturity at 3,02%. Rates on bonds are also rising passes Spanish, at 3,65%, and on Oat 10 French, at 4,06%.
Wall Street is below par, but tech stocks are rising. T-bond yields are also rising.
Wall Street is trading below par as investors gauge renewed confidence in artificial intelligence amid tensions in the Middle East. Dow Jones loses 0,3%, lo S & P 500 loses 0,13%, the Nasdaq rises instead by 0,18%
On the tech front, Bloomberg reported that the revenues of anthropic in the second quarter they would have exceeded 11,5 billion dollars, a sharp jump compared to a year earlier, fueling purchases on micron Technology (+ 5,3%), Sandisk (+10%). It also runs SpaceX (+6%), which brings it back to close to 150 dollars per share.
Last week, the S&P 500 hit a new all-time high, capping a strong earnings season, and the market continued to rise despite hostilities between the US and Iran and doubts about the artificial intelligence sector. Disappointing retail sales data and relatively low inflation have meanwhile dampened expectations of a Fed rate hike next month.
Meanwhile, prices are falling US Treasury securities, with investors focused on the minutes of the Federal Reserve's July meeting, due on Wednesday. After the Fed left rates unchanged at 3,50%-3,75% for the fifth consecutive meeting, traders have meanwhile shifted expectations for the next quarter-point hike to January, while bond investors remain wary of the massive US government debt and persistent fiscal tensions.
At this juncture, yields had already risen on Friday, after retail sales unexpectedly fell 0,6% last month, while the producer price index remained unchanged month-over-month in July. Among other maturities, the two-year yield rose to 4,177%, the five-year yield rose to 4,383%, and the 30-year yield fell to 5,285%.
STM and Prysmian support Milan
At Piazza Affari, tech-related stocks are supporting the list, following the good results of the sector in Asia: stmicroelectronics (+ 5%) followed by Prysmian (+2,4%). Positive too Finecobank (+2,08%), with Berenberg raising the target price to 28 euros from 27 and confirming the 'Buy' rating. Classic Ferrari for sale (+1,36%), benefiting from good results at vintage auctions.
Slides to the bottom of the Ftse Mib Stellantis (-4,1%) following rumors that the group is reviewing its technology strategy in South America under competitive pressure from Chinese manufacturers. Moncler (-3,8%) Fincantieri (-3,6%). The worst is nexi (-3,66%).
Weak Unicredit (-0,67%) despite, according to Bloomberg, German government open to discussing sale of 12,7% of Commerzbank (-0,3% in Frankfurt) controlled by Berlin in Piazza Gae Aulenti if the two institutions manage to establish a shared strategy.
Euro hits 2-year high against dollar
On the currency market, the reduction in expectations of a rate hike by the Fed is weakening the dollar with the euro-dollar exchange rate returning to its two-month high at 1,16 It is now worth 1,1589 (up from 1,1581 at Friday's close).
