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Stock Market: Europe all in red with eyes on the Middle East. Tim shines in Milan, Stellantis still suffers

European stocks fall on fears of an escalation in the Middle East. PMI services indices also weigh. Rain of selling on the yen, oil prices soar

Stock Market: Europe all in red with eyes on the Middle East. Tim shines in Milan, Stellantis still suffers

After Hong Kong (-1,48%) Europe also falls. They are all the stock markets in red European countries weighed down by fears of an escalation in Middle East after the new attacks in Lebanon and the announcement by Israel that it is preparing new attacks in Iran. The various indices are also weighing further on the price lists SME services: the Eurozone's index fell to 51,4 points in September from 52,9 points in August, while Italy's index fell to 50,5 points from 51,4 in August.

The markets' attention is also on monetary policy. While waiting to understand what the ECB will decide, in Great Britain the governor Andrew Bailey told the Guardian that the Bank of England could become “a little more activist” on rate cuts if there is further good news on inflation. 

Stock Market: Europe all in red 

In the Old Continent the stock markets are continuing to decline, with the Stoxx 600 which marks -0,67%. The worst is Paris, down 0,8%, closely followed by Amsterdam (-0,65%) and Frankfurt (-0,6%). Madrid limits the damage and remains just above parity (-0,12%), while outside the European Union London is in contrast to the trend (+0,3%). 

In this context Milan gives up just over half a percentage point (-0,67%) to 33.451 basis points, moving away from the lows thanks to the excellent performance of Tim and the increases of part of the banking sector. Weighing instead are Stellantis, Saipem and luxury.

Tim shines in Milan, Stellantis still suffers

The star of the Milanese stock market is Team, which rose by 2,67% after theMinistry of Economy offer with Asterion for Sparkle. The non-binding offer values ​​Sparkle at approximately 700 million euros of enterprise value and is valid until October 15. If the board of directors gives the green light, the closing must take place within the first half of 2025. “The new offer – commented Intermonte – although slightly lower than the proposal presented last January and our valuation (at 770 million) has the advantage of removing the uncertainties related to the earn outs”, commented Intermonte analysts.

Instead, it's pitch black in the house stellantis which after Monday's collapse (-14,7%) today gives up a further 4,2%. Weighing in is Barclays' decision to cut the rating to "equal weight" from "overweight", with a target price of 12,5 from 23 euros, which is added to the profit warning issued three days ago and the bad news about registrations that arrived on Wednesday.

In deep red too Saipem (-4,69%) And stmicroelectronics (-2,59%). Luxury sales continue: Moncler (-2,44%), Brunello Cucinelli (-2,14%).

The banks are positive: Bper gains +0,74%, Unicredit rebounds and marks +0,62%, Bpm bank salt of 0,34%. Mediobanca gives up 0,63% after the Renewal of the consultation agreement between members until 2027.

Shop on Eni (+0,68%), which benefits from the rise in oil prices and which this morning announced that it has completed the aggregation of almost all of its exploration and production assets located in Great Britain to the assets of Ithaca Energy.

Oil prices soar, yen sell-off

Eyes also on the Petroleum, with Brent, after having exceeded 76 dollars a barrel yesterday and then fallen back to just above 74, today returns to growth, reaching 75,3 (+1,9%) and Wti rising by 2,2% to 71,67 dollars a barrel. Fluctuations linked to tensions in the Middle East, but also to uncertainties about the recovery of China, the world's leading importer of crude oil. 

On the currency market, rain of sales on yen after the Japanese Prime Minister's statements that the economy is not ready for further interest rate hikes, surprisingly frank statements that have pushed the yen lower: the dollar/yen is at 146,868 (after touching the lowest level in the last two months at 147,17 yen per dollar) while the euro/yen is at 161,78. exchange euro Dollar it is instead falling around 1,10.

Finally, on the bond, lo spread between BTPs and Bunds is stable at 133 basis points, while the yield on the benchmark 3,48-year BTP is rising to 3,44% from XNUMX% at the close the day before.

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