The mid-week news on the financial markets is the fall in oil prices: today Brent depreciates by almost 3% after several consecutive sessions of gains, returning to $105 a barrel. WTI Crude Oil fell 3,5%, remaining just above $100 a barrel. The reason is easy to explain: US Energy Secretary Chris Wright stated that Saudi Arabia's damaged East-West oil pipeline is expected to resume operations Within days, calling the crude supply disruption only temporary. While the plant remains out of service, Saudi Arabia has increased crude exports through the Strait of Hormuz, with U.S. military assistance.
Oil prices remain above $100 as US inventories decline.
Meanwhile, US government data showed that Crude oil inventories fell by 640.000 barrels, reaching 423,4 million barrels in the week ending September 11, although the decline was less than analysts' expectations. Natural gas remains very high and close to its end-2022 highs, but today it has fallen below the 80 euro mark, around 78 euros per megawatt-hour: the well-known military tensions have made the Strait of Hormuz is largely inaccessible to merchant traffic, severely limiting LNG export flows from Qatar and reducing direct supplies to Europe. Gold and silver are rising: the former is trying to return to $4.400 an ounce, the latter is just below $65.
Government bonds still under pressure, awaiting Fed rates
Government bond yields continue to be under pressure, just hours after the Federal Reserve's decision on interest rates: even today The US 10-year T-Bond remains at its highest level since 2007, on the 5% threshold. Investors are worried about the cost of money, which is destined to increase: the market is pricing in about a 93% probability of a 25 basis point increase today, which will make your nose turn up to President Donald Trump who, a few weeks before the midterm elections, would have instead pushed for a cut or at most to leave the reference rates unchanged. The BTP-Bund spread is taking a breather today., which however remains close to 90 basis points, with the yield on the 10-year BTP still very high, above 4,3%.
Stocks are up. SpaceX soars on the Nasdaq ahead of the Starship launch.
In this scenario, the main Western stock markets still enjoyed a positive session. The Dow Jones is currently unsettled, while tech markets are pushing the Nasdaq up 1%. Europe closed with Milan up 0,8%, Frankfurt up 0,5%, Paris up 0,6%, and London up 0,3%. The dollar strengthened against the euro, pushing the exchange rate below 1,154. SpaceX is among the most traded stocks on the Nasdaq, up 6,5%., following the announcement of Starship's next orbital flight, scheduled for Tuesday, September 22. The market is reacting positively because it will be the first test in which Starship's upper stage will attempt a stable orbit, also involving the release of 26 Starlink V3 satellites. Nvidia also did well +2% and Intel +5%.
Netflix still in the red, Bitcoin drops to $76.000
The best stock in the Top-100 basket is LumentumThe AI company is up 7% after being hit hard in the previous days, along with Coherent and other optical stocks, due to fears that a slowdown in AI investment could dampen demand. Axon is recovering slightly, up 3,5% after yesterday's plunge. The worst performing tech stock is Diamondback Energy, down 9%. Netflix continues to lose, while traditional majors are little changed. Bitcoin moves away from $80.000 again, falling to $76.000 today.
Milan nears 52.000 points, Stellantis drops more than 3%.
Piazza Affari is the best performing stock market in Europe, just shy of 52.000 points. The top performing stocks on Wednesday, September 16, are Prysmian +3,4%, Lottomatica +2,76%, and Italgas +2,4%. Stellantis -3,3% on the day the new Lancia Gamma is launched, which will relaunch production at the Italian plant in Melfi. Emanuele Cappellano, head of Europe at Stellantis, also said that "at Mirafiori, what's happening is that this year we'll have doubled production compared to last year." Very few other stocks were down, including MPS -0,14%. STM +2%, following the American tech market. Banks: Unicredit +0,4%, Intesa Sanpaolo +0,6%, Banco Bpm +0,4%.
