European stock markets mixed, Wall Street is buoyant and gold is at new highsThis is the trend of today's financial day, bizarre yet ordinary these days, in which investors find incentives to continue taking risks thanks to quarterly reports and individual stories, but feel the need to protect themselves with the ultimate safe haven, also in view of further monetary easing in the United States.
At the close in Europe, Paris stands out, +1,99%, in strong recovery in the hope that the new government will hold, thanks also to the decision by Prime Minister Sébastien Lecornu to suspend the pension reform until the 2027 elections. LVMH's leap is giving verve to the French stock market (+13,43%), after a strong quarter that boosted the luxury sector across the continent. Moncler (+7,77%) and other luxury stocks also performed strongly, but the FTSE MIB lost 0,4% and slipped below 4,2 basis points due to the sell-off in financial stocks, and Leonardo (-42%), still seeing gains in the new winds of calm.
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London is negative at -0,35%, disappointed by Bank of England Governor Andrew Bailey, who sees persistent inflation risks in the face of weakening employment, thus suggesting that the timing of future monetary policy moves remains uncertain. Frankfurt falls 0,26%Madrid is flat, Amsterdam rises +0,61%.
Wall Street buoyant with quarterly earnings and Powell
At the end of the American morning Wall Street slows down, but still trades in progress (DJ +0,29%, S&P 500 +0,58%, Nasdaq +0,79%), putting renewed trade damage with China on standby. To encourage purchases are banks' quarterly results beyond expectations (Bofa, after Goldman Sachs, Wells Fargo, Morgan Stanley, JP Morgan), while on the chip front, the Asml accounts are giving a boost.
The stock markets also welcomed yesterday's words from the Fed chairman, who opened up the possibility of further rate cuts and also on the possible end of quantitative tightening. According to LSEG data, markets are currently expecting a quarter-point cut at the FOMC meeting on October 28-29 and another at the next Fed meeting in December, followed by three more cuts next year.
Gold in Orbit
Gold is still the star performer today, reviving its highs and briefly surpassing $4200 an ounce. This is an overall positive trend for Rome, given that Italy, as Reuters points out, has the third-largest national reserves of bullion in the world, after the United States and Germany. The silver rally also restarts, which is currently gaining about 2% at a price of $51,605 an ounce.
On the contrary, oil remains weak. Texas crude oil is trading at $58,60 a barrel. Brent crude is at $62,22, with both futures trading slightly lower. Meanwhile, the United States, through Treasury Secretary Scott Bessent, has declared itself ready to impose tariffs on China for its purchases of Russian crude, but is asking its European allies to participate in this action.
“It is China's purchase of Russian oil that fuels Russia's war machine. China buys 60% of Russian energy"It buys 90% of Iranian energy," he said. On the currency market, the euro is gaining ground against the dollar, with the greenback held back by Powell's comments. The single currency is currently trading at 1,1624 against the dollar (+0,14%).
Stellantis shines with US investments in the Milan Stock Exchange.
The top three positions on the Milan Stock Exchange today were occupied by Moncler, Stellantis +3,21%, and Interpump +2,97%. Fashion is well-matched on a continental level And it's also celebrating in Milan with Cucinelli +1,85%, Aeffe +5,34%, and Ferragamo +7,79%. The automotive sector is also making a strong recovery: Stellantis is being rewarded for announcing a $13 billion investment plan over the next four years to grow its operations in the United States and increase production volumes by 50%; Ferrari, +2,89%, rebounds after a difficult period.
The biggest decline of the day was in Nexi, down 5,45%, which Exane BNP Paribas downgraded to 'neutral' from 'outperform', with a target price of 5,3 euros from 6,6 euros previously. Defense stocks are in deep red amid the ceasefire in Gaza. In addition to Leonardo, Fincantieri is down sharply, down 7,66%. Among the best-selling blue chips are banksPopolare di Sondrio -3,11%, Bper -3,04%, Banco Bpm -2,8%. Mediobanca fell 2,68%, also penalized by Fitch Ratings, which cut its Long-Term Issuer Default Rating to 'BBB-' from 'BBB', with the outlook remaining stable. Its parent company, MPS, followed suit, losing 2,24%.
Spreads down
Eurozone government bonds are benefiting from the improving political climate in France. The 10-year BTP-Bund spread narrowed to 81 basis points, with yields falling to 3,37% and 2,56%, respectively. Oat celebrates with greater conviction and distances itself somewhat from Italian paper, narrowing the spread with the Bund to 77 basis points. The 10-year OAT yield has dropped to 3,33%.
