The winds of war are intensifying in Europe, with Moscow seeing "NATO effectively participating in a conflict with Russia," but the stock markets don't seem to be affected, quite the opposite. Eurozone markets closed the first session of the week with a strong gain, particularly Business Square, who after having flirted for a long time during the day with 43 thousand basis points, closed just above that psychological threshold, up 1,14%, thanks to buying in luxury, defense, and banking stocks. Paris also performed well (+0,92%) – despite Fitch's downgrade of its sovereign rating (from AA- to A+, with a stable outlook), boosted by big names and the fact that strong cosmetics and jewelry sales data in China contributed to the boost in fashion. Elsewhere in the continent, Amsterdam appreciated by 1,13%, followed by Madrid +0,55% and Frankfurt +0,26%, while outside the bloc, London was just below the surface, at -0,07%.
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Wall Street hits new highs ahead of the Fed and U.S.-China negotiations. Tesla and Google surge.
The climate is confirmed as positive also overseas and Wall Street is at new highs (with S&P 500 and Nasdaq) after the records of last week, at the opening of a crucial week for monetary policy, with meetings of the Fed, Bank of Canada, the Bank of England, and the Bank of Japan scheduled for the coming days. The spotlight is particularly on the US central bank, which is due to make a decision on Wednesday. The market has little doubt about a 25 basis point rate cut, while holding off on a more substantial 50-point cut, despite pressing calls from US President Donald Trump again today. Traders are currently pricing in nearly 70 basis points of easing by the end of 2025, according to data compiled by LSEG. A breath of fresh air is also being brought by news from the White House regarding the positive progress of trade negotiations between the United States and China, while a framework agreement on TikTok has also been reached. Trump is also reportedly ready to speak with Chinese President Xi Jinping on Friday.
Tesla is shining in stocks, up 6,64% after CEO Elon Musk bought shares worth around $1 billion. Alphabet (Google) is also stepping up its game. +3,7%, bringing the market capitalization to $3000 trillion for the first time, after Citi raised its price target (to $280 from $225). Nvidia, on the other hand, is in the red (-1,38%), accused by China of violating anti-monopoly regulations. Finally, the effervescent President of the United States believes that listed American companies should abandon quarterly reporting.
Oil prices on the rise
Oil prices are rising, reflecting the growing hostility between Europe and Russia, while the United States is pressuring its allies to impose tariffs on Beijing's purchases of Russian oil. Brent crude oil futures, November 2025, are currently trading at $67,68 a barrel (+1,03%), while Texas crude oil futures, October 2025, are hovering around $63,48, up 1,26%. Among commodities, gold is also appreciating: spot gold is up 0,46%, reaching $3659,79 an ounce. On the foreign exchange market, the dollar loses moderate ground, ahead of the monetary policy meeting. The euro sees a cross above 1,175 (+0,2%).
Milan Stock Exchange: Cucinelli, Leonardo, and Stm soar. Avio hits new highs.
The blue chips that led the way today on Piazza Affari are Cucinelli, +5,68%, Leonardo +3,68%, Stm +3,99%. Shares of the cashmere garments company moved in an overall strong luxury sector (Moncler +3,32%; Ferragamo +2,87%), but were further boosted by the initiation of coverage by JP Morgan with an "overweight" rating and a price target of 125 euros.
The Leonardo confirms his fitness, in a well-established defense sector (and its surrounding areas) and on the wings of a hypothetical satellite alliance with Airbus and Thales, to create an alternative to Musk's Starlink. This is an agreement that could materialize as early as this year.
Outside the main basket, Fincantieri (+2,75%) and Avio (+7,89%) stand out, the latter reaching new all-time highs following management's announcement last Friday—in a call with analysts—of a capital increase of up to €400 million and strong, stronger-than-expected expansion in the US defense sector. For this reason, Equita raised its target price on the stock from €25 to €37 per share, maintaining its "hold" recommendation.
The day smiled on the banks Starting with the big banks Intesa (up 2,54%) and Unicredit (up 1,26%), although the focus today was on Bper (up 1,84%) and Popolare di Sondrio (up 1,26%). The Valtellina-based bank appointed its new board of directors based on lists from Bper, which recently became the controlling shareholder with an 80,69% stake.
The biggest drops of the day Amplifon fell by 2,3%, Diasorin by 1,06%, Tenaris by 0,91%, and Interpump by 0,88%. Snam's decline, at 0,66%, may be due to press rumors that the closing of the purchase of a stake in German company Open Grid Europe, scheduled for the end of September, is likely to be postponed.
Spreads down
Italian paper also closed a positive session. The spread between BTPs and Bunds, both with a ten-year duration, fell to 81 basis points, with rates of 3,51% and 2,69% respectivelyFrench bonds pared their losses in the closing stages and, after having leveled out with Italian bonds, closed with a slightly lower yield, with a surge of pride. The 3,49-year OAT yield is quoted at 79%, and the spread with the Bund of the same maturity stands at XNUMX basis points.
