Le European stock markets close sharply lower A session dominated by selling in government bonds, a renewed rise in oil prices, and a sharp correction in the technology sector. The weakness worsened in the afternoon with Wall Street's negative opening, where the Nasdaq was primarily impacted by gains on stocks related to artificial intelligence and semiconductors. The main issue, however, comes from bond marketUS Treasury yields have once again risen to levels not seen in nearly two decades, rekindling fears about the sustainability of US public finances, inflation and the possibility that rates will remain high for longer than expected. sales did not spare Europe, with a general rise in sovereign yields which has increased pressure on stock markets.
Making the picture even more fragile are the tensions in the Middle EastThe confrontation between the United States and Iran has not produced significant progress since the end of the truce and the Strait of Hormuz remains a major concern for investorsA Liberian-flagged cargo ship was hit off the coast of Oman, while Tehran issued new threats against transiting vessels.
Il oil reacted by rising againWTI rose above $85 a barrel during the session, while Brent crude again surpassed the $90 mark. This move fuels fears of a renewed surge in inflation just as central banks are evaluating their next rate moves.
Bonds under pressure, yields rising sharply in the US and Europe
The most evident tension of the day was concentrated in the bond market. In the United States the 30-year Treasury yield he went as far as 5,32 %, at the highest levels since 2007, while the tenth anniversary has reached about 4,74 %Shorter-term maturities are also rising, with the two-year bond above 4,2%.
The sell-off affected several sovereign markets simultaneously. In Germany, 30-year Bund yields rose to their highest levels since 2011, long-term French yields reached levels not seen since 2008, and the British market also remained under pressure.
In Italy it The spread between Italian government bonds and German Bunds closed at 83 basis points., up from the previous session. The yield on the Italian 10-year bond rose to 4,09 %, while that of the German Bund rises to 3,26%.
The words of the ECB's chief economist also fueled tensions. Philip Lane, according to which inflation of 3% remains very high compared to the Eurotower's 2% target. The statements reinforced the idea that Frankfurt may maintain a restrictive stance and consider further rate increases if price pressures persist.
Meanwhile, from the United States, the July industrial production rose by 0,2% on a monthly basis, slightly less than the +0,3% expected by the market, while manufacturing grew by 0,2%.
Europe closes in the red, Milan saves 53
The deterioration in the bond market and the weakness on Wall Street progressively weighed on European stock markets during the afternoon.
At Piazza Affari the The FTSE MIB closed down 1,06% at 53.019 points., still managing to narrowly defend the 53 point threshold. Frankfurt also performed poorly, -0,89%, while Paris lost 0,82%, Amsterdam 0,67%, and Madrid 0,26%. London stood out from the rest of the Old Continent and ended virtually unchanged, with a gain of 0,07%.
On Wall Street, at the time of the European closure, the picture remains negativeThe Nasdaq 100 lost 1,63%, the Nasdaq Composite 1,23%, and the S&P 500 0,58%, while the Dow Jones limited its decline to 0,24%. Technology and financial stocks, which are most sensitive to rising yields, were the ones weighing most heavily. Meta also fell, -2,63%, following the start of the child protection trial against it.
Stm plunges 7,57%, amid sales of Prysmian and the chip sector.
The hardest day is the day of semiconductors, overwhelmed by a new wave of sales as doubts return to the forefront over the valuations reached by artificial intelligence companies and the sustainability of the huge investment cycle in the sector.
At Piazza Affari Stm plunges 7,57% to 45,33 euros, the worst stock on the Ftse Mib. But all the main stocks in the sector are collapsing across Europe: Asml is losing 4,95%, Soitec is over 12%, Aixtron is over 8% and Infineon is around 7%. On the Milan stock exchange there are also strong sales for Prysmian, -4,88%, Buzzi 3,35%, Avio 3,25% e Fineco the 3,13%.
On the opposite front, Nexi gains 1,97% and closes at the top of the Ftse Mib. Also doing well Snam, up 1,26%, and Eni, which advances by 0,95% Thanks to the renewed strengthening of crude oil prices, A2A and Terna are up, while Enel closes just above par. The oil price rally is supporting the entire European energy sector, with purchases also seen in BP, TotalEnergies, and Shell.
Virtually unchanged Intesa Sanpaolo, which closed down 0,06%. According to a document filed with the SEC, at the end of June the bank held 5,66 million SpaceX shares (-2,19%), for a total value of approximately 966 million dollars, equal to approximately one-third of the institution's U.S. equity portfolio. After the stock's decline from its end-June price, the value of the stake would have fallen to approximately 809 million dollars.
Oil rises above 90, gold and silver retreat
On the commodity market crude oil returns to the forefrontThe failure of diplomatic attempts between Washington and Tehran and the new episodes in the Strait of Hormuz reinforce the fear that the circulation of ships could remain limited for a long time. During the day the Brent returns above $90 a barrel, while WTI pushed above $85 before paring some of its gains. European gas also remained buoyant, with prices in Amsterdam above 63 euros per megawatt-hour.
Precious metals, on the other hand, are moving in the opposite direction. Gold loses ground and falls to the $4.370 per ounce area, interrupting the recovery of previous sessions, while silver also suffers sales. On the currency market, exchange euro Dollar remains substantially stable around 1,16, while the dollar remains close to the 160 level against the yen.
