European stock markets close today little moved and in no particular order, divided between purchases in defense stocks and the weakness of luxury stocks, in an international context that leaves little room for imagination, while the UN General Assembly is still underway in New York. The session was dominated by caution, after the yesterday's Fed slowdown on the upcoming rate cuts.
Piazza Affari loses 0,13% and fell to 42.423 basis points, capped at opposite ends of the main index by Leonardo (+4,55%) and Stellantis (-3,49%). Frankfurt rose 0,18%, despite German business confidence, as measured by the Ifo index, falling to 87,7 points in September from 88,9 in August and against estimates of growth of 89,4 points. Small gains were recorded in London (+0,25%), Amsterdam +0,08%, and Madrid +0,19%, while Paris lost 0,57%.
Wall Street flat
Overseas Wall Street struggles to find direction In the early hours of trading, the day after comments from Federal Reserve Chairman Jerome Powell. The central banker appeared more cautious than expected about his next moves and spoke of "moderately restrictive" monetary policy following the recent rate cut, with the central bank needing to assess the health of the labor market as well as the path of inflation. Board members are more divided than ever on the correct stance, and this places even greater weight on the personal consumption expenditures index due to be released on Friday, as it is the Fed's preferred inflation indicator.
The sentiment is also influenced by the statements of the President of the United States Donald Trump, who has made a real U-turn on the conflict between Kiev and MoscowUkraine, with the support of the EU and NATO, he said, can reconquer all the territory occupied by Russia, which he called a "paper tiger." Meanwhile, the climate of violence is also rising within the United States, and today in Dallas, a sniper fired from a rooftop at the headquarters of an anti-immigration agency. At least two people are reported dead and one seriously injured, while the shooter took his own life. In stocks, Chinese company Alibaba, listed on the Nasdaq, is soaring, rising more than 8% after announcing new investments in artificial intelligence.
Dollar on the upswing
Powell's words are helping the dollar recover today, while the euro is suffering from declining German business confidence. The exchange rate between the greenback and the euro is currently 1,1739 (down 0,63% from yesterday's close). Among raw materials, gold is trading at a low level., after yesterday's rally and overnight profit-taking. Spot gold is trading at $3752,37 an ounce. Oil, on the other hand, is holding steady, with WTI and Brent futures trading up more than 1%, at $64,38 and $68,56 a barrel, respectively.
Piazza Affari holds firm with Leonardo and energy stocks. Mixed banks
Piazza Affari closed a session just below par, thanks to buying in Leonardo and, outside the main basket, in Fincantieri, up 4,99%. Energy stocks are also in the spotlight. Oil companies such as Eni are up 1,82%, although Saipem is down 2,08% following the Brazilian antitrust authority's request to halt its merger with Subsea7 and rumors of an interest in Impresa Pizzarotti, also in the running for WeBuild. Defensive stocks such as utilities are doing well starting from A2a +1,58%, Enel +1,22%, Hera +0,86%.
Banks are mixed, with the sector remaining nervous about the risk of new taxes. Economy Minister Giancarlo Giorgetti doesn't want to go on a "crusade," but believes banks should make a balanced contribution after the "stratospheric" profits of the last five years. Unicredit (+0,28%) and Banco BPM (+1,24%) stand out in the sector. Regarding the Piazza Meda bank and its possible merger with Credit Agricole, Giorgetti talks about the Golden Power"I have no political objections, but I have a law I must enforce. Just as I've enforced it for others, I'll enforce it for them. There's a law that applies to everyone."
Mediobanca, down 1,74% and Banca Monte Paschi, down 1,92%, are still in the red following the completion of their takeover bid. Equita Siena remains "Hold," with a target price of €8,2. Meanwhile, shareholder Francesco Gaetano Caltagirone is asking the ECB for authorization to exceed 10% of his stake, although voting rights exceeding 9,9% remain nullified. The worst blue chip of the day is Stellantis, which was impacted by news of layoffs at six European plants and the temporary halt in Panda and Tonale production at Pomigliano. Cucinelli suffered -2,97%, Moncler -2,55%, and Amplifon -2,25%.
Spreads up
Powell's caution isn't helping Italian bonds, which closed today in the red. The spread between 10-year Italian bonds (BTPs) and German government bonds of the same maturity rose to 85 basis points (+2,41%), and the yield on Italian bonds rose to 3,59%, compared to the German bond's stable 2,75%.
