As concerns flare up for the war theaters, after theIran launched about two hundred ballistic missiles on Israel yesterday, I am defense titles or rather, those of the companies that produce weapons to benefit from it in the hope of the arrival of new contracts. The energetic linked to the rise in oil prices.
Iran has declared that its attack is over, barring further provocations, but Israel, fully supported by the United States, has promised a response. Already yesterday on Wall Street, despite an overall negative session, many defense stocks jumped: Northrop Grumman it managed to earn 4%, Lockheed Martin (+4%) and Bae System (+3%)
Today the sector stocks in Europe are moving with the same trend. The best is Leonardo rising by 4,17% e Fincantieri rises by 2,98%. But also the German Rheinmetall, the Swedish Saab, Sistemi Bae, Talete and Dassault Aviation are gaining between 2 and 3%.indicator European aerospace and defense stock Sxparo rose nearly 1%.
Energy sector also growing. Opec+ meeting today
Also Energy-related stocks are making gains on the back of the rally oil price. The sector index gained 2,4% and recorded its best session in more than five months. Oil prices rose on fears that direct involvement of OPEC member Iran could lead to disruptions in oil supplies. WTI came close to $72 a barrel and then retraced slightly to $71 a barrel, up 1,7% after yesterday's 2,4% rally. Brent crude futures also rose sharply, gaining 1,5% to $74,66 a barrel, extending yesterday's 2,5% increase and now trading around 1,5%, with Brent rising from $74 to $75 a barrel and WTI above $71.
According to Websim analysts, the rebound that started from the lows of the year is strengthening. A first sign of rebalancing will be visible with the return above 77/74 dollars per barrel. But signs of a restart of the uptrend will only come with the break of the psychological threshold of 80-77 dollars. In the opposite direction, the 75/70 dollar area has repeatedly confirmed itself as a discriminating threshold of strong value, capable of starting a reaction. In a sudden change of scenario and possible stop loss, experts see the drop below 70-64 dollars.
Later in the afternoon OPEC+ (Russia is also in it) should meet to analyze the market conditions, but no major changes in production policies are expected, even if some expected in recent days the decision to increase supply to compensate for the drop in global demand. But the worsening of tensions in the Middle East could make member countries change their minds.