European stock markets in the red due to interest rate risk and Trump, Milan -0.6% due to utilities

This live broadcast closed at 6pm on Tuesday. Here is the live news from Wednesday 23 October.

The European stock exchanges they closed in the red, with Milan closing trading with a drop of 0.64%, still managing to halve the losses compared to the start. Negative sign also for Frankfurt (-0.13%), Madrid (-0.07%) e Paris (-0.01%). Investors were concerned by statements from some Fed members who dampened enthusiasm for future rate cuts, predicting they would be “modest” and “less aggressive.” Furthermore, there is growing anxiety about the inflationary effects potentially resulting from a possible victory of Trump in the American elections.

At Piazza Affari, Nexi ranks first with an increase of 2.45%, supported by the leap of Worldline in Paris (+6.3%). St closes with an increase of 1.79%, thanks to the good performance of the tech sector and the positive results of the German giant Sap (+2.4%). Saipem also grew (+1.79%) in view of the presentation of its quarterly accounts, e Tenaris (+1.16%), benefiting from the rise in oil prices. However, the price list is burdened by the decline in utilities, with Erg in descent of 3.74% And A2A of 2.6%, influenced by a slowdown in the decline in rates globally.

Stock market at 12: Piazza Affari down with banks and utilities, Piaggio slips to -2.9% after Equita estimates

Except Frankfurt, that advances 0.29%, the main European stock markets remain in negative territory. Paris loses it 0.16%, London retreat from 0.43%, And Milan goes down 0.42%, settling at 34,809 points at 12, with banks and utilities under pressure.

ECB Governing Council member Jose Luis Escriva told the Spanish newspaper Expansion that there were not yet enough signs of significant changes in Eurozone inflation to justify changes in the monetary policy of the ECBconfirming a flexible approach based on macroeconomic data.

Ftse Mib down with utilities and banks

At Piazza Affari, Moncler holds out on parity with a +0.11%, supported by the positive opinion of Barclays, despite the drop in sales expected by Kering, which will publish its accounts tomorrow. Moncler will announce its third quarter accounts next Tuesday and the countdown has already begun among investors, especially to understand whether the house will once again announce better numbers than the sector average.

The automotive sector is growing, with Iveco Group a +1.14%, awaiting the results of General Motors expected today and Tesla on October 23rd. The tech sector is in the spotlight, with Stmicroelectronics on the rise by 1.05%, after SAP reported a 4.66% increase in revenue and earnings in the third quarter, thanks to demand for artificial intelligence.

Saipem, after an initial burst, it remains above par with a +0.34%, waiting for the results on October 23rd. Utilities, however, are weak A2a decreasing by 2.57% and Enel of 2.28%, also penalized by the Fed’s statements regarding possible delays in rate cuts. The banks also performed poorly, with Banca Popolare di Sondrio at -1.34% and Banco Bpm at -1.05%, among the worst on the list.

Bad Piaggio, what analysts expect

Equita’s estimates on Piaggio’s next accounts caused the stock to slip on Piazza Affari, recording a drop of 2.8% to 2.3 euros at 11.30am on 22 October. Analysts expect that the group, a leader in the production of scooters and motorcycles, which will present its results on November 8, will report a double-digit decline both turnover and ebitda.

Equita confirms its “hold” rating on the stock, but reduces the target price by 6% to 2.8 euros per share. According to the analysis, “the scenario remains challenging” and the visibility on the estimates for next year is considered low, especially in Western countries, where the demand for large-displacement motorcycles and scooters has supported the price mix in recent years, but its sustainability has yet to be verified.

Analysts expect another quarter of double-digit decline for Piaggio, with a turnover estimated at 403 million euros, down 11% on an annual basis, and an adjusted ebitda expected to fall by 12% to 69 million, despite a particularly favorable comparison base (in 2023 the turnover was dropped by 21%).

Skyrocketing orders for 7-year BTPs

Meanwhile, the Treasury has started the placement of the Btp dual-tranche composed of the new security a 7 years and from the reopening of the title at 30 years. Orders for the new 7-year BTP have exceeded quota 70 billion euros and the yield was set at 7 basis points on the July 2031 BTP. For the reopening of the 30-year bond, orders exceeded 80 billion and the yield was set at 9 basis points compared to the October 2053 BTP.

Stock markets 9am: Mixed start for the European stock markets, banks and Enel send Piazza Affari negative

Controversial start for the European stock exchanges: The Ftse Mib Of Milan records a decline in 0.1%, in line with the Cac Of Paris (-0.07%) And the Ibex Of Madrid (-0.1%). The Aex of Amsterdam remains at parity, while the Dax Of Frankfurt marks an exception, with an increase of 0.5%. Analysts are preparing for a week characterized by high volatility, with particular attention to the quarterly reports of large companies such as Tesla, Boeing, Coca Cola, 3M, IBM, General Motors and Verizon.

The biggest increases of the day on Piazza Affari: the car and luxury sectors started off well; Iveco Group advances by1.87% to 9,822 euros, while Ferrari grows by 0.57% at 443.50 euros and Stellantis scores a +0.50% at 11.986 euros, despite the rating agency Fitch having revised the outlook from positive to negative and the decline in registrations in Europe in September.

As for luxury, Moncler is starting an increase by 1.36% to 55.02 euros while Brunello Cucinelli rises by 0.96% at 94.70 euros. Stmicroelectronics makes money 1.19%, reaching 25.415 euros.

Enel is under pressure and loses 0.95% at 7.26 euros, and A2A, down by1.13% at 2.186 euros. Among banks, Intesa Sanpaolo drops by 0.63%, settling at 3.93 euros, after concluding the 1.7 billion euro buyback plan last Friday, with the purchase of shares equal to 2.62% of the share capital at an average price of 3.5481 euros per share .

Sales also on Unicredit, which sells it 0.57%, dropping to 40.32 euros. Meanwhile, the German government has chosen a line of neutrality on the Commerzbank affair: after rumors of a possible extraordinary law to counter foreign aims, including the takeover of Unicredit, the finance ministry denied these scenarios through a spokesperson.

Spread at 123 points

Stable opening for the spread between BTp and Bund, which remains at 123 basis points, the same level as yesterday’s close.

Despite the context of a sharp increase in yields on the euro curve, Italian government bonds recorded a lower performance than German Bunds across all maturities, despite the positive opinion of the rating agencies. The yield of the benchmark 10-year BTp continues to rise, reaching 3.54% at the start of the session, compared to 3.51% at the previous close.

European stock markets expected to decline slightly, Fitch rejects Stellantis in Piazza Affari

The European stock exchanges are heading towards a declining opening: futures on the EuroStoxx50 mark -0.28%, while those on the Ftse Mib fell by 0.24%. The decline was more marked for the Cac 40 of Paris (-0.39%) and the Ftse 100 of London (-0.47%), while the Frankfurt Dax limits losses to -0.11%. With little macroeconomic data on the agenda, investors’ attention remains focused on the quarterly reporting season, which has already begun in the United States and is ready to come into full swing in Europe.

On the Milanese price list, the spotlight is on Stellantis after Fitch revised its outlook from positive to negative, maintaining its BBB+ long-term rating. As for the banking sector, Intesa Sanpaolo last Friday completed the 1.7 billion euro buyback plan, launched on 3 June, purchasing 2.62% of the share capital at an average price of 3.5481 euros per share.

Also to be kept under observation Tim, following the Italian government’s consensus that American big tech should contribute more to the use of telephone infrastructure. Also focus on Stm, which could benefit from SAP’s positive results: the German giant recorded an increase in revenues and profits in the third quarter of 2024 thanks to demand for artificial intelligence, raising its forecasts for the year. In the end, Record yourself sees an increase in the target price to 48 euros by Barclays.