This live broadcast ended at 6pm on Tuesday.
European stock markets closed positively, driven by the rebound in sectors luxury and basic resources. This is due to the measures taken by the Chinese Central Bank, which announced cuts to interest rates and the banks’ reserve ratio. Interventions aimed at countering the risks of deflation and facilitating the achievement of the country’s economic growth target, which have done well especially for companies most exposed to the People’s Republic, such as those in the fashion sector.
Luxury, however, has suffered a bad blow today: Bank of America has provided a purchasing guide to its customers, highlighting some shares that are not currently recommended; among these, those of giants such as LVMH, Kering and the Italian Zegnacompanies that have been in obvious difficulty for some time.
Among the European stock exchanges, Frankfurt stands out with a significant gain of 0.80%, while London closes with a moderate increase of 0.28%. Paris records a good performance, with an increase of 1.28%. The Milan Stock Exchange also shows a slight increase, marking a rise of 0.60%.
Among the best of the Milanese price list, it stands out Tenaris, which gains 4.35%, followed by Brunello Cucinelli (+4.2%) and Iveco (+2.7%). On the opposite side, at the bottom of the blue chip basket, we find Prysmian down 2.2%, Fineco (-0.8%) and Italgas (-0.6%). The spread between BTPs and Bunds remains stable at 134 basis points.
Stock Market 12pm: Milan among the best of the day, luxury still ahead
European stock markets continue to rise. Paris rises by 1.62%, London by 0.40% and Milan by 0.64% to 33,894 points. Frankfurt is also up by +0.70% despite the terrible data on the Ifo index and the news, reported by Reuters, that the main German economic institutes have revised downwards their forecasts for 2024 on German growth. They now expect Europe’s largest economy to record a contraction of 0.1%. Instead, growth forecasts for 2025 have been reduced to 0.8% from 1.4%, while for 2026 they have estimated growth of 1.3%.
Stock Market 9am: Milan and Europe in positive territory thanks to Chinese stimuli: luxury recovers
European stock markets are in good shape at the start of the session. Frankfurt is up 0.88%, Paris is up 1.29%, London is up 0.51% and Milan of the 0.59% at 33,879 points.
A positive momentum coming from the United States (in the wake of the new records of Wall Street with the S&P closing up 0.3%) but above all by the China, with the Chinese Central Bank announcing the launch of a series of measures aimed at relaunching the national economy. This is benefiting the companies most exposed to the People’s Republic, such as those in the fashion sector, which have been suffering on the markets for some time.
Stellantis and the luxury sector grow
In the Milan price list, Stellantis records an increase in1.86%, settling at 14.034 euros, while the search begins for the successor to CEO Carlo Tavares, whose contract expires in 2026. According to Bloomberg, there are no plans for an immediate change in leadership and Tavares himself will be involved in the selection process. Among other industrial companies, growth is reported by Stm (+2% to 25.35 euros) and Pirelli (+0.95% to 5.54 euros).
Unicredit, Meanwhile, it increased the value of its shares by 0.30%, reaching 36.84 euros, while the German Chancellor Olaf Scholz criticizes the acquisition of 11.5% of Commerzbank (+0.51% to 14.86 euros in Frankfurt) as a hostile act, since it was carried out without prior consultation. Unicredit had already requested authorization to reach up to 29.9% of the capital shares of the German bank.
It resumes luxury after yesterday’s drops: Moncler grows by 1.83%, reaching 49.53 euros, and Brunello Cucinelli (+3.18% to 84.4 euros), also records a recovery thanks to the recent economic stimulus measures launched by China.
On the decline instead Leonardo (-0.34% to 20.85 euros), after the Italian government gave the green light to Blackrock to hold more than 3% of the company’s capital. The government maintains the so-called “golden power”, a veto right that allows it to block or impose conditions on foreign or domestic acquisitions, as well as changes to the governance of companies operating in strategic sectors such as energy, telecommunications, defense and banking.
Stocks in positive territory thanks to Wall Street and China
The rise in European stock markets was expected yesterday, but instead it arrived today. The positive push from Wall Street and Asian stock markets have done Europe good, with Chinese markets marking strong increases thanks to the approval of a series of economic support measures by the authorities in Beijing. Among the best-performing Asian stock markets, the most notable are Hong Kong And Shanghaiwith earnings above 3%.
Today, the focus will be on the German Ifo data for September, which are key to measuring business sentiment, as the economic slowdown fuels recession fears. Across the pond, the US consumer confidence data for September will also be in focus. However, the key day will be Thursday, when the speeches of the presidents of the Fed and of the ECB, together with the third reading of the US GDP. Of particular interest will be the annual revision of the historical GDP series of the last five years, which could reserve surprises both on the upside and on the downside.
Spread at 135 points
The spread between BTp and Bund opens in a stable manner, with the yield differential between the reference Italian 10-year BTp and the corresponding German bond standing at 135 points basis, the same value recorded at yesterday’s close. There is a slight drop in the yield of the benchmark 10-year BTP, which stands at 3.51%, compared to 3.52% at the previous close.
