European stock markets continue to suffer at the beginning of September, weighed down by doubts about the solidity of the US economy and the weakness of energy demand. At Piazza Affari, the Ftse Mib recorded a loss of 1.33%, falling again below the threshold of 34 thousand points (33,863), exceeded only last week. The other European stock markets are also in the red, as is Wall Street, which opened lower after the Labor Day break: the main European stock markets closed in negative territory: Frankfurt recorded a decline of 0.97%, while London suffered a loss of 0.78%. Paris is also in decline, with a retreat of 0.93%.
Across the pond, the declines were led by the semiconductor sector, with Nvidia down 7% on the session, as global semiconductor sales fell 11% in July from the previous month.
Milan the worst in Europe, banks weigh heavily
It was also a difficult day for the energy sector, with the price of oil falling to its lowest level this year following OPEC+’s decision to increase production and growing fears over demand from China. This hit energy and raw material stocks hard, as demonstrated by the sharp fall in Saipem at Piazza Affari (-7.07%). More moderate losses for Eni (-2.5%) and Tenaris (-0.86%).
The banking sector was also in the red, reversing the previous day’s gains, with MPS losing 3.16% due to uncertainties over the Mef share and the ruling on the repayment of subordinated bonds. Stmicroelectronics also suffered heavy sales (-4.6%), in line with the losses in the technology sector. The only positive exception was Brunello Cucinelli, which recorded the best performance with a rise of 2.84%.
Stellantis also had a negative session, after a complicated start, closing with a 2.76% decline, in the wake of negative registration data in August in France, Italy and Spain. This is a figure that is decreasing both at market level (-15%), and for Stellantis itself, which underperformed with a -29% decline.
Stock Market 12:00: Milan gives way and goes down, all banks do badly after Claudia Buch’s words
European stock markets are moving in a mixed way. While Frankfurt and Paris are showing increases, respectively by 0.08% and 0.23%, London and Milan are declining. The first one is down by 0.02%, while Piazza Affari loses 0.84%, with the Ftse Mib index standing at 34,034.43 points at 12. This drop is caused by the decline of all banks, influenced by the warning of Claudia Buch, Chair of the Supervisory Board of the ECB, on the growing credit risks linked to geopolitical factors.
The worst is Monte Paschi Siena Bank, which gives way 4.99% and stands at 4.929 euros. Followed by Bper Banca, which loses 3.15% to 4.891 euros, and Banco BPM which records a decline of 2.70%, with the value falling to 5.99 euros, while Banca Popolare di Sondrio slips 2.58% to 6.805 euros. Unicredit is down 1.80%, with the stock at 36.84 euros, and Intesa Sanpaolo falls 1.75% to 3.7075 euros.
Tim and Saipem also show significant declines, respectively -1.79% and -2.5%. Iveco Group also loses 1.74%, falling to 9.25 euros, while Telecom Italia records a decline of 1.70% to 0.2311 euros. Finally, STMicroelectronics is down 1.50%, with a value of 28.235 euros. However, luxury stocks are performing well, with Moncler up 1% and Brunello Cucinelli advancing 3.4%.
Stock Markets 9am: Milan and Europe open positively, oil and gas do well and Leonardo rises again
The European stock exchanges open the session with slight increases: Frankfurt marks a +0.26%, Paris a +0.21%, London a +0.15%, and Milan +0.09% reaching 34,349.23 points. The spread between BTPs and Bunds remains stable at 145 basis points, with the yield on the 10-year BTP falling to 3.77%.
On the macroeconomic front, the US ISM manufacturing data is awaited, but the main focus of the week is on the US labor market data due on Friday. These data are considered fundamental by investors, who hope they will confirm the possibility of a rate cut by the Fed.
Leonardo rises again, gas and oil sector doing well
In the FTSE MIB, Brunello Cucinelli records the biggest increase of the day with an increase of1.76%reaching 89.50 euros. Leonardo follows, up 0.75% to 21.46 euros, and Moncler, which rises 0.55% to 54.98 euros. Leonardoafter the 7.2% fall on September 2nd in line with other European defense stocks, rebounds‘1.31% at 21.58 eurosThe previous decline had been caused by fears that the advance of the far-right AfD in Germany could push the Scholz government to reduce military aid to Ukraine.
On the Milan stock exchange, the oil sector stocks deserve attention, in particular Eni, which marks a +0.31% to 14.74 euros. Claudio Descalzi’s company is facing a major maintenance at the Libyan oil field of El Feel, managed in a joint venture with the National Oil Corporation. Italgas and Tenaris also did well, both up 0.26%, respectively to 5.085 euros and 13.40 euros, followed by Terna, also up 0.26% to 7.854 euros.
In the automotive sector, Stellantis loses 0.12%, falling to 15 euros, after recording a 32.24% drop in registrations in Italy in August, with a market share that falls to 24.82% compared to 28.04% in July, underperforming the market, which recorded a 13.37% drop.
German elections shake European stock markets
Among the main European stock exchanges, Frankfurt makes a small step forward with a progress of 0.26%. London remains substantially unchanged, with a moderate increase of 0.15%, while Paris records a modest growth of 0.21%.
The election results in Thuringia and Saxony, where the far-right AfD won a strong consensus, have intensified fears of political instability in Europe, already fueled by France’s difficulties in forming a government. Claudia Buch, chair of the ECB’s supervisory board, stressed that geopolitical risks increase credit risks, warning banks to take them into account.
Today, September 3, Buch will speak again at 2:00 p.m. in Frankfurt, during a joint conference with the European Banking Authority and the ECB. In addition, other keynote speeches are expected: at 4:00 p.m., Kerstin af Jochnick, member of the Supervisory Board of the ECB, will speak, while at 6:45 p.m., Joachim Nagel, President of the Bundesbank and member of the Governing Council of the ECB, will speak.
Spread at 145 points
Italian government bonds have had a positive start on the MTS electronic secondary market, with the prices of the 10-year bond rising, in line with other core sovereign bonds in the eurozone. At the start, the spread between the benchmark 10-year BTP and the corresponding German bond stands at 145 basis pointsup from 144 points at Monday’s close.
The yield on Italy’s benchmark 10-year BTP fell slightly to 3.77%, from 3.78% the previous day.
