Business Square passes into negative territory at 12, with the Ftse Mib index falling by 0.21% to 34,606 points. The continuing decline in the price of raw, linked to Israel’s failure to attack Iranian facilities, has a negative impact on oil stocks: the WTI loses 4.23%, falling to 70.71 dollars a barrel, and Brent drops by 4.11%, to 74.28 dollars. This penalizes Eni (-2.7%), Saipem (-2.49%) And Tenaris (-1.63%).
Among banking stocks, Mps is under pressure (-1.62%), while also Bper (-0.55%), Understanding (-0.61%) And Popolare di Sondrio (-0.83%) are recording declines. Unicredit remains unchanged, while Banco Bpm continues its run with an increase of 0.93%, supported by the purchase recommendation of Deutsche Bank, which raised the target price by 19% to 7.4 euros.
Among the positive stocks, we note A2A (+1.35%), Tim (+1.2%), Terna (+0.9%), Enel (+0.67%), Campari (+0.5 %) and Italgas (+0.43%). Ferrari reduces the increase to +0.3%, while Stellantis (-0.68%) and Iveco (-0.24%) remain weak. Leonardo slips by 0.57%.
Stock markets 9am: Piazza Affari on the rise, but oil stocks collapse after the OPEC review
The European stock exchanges they begin the session with an uncertain trend, with the exception of Frankfurt, where the Dax records an increase of 0.45%. The Cac40 loses it 0.07%, The Ftse100 goes down 0.14%, while the Ftse Mib marks a modest increase in 0.48%, reaching 34,723 points. The yield on the 10-year BTP falls to 3.49%, with the spread compared to the Bund standing at 126.8 basis points, awaiting the possible cut in interest rates by the ECB on Thursday 17 October.
Banks and utilities did well
In the stock market, banks recorded gains, while investors assessed the sector’s contribution to the budget package. In particular, Banco Bpm (+1.8%) leads the group, benefiting from the promotion from “hold” to “buy” by Deutsche Bank, with a target price set at 7.4 euros. Mediobanca stocks were also positive (+1.06%) and Mps (+0.75%), on which rumors continue to circulate regarding a consortium, led by Finint, interested in taking over a part of the capital. The utility sector is also growing, with Hera up by 0.9% and A2a a +0.89%.
On the Milanese list, STM marks an increase of 0.45%, reaching 25.94 euros, following the news reported by Bloomberg according to which US officials are considering the possibility of limiting sales of advanced chips for artificial intelligence produced by Nvidia and other American companies nationwide.
Oil stocks sink after OPEC review
At the bottom of the Milanese list we find oil stocks in decline, with Saipem down by 2.99%, Eni del 2.4% and Tenaris of1.59%, weighed down by the weakness of crude oil.
The prices of petrolium are under pressure due to the downward revision of demand estimates for 2024 and 2025 by theOPEC, together with fears related to the Chinese economy and uncertainties about the evolution of the conflict in the Middle East. As reported by the Washington Post, Israel has no intention of hitting Iranian oil or nuclear infrastructure, contributing to a decline in Wti of 3.8%, which stands at 71.03 dollars per barrel. Also the Brent for delivery in December it drops by 3.68%, reaching $74.64.
Maneuver 2025 arrives in CdM
European stock markets therefore open in a mixed manner, with investors focused both on the new wave of quarterly results from US companies (including Bank of America, Citigroup And Goldman Sachs) and on the ECB’s decision regarding interest rates expected on Thursday. In this scenario, the closing records on Wall Street and the strong performance of the Nikkei in Tokyo, fueled by the weakness of the yen, partially contribute to supporting purchases on European markets.
On the domestic front, the Council of Ministers will meet this evening to approve the Budget for 2025 and the Draft Budgetary Plan (Dpb), which will be sent to the European Commission for approval. Tensions remain within the government majority regarding a possible increase in taxes on banks. The executive has announced a stimulus plan for 2025 amounting to approximately 25 billion euros, mainly intended to support low-medium incomes. According to the Dpb, Italy plans to increase the deficit/GDP ratio to 3.3% in 2025 compared to the current 2.9%, a difference of around 9 billion. The rest of the measures will be financed through increased tax revenues, spending cuts and a contribution from the banks estimated at between 3 and 4 billion.
Prime Minister Giorgia Meloni’s communications are expected today in the Senate and subsequently in the Chamber, in preparation for the European Council on 17 and 18 October in Brussels, where Ukraine, the Middle East, competitiveness and migration will be discussed.
Spread at 127 points
The spread between BTP and Bund opens stable, in a context of sharp decrease in yields on the eurozone curve. Expectations of a rate cut by the ECB, strengthened by the latest inflation data and the drop in oil prices, have pushed yields downward along the entire euro curve, with a reduction of 5-6 basis points on securities decades.
This generalized decline limits the impact on the spread, which remains stuck at 127 points, the lowest level since March. The yield of the benchmark ten-year BTp instead fell to 3.49%, compared to 3.55% at yesterday’s closing.
Stock markets have moved little, investors are cautious
The European stock exchanges are heading towards a stable opening (futures on the Euro Stoxx +0.04%), despite the recent records recorded by the Dow Jones (+0.47%) and the S&P 500 (+0.77%) on Wall Street. Investors maintain a cautious approach, focusing attention on monetary policy ahead of the ECB’s interest rate decision expected on Thursday.
On the Milanese price list, the spotlight is on Stm after the United States discussed possible restrictions on the sale of advanced artificial intelligence chips produced by Nvidia and other American companies. Meanwhile, Intesa Sanpaolo is under investigation by the Bari prosecutor’s office as a legal person, as part of an investigation into a former employee accused of unauthorized access to the bank’s IT systems to consult customer data. Among the credit institutions, Bper continues to receive positive ratings from investment bank analysts after the presentation of the new strategic plan.
Furthermore, Leonardo announces today, 15 October, the closure of the joint venture with the German Rheinmetall, while Salvatore Ferragamo holds a board of directors meeting to discuss the third quarter 2024 revenue results.
