The direct line was closed at 6pm on Wednesday.
In the session of European stock exchangesthe tech and luxury sectors are the main negative protagonists, with the markets closing in no particular order on the eve of the ECB meeting. Rates are widely expected to fall by 25 basis points, but investors await with interest Christine Lagarde’s statements on future monetary policies. London stands out on the upside, gaining around 1%, thanks to inflation in the United Kingdom under control, which facilitates the Bank of England a possible reduction in the cost of money.
TO Business Squarethe Ftse Mib closes with a gain of 0.24%, awaiting the review of the sovereign rating by Fitch and S&P scheduled for the evening. Banks and insurance companies pass the test of the financial maneuver, having already discounted in advance the hypotheses of a contribution from the sector to balance the financial accounts, as confirmed by the government. Leonardo records a rally (+2.7%) thanks to the alliance with the Germans of Rheinmetall, while Saipem And Telecom Italy earn respectively the 2.6%. Credit institutions are positive, albeit cautiously, with Mediobanca up by 0.3% and Bpm bench of 0.6%. On the contrary, among the worst performers they stand out Interpump (-1.4%), while the luxury sector suffers, with Moncler (-0.9%) influenced by the European sector, e Campari (-0.7%).
Stock markets 12pm: Piazza Affari up thanks to the banks and the Maneuver, oil stocks also positive
While Frankfurt and Paris remain in negative territory, recording -0.05% and -0.65% respectively, London gains 0.63% and Milan turns upward, scoring a +0.04% at 34,590 points. This improvement is supported by the banking sector, with the impact of the 2025 maneuver contained, and by Leonardo, which rises by 2.86%.
Furthermore, i oil stocks they rebound thanks to the price of Brent, recovering by 0.35% to 74.50 dollars a barrel, after the sell-off the day before.
Stock markets 9am: Chips and luxury send European stock markets into the red, Stellantis also doing badly
The European stock exchanges open lower, except London (+0.74%)with the technology sector under pressure due to the profit warning of the European chip giant Asml (-4.21%). The Dax lost 0.12%, the Cac40 1%, while the Ftse Mib scores -0.25% at 34,492 points. Luxury stocks are also weighing on the market, after the results of the giant LVMH, which lost 6.3% in Paris.
The main declines of the day on Piazza Affari see Moncler in the lead with a loss of 3.57%, falling to 51.38 euros, and Brunello Cucinelli, which drops by 2.22% to 90.40 euros. Drops due to the not positive results of Lmvh, which announced a drop in sales of its fashion and leather goods division, an unprecedented fact since the beginning of the pandemic.
Ferragamo also performed badly, but outside the main basket, suffering a significant drop (-5.48% to 6.12 euros) after closing the first nine months of 2024 with revenues of 744 million euros, down by 9.8 % at constant exchange rates and 11.9% at current exchange rates compared to the same period of 2023. In the third quarter, revenues fell to 221 million euros, recording a decline of 7.2% at constant exchange rates and 9. 6% at current exchange rates.
Also in the red was Stellantis (-1.58%), which reported an estimated 20% drop in vehicles delivered to the sales network, distributors or directly to end customers in the quarter ended September 30, compared to the same period of previous year.
STM also did poorly (-1.32% to 24.68 euros), influenced by Asml’s profit warning and by news that the Biden administration is considering limitations on the sale of advanced artificial intelligence processors to some countries. Artificial intelligence chip giant Nvidia also fell 4.5%, after momentarily overtaking Apple as the world’s most valuable company, wiping about $158 billion from its market capitalization.
The day’s increases were few and slight: Leonardo is the best with an increase of 1.48%. Followed by Saipem, which gained 1.39% to 2.002 euros, and Banca Monte dei Paschi di Siena with an increase of 1.07% to 5.302 euros.
Waiting for Fitch and S&P ratings
Traders are giving themselves a pause for reflection after the recent highs, awaiting the ECB meeting tomorrow, which should lead to a rate cut of a quarter of a point.
However, markets remain weighed down by concerns about the technology sector, influenced by Asml’s profit warning, which has put chip-related stocks under pressure, predicting a slower recovery in 2025. Furthermore, news of possible restrictions by the American government on the export of advanced chips to some countries. In Italy, attention is also focused on the rating review by Fitch And S&P, expected in the evening, as in the United Kingdom.
Spread at 125 points, rising
Eurozone government bond yields opened lower, with the spread between BTp and Bund remaining stable at the lowest level in the last eight months. On the eve of the ECB meeting, which is expected to reduce Eurozone rates by 25 basis points, bringing the deposit rate to 3.25%, the movement is also supported by the decline in inflation in the United Kingdom, which could push the Bank of England to new moves. Mid-morning, Istat will publish data on price trends in Italy for September.
The yield of the benchmark ten-year BTp drops to 3.44% from 3.46% of the previous closing, while the spread with the Bund of the same duration it stands at 125 basis points, slightly up one point compared to yesterday.
European stock markets expected to decline, weighed down by -16% of the tech company Asml in Amsterdam
The European stock exchanges are expected to fall sharply at the opening, with the Eurostoxx70 future down 0.70%, after the chip equipment manufacturer Asml reduced its annual sales estimates. The stock lost 16% on the Amsterdam stock exchange. CEO Christophe Fouquet said: “We expect total sales in 2025 to grow between 30 and 35 billion euros, i.e. in the lower part of the previously indicated range”. To make clear the extent that this decline may have, the artificial intelligence chip giant Nvidia fell by 4.5%, erasing approximately 158 billion dollars from its market capitalization.
In Piazza Affari, the spotlight is on banks and insurance companies, given that the government plans to collect 3.5 billion euros from these sectors in the budget for 2025. Attention also to Stm, influenced by the profit warning of Asml. In the luxury sector, focus on Ferragamo, which in the first nine months of 2024 recorded revenues of 744 million euros, down by 9.8% at constant exchange rates and by 11.9% at current exchange rates compared to the same period of 2023. In the third quarter, revenues fell to 221 million euros, with a contraction of 7.2% at constant exchange rates and of 9.6 % at current exchange rates.
