European stock markets close mostly in the negative, weighed down by the uncertainty of the situation in the Middle East, after Israel announced a response to the Iranian attack on October 1st. Milan slows down in the afternoon, stopping just below parity negative by 0.28%. Frankfurt fares worse, with the Dax40 in flexion of 0.34%. He manages to stay just above par Cac40 Of Paris, but only by 0.05%.
In Milan Leonardo remains the fastest growing stock, consolidating the morning’s result and closing at +3.63% on the start of trading. Amplifon follows, just under 2% and Sapiem at +1.65%, while Eni loses part of its gains and stops at +1.64%. Among the worst it stands out Iveco, black shirt with -2.67%while Pirelli limited the damage in the first hours and stopped at -2.43%.
Stock markets 12pm: slight optimism, Leonardo stands out in Milan
European stock markets are showing cautious optimism as they closely monitor the escalation of conflict in the Middle East, after Lebanon launched an attack on Israel. Business Square marks a slight increase of 0.10%, remaining in positive territory. The DAX 40 in Frankfurt, however, shows a slight decline of 0.21%, while the Cac 40 in Paris is the best index of the Old Continent, with an increase of 0.29%.
The stocks on Piazza Affari that recorded the biggest increases in the morning include Leonardo, who earns the 3.78% and reaches a value of 21.13 euros per share, ed Eni which follows with an increase of 2.33%, bringing its price to 14,214 euros. It’s still bad Pirelli which marks a -4.04%after Brembo’s farewell. Cali also for Erg And Enel, which mark respectively -2.05% And -1.91%.
Stock markets 9am: Caution prevails in Europe after the attacks in Israel
The European stock exchanges are fluctuating, with investors carefully watching the escalation of conflict in the Middle East, following Lebanon’s attack on Israel in the evening. The geopolitical situation caused a decline on Wall Street, interrupting the series of records recorded in the previous days. Business Square marks a +0.27%, remaining close to parity, while Frankfurt recorded a slight increase in 0.04%. Paris it is the best among the European indices, with an increase of 0.29%.
With little macroeconomic data on the agenda, investors’ attention is turned to the unemployment data in Europe, expected in the late morning.
Brembo exits Pirelli and the stock collapses
Pirelli and Brembo are under special observation in Piazza Affari, after the latter announced that it had sold its entire stake in the tire company for 282.9 million euros. And the effects are felt: on the Milan price list Brembo marks an increase of 3.29%, while Pirelli drops by -3.37% at 5.162 euros.
The investment began in 2020, during the pandemic, and had fueled speculation about one possible merger between the two groups, which however never materialised. In 2023, Brembo and Camfin, Marco Tronchetti Provera’s company, had entered into a consultation pact for the renewal of Pirelli’s board of directors, while the Italian government exercised the golden power to limit the influence of the Chinese Sinochem, the majority shareholder .
However, in September, Pirelli chose Bosch as a partner for its smart tires, a decision that may not have been appreciated by Brembo. As a result, Brembo has entrusted BNP Paribas with the sale of its assets 55.8 million Pirelli shares through an accelerated bookbuilding procedure (a procedure by which a company quickly sells a portion of its shares, or the shares of a subsidiary, to institutional investors).
Today’s other stocks
Apart from Pirelli and Brembo, there was little movement on the day at Piazza Affari: the stocks that recorded the biggest increases of the day saw Leonardo with a growth of 2.11%, bringing the price of its shares to 20.79 euros and the luxury stocks, with Moncler reaching 1.13%, equal to 55.70 euros, and Brunello Cucinelli recording an increase of 0.84%, reaching 95.60 euros per share. Oil stocks also performed well (+1.4% Eni, +0.6% Saipem and +0.55% Tenaris).
Among the banks, Bper Banca rose by 0.83%, settling at 4.855 euros, and Banca Monte Paschi Siena recorded an increase of 0.50%, with a value of 5.024 euros.
In addition to Pirelli, the other declines see Hera record a decline of 1.12%, reaching 3.546 euros, while Mediobanca fell by 1.06%, closing at 14.91 euros. Snam lost 0.80%, with a value of 4.584 euros per share, and Terna closed down 0.71%, settling at 8.066 euros.
The winds of war are holding back the markets
Weak start for the main markets of the continent, while attention remains focused on the escalation of the conflict in the Middle East, which in the previous day caused the decline on Wall Street and also dragged down the European stock markets. Iran’s attack on Israel has intensified concerns about a possible widening of the conflict, pushing major US stock indexes lower, while oil prices have risen.
Even the Asian bags show a contrasting trend. In Hong Kong, the market continues the rally started thanks to the economic stimulus package announced by Beijing, reaching the highest levels since February 2023. On the contrary, Tokyo closed lower, weighed down by sales on Wall Street and growing geopolitical tensions.
The prospect of an escalation of the conflict in the Middle East, following Iran’s attack on Israel, has in fact dragged down the main US stock indices and increased the prices of petrolium: The WTI, with delivery in November, it trades at $71.05 per barrel, recording an increase of 1.75%, while the Brent, with delivery in December, it is instead listed at $74.71 per barrel, with growth of 1.56%.
Macroeconomic data expected today
On the economic front, the fall in Eurozone inflation to below 2% is reinforcing investor expectations for a possible 25 basis point cut by the ECB at its meeting on 17 October. Data on the rate will be published today unemployment in the EU for the month of August, while in the United States the ADP estimate on new jobs for September is awaited.
The decision of the Polish central bank is also awaited, which according to forecasts will leave rates unchanged at 5.75%. Meanwhile in Japan, consumer confidence is increasing slightly.
Spread at 133 points
Eurozone government bond yields open stable, maintaining the minimum levels reached yesterday afternoon due to the increase in tensions in the Middle East between Iran and Israel. Tehran’s missile launch against Israel has intensified risk aversion in financial markets. At the opening, the yield of the ten-year Bund stood slightly above 2% (2.06%), a threshold exceeded only in the last days of 2023. The reference ten-year BTp yields 3.39%, compared to 3.38 % recorded at the close yesterday, marking the lowest value since August 2022. Lo spread remains stable a 133 basis points.
Unicredit analysts predict that, in the event of a further increase in tensions in the Middle East, the yields on government bonds of the main countries could fall, driven by investors’ search for assets considered safer.
