There Milan Stock Exchange opens down after the weekend break but recovers immediately, currently reaching +0.24% at 34,401 points. Other European stock exchanges are also cautious, with drops that do not reach one percentage point. The worst performer is Paris, which opens at -0.80%.
The spread between Italian and German ten-year government bonds reaches up to 133 basis pointsagainst the 130 points of last Friday’s close.
Banks and luxury in red
If last week was a rollercoaster for the Italian and European stock markets, with an initial drop and then a recovery in mid-morning, today the recovery happened immediately: Milan opened with a -0.3%, but recovered quickly, reaching +0.24%.
The increase was mainly driven by Saipem which, after having won two offshore projects in Saudi Arabia worth 500 million dollars, opened today at 2.403 euros per share, recording an increase of 2.08%.
Leonardo saw an increase of 0.70%, with a final price of 23.10 euros. Tenaris had a slight growth of 0.07%, reaching 14.37 euros. Finally, Ferrari closed at 398.60 euros, with a modest increase of 0.05%.
Instead, it was the banks that struggled: Banca Monte Paschi Siena lost 1.80%, while Bper Bank recorded a decline of 1.55%, with also Sondrio People’s Bank which saw its value drop by 1.28%. Also Bpm Bank recorded a decrease of 1.06%, closing at 6.152 euros. Unicredit also performed badly, but below the percentage point, at only -0.82%.
Looking beyond the banking sector, luxury houses such as Moncler (-2.02%) and Brunello Cucinelli (-1.91%); Stmicroelectronics is also negative (-1.11%). Campari also performed badly with a 0.92% decline, the same result as Nexi. Finally, Fincantieri also took a step back, by 1.21% to 4.81 euros.
European stocks open cautiously
Other European stock markets were also cautious, following the attack on presidential candidate Donald Trump. Investors believe that this event could inflate the chances of a victory for the former Republican president, which led to an increase in purchases of stocks and cryptocurrencies, with the belief that a return of the tycoon to the White House could stimulate the markets, as happened during his previous term.
The indices started cautiously: Frankfurt at -0.2%, while London reached -0.50%. Paris fared worse, at -0.80%, driven in this case by the political uncertainty that persists after the elections in France without a clear winner and the difficulties in forming a new government. The only positive in the morning was Amsterdam, at +0.03%.
Spread at 133 points
The opening of the markets saw a slight increase in the spread between BTPs and Bunds. At the start of the session, the yield differential between the benchmark 10-year BTP and the German Bund of the same maturity stood at 133 basis points, compared to 132 points on Friday. The yield on the benchmark 10-year BTP remained stable at 3.79%, unchanged from the previous day’s close.
