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The European stock exchanges closed the last session of the week with a good rise, supported by the new measures announced by the Chinese central bank to support the economy. Positive signs are also arriving from the United States: inflation continues to slow down. In August, the PCE index, the Fed’s preferred metric for measuring inflation, rose by 2.2% on an annual basis, slightly below estimates of 2.3%. This news could push the Federal Reserve to consider further rate cuts, following last week’s 50 basis point cut.
In Milan, the Ftse Mib accelerates in the finale, closing with an increase of 0.92%, driven by Moncler. The title shot to the top of the list with a +10.9%, thanks to the announcement of LVMH’s entry into Double R, the investment vehicle controlled by Ruffini Partecipazioni Holding.
They also shine StMicroelectronics (+5.9%), on the back of positive results from Micron Technology, and Stellantis (+4%), which recovered ground along with the European automotive sector, fueled by speculation about a possible merger with Renault.
Stock market 12pm: Moncler and luxury stocks soar
European stock markets consolidate their rise, despite US futures remaining stable. Frankfurt marks a gain of 0.67%, Paris of 0.46%, London of 0.44%, While Milan advances 0.61%, reaching 34,620 points at 12. This increase is mainly supported by the progress of luxury like Moncler (+10.03) and Brunello Cucinelli (+2.73), but also thanks to the industrial such as Stm (+4.63%), Diasorin (+2.58%) and Stellantis (3.93%).
Stock markets 9am: the race continues thanks to China
Driven by the new incentives coming from China, European stock markets continue their rise. Frankfurt records an increase in 0.25%, Paris of 0.27%, London of 0.07%, While Milan grows from 0.36% reaching 34,534 points.
On the Milan Stock Exchange, oil sector stocks recover ground despite the price of Brent has fallen to 71 dollars a barrel. Saipem gains 1.22% to 1.9435 euros, Tenaris grows by 1.89% to 14 euros, and Eni advances by 0.84% at 13.68 euros. The latter has been contacted by two potential buyers interested in selling a second stake in its Enilive biofuels division, while the company is finalizing details for the sale of part of the division to the US fund KKR, according to Reuters sources.
Interpump Group opens higher at 41.82 euros with an increase in1.60%; same data for Stellantis, which stands at 14.216 euros. Among the other growing stocks, Diasorin reaches 104.10 euros with an increase of 1.36%, while Ferrari advances by1.05% reaching 433 euros. Finally, Nexi recorded an increase in 0.91%, opening at 6.178 euros. Stmicroelectronics continues to run (+3.4%)still dragged by the sprint of the American Micron Technology.
Among the declining stocks, Prysmian opens at 65.22 euros, recording a loss of1.98%. The banks follow, with Bper Banca a -1.55%, falling to 5.072 euros, and Banco Bpm to -0.61% at 6.238 euros. Unicredit remains under special observation (-0.7%), on the day the bank’s top management met those of Commerzbank.
Luxury at the top, Moncler at +11%
But luxury continues to reign supreme: especially Moncler which flies11%reaching 59.80 euros, after LVMH acquired, through a new corporate vehicle, a 10% share in Double R, the investment vehicle controlled by Ruffini Partecipazioni Holding, which holds approximately 15.8% of the down jacket company . The deal calls for Double R to increase its stake to a maximum of 18.5% over approximately 18 months through additional share purchases. Brunello Cucinelli also did well, +2.79 and with the shares at 94.10 euros.
Still in the fashion sector but outside the main basket, Aeffe is suspended with a theoretician +12.8% after selling the Moschino brand to Euroitalia for 98 million euros, covering cosmetic products, perfumes, scented candles, air fresheners and fabrics. This transaction will reduce Aeffe’s net financial position, have a positive impact on the income statement and support the expansion of its brands.
Why the stock markets are doing so well
European stock markets continue to rise, following the enthusiasm of the previous session’s rally, with investors continuing to monitor news from China. There Central Bank of China confirmed the reduction of banks’ mandatory reserve ratio, a measure that will free up around 127 billion euros of liquidity in the financial system. This decision adds to previous interventions, aimed at supporting the country’s economy and real estate sector.
On the macroeconomic front, after the encouraging signals coming from American GDPinvestors’ attention is now focused on the data relating to August inflation in the United States, measured through the PCE (Personal Consumption Expenditures) index, which will be decisive in guiding the Federal Reserve’s monetary policy.
Spread at 130 points
The start of trading for government bonds on the MTS electronic secondary market is stable. The spread between the Italian ten-year BTp and the German Bund of the same maturity remains at the levels of the previous day, standing at 130 basis pointsin line with Thursday’s close, after hitting 135 basis points on Wednesday. The decline in the yields of the Italian ten-year BTp also continues, which opens at 3.44%, down compared to the 3.48% recorded in the previous session, marking a new low since the summer of 2022.
