This live broadcast ended at 6pm on Wednesday.
Caution prevailed European markets, which closed the session down. A Business Square, The main index ended below par with a decline of 0.12%. Unicredit stood out, closing at the top with a gain of 1.64%. The stock was supported by the statements of CEO Andrea Orcel, who announced a net profit expected to be “over 9 billion” for 2024, revising upwards the previous estimates that indicated a result above 8.5 billion. Prysmian also performed well at +2.01%.
Nexi continues to show signs of weakness, losing the 3.11% in this session and accumulating a loss of more than 2% in the last week. Also falling Stellantis (-1.5%), aided by speculation regarding the change of CEO and the announcement of an eight-hour strike in the automotive sector, scheduled for October 18.
What to expect in the next few days
Across the pond, after the sharp decline in consumer confidence that emerged on Tuesday, investors are looking ahead to key data for the next few sessions, including tomorrow’s third GDP reading and Friday’s PCE data, which some Fed members still expect to see a sharp decline. In this context, questions are already being asked about the central banks’ next moves, with the heads of the Fed and ECB due to speak tomorrow, particularly in light of the weak macro data for the European economy.
Stock Markets 12:00 PM: Unicredit Stands Out in Milan, Revising 2024 Profit Target
European stock markets are showing some weakness, with Frankfurt down 0.46%, Paris down 0.55%, and Milan down 0.12% to 33,840 points at 12:00. Among the most penalised stocks, we can highlight Stmicroelectronics (-1.17%), Stellantis (-1.10%) and Nexi (-1.35%). In contrast, Unicredit stands out with an increase of 1.88%: the stock, after a weak start, flies to the top of the list following the words of CEO Andrea Orcel who revised upwards the 2024 profit target and underlined that the investment in Commerzbank, in any case, will be profitable.
Deutsche Bank pulls out of Commerzbank
Investors remain hesitant about what to do, influenced by geopolitical tensions and less encouraging data from the United States. The consumer confidence data showed a significant decrease of 6.9 points, falling to 98.7 compared to expectations of an increase to 104.0. This represents the largest monthly decline in the last three years.
Meanwhile, Deutsche Bank is pulling out of a potential purchase of Commerzbank, eliminating a potential competitor for UniCredit in the race for the German bank. “’I think we still have some work to do before we are really ready to participate in the consolidation,” said Deutsche Bank Chief Financial Officer James von Moltke.
Stocks 9am: Tensions in Lebanon and China halt European markets
European stock markets opened lower, weighed down by rising geopolitical tensions on several fronts, despite Wall Street continuing to hit new highs and China benefiting from recently announced economic stimulus. Milan sees the Ftse Mib in decline 0.39%, Paris fell 0.6%, Frankfurt 0.7%, Amsterdam 0.37% and Madrid 0.5%.
In Milan, banks are doing badly
At Piazza Affari, there were declines for banks, such as Mps (-1.22% to 4.94 euros), Bper Banca (-1.28% to 4.85 euros), Nexi (-1.22% to 6.15 euros) and Unicredit (-0.48% to 37.08 euros), still struggling with the acquisition of Commerzbank and criticism from the German government. Banca Generali also performed badly (-0.45% to 40 euros), which received subscriptions to the takeover bid equal to 69% of the capital of Intermonte, which remains stable at 2.98 euros.
Finally, among oil sector stocks, Eni fell 0.14% to 14.14 euros. Japan and Italy are said to be in talks to sign a memorandum of understanding that provides for Tokyo to purchase supplies of liquefied natural gas from the oil giant, according to what was reported by Japanese public broadcaster NHK. Conversely, Tenaris rose 0.62% to 13.89 euros: after the Investor Day, Santander raised its rating on the stock to neutral.
Chapter raises: Prysmian recorded an increase of 1.05%, with the stock reaching 65.14 euros, while the luxury continues to do well with Brunello Cucinelli, which rose by 0.88% to 86 euros, and Moncler by 0.33%, bringing its value to 49.33 euros.
Interpump Group opened up 0.66% to 39.92 euros, while Tenaris rose 0.51% to 13.875 euros, followed by Iveco Group, which rose 0.44% to 9.166 euros. Other minor gains were seen for Stmicroelectronics, which rose 0.24% to 25.35 euros, and Diasorin, which rose 0.20% to 102.60 euros. Also Leonardo And Invite recorded slight increases, respectively of 0.19% and 0.18%, closing the session at 20.81 euros and 10.89 euros.
Winds of war slow down stock markets
Stock markets are struggling today, with the geopolitical picture remaining complex and holding investors back: Israeli raids in Lebanon continue, with Hezbollah which hit Tel Aviv with a missile for the first time, while the China has tested an intercontinental ballistic missile, an event that has not occurred in 44 years. An intercontinental ballistic missile, designed to carry nuclear warheads, has an operational range of up to 15,000 kilometers, which would allow it to reach the United States.
The current scenario does not seem to offer particular incentives for new increases, while attention is focused on the next move of the ECB expected in October, especially in light of the weak macroeconomic data characterizing the European situation. In the United States, however, attention is focused on key economic indicators, such as the PCE and the GDPwhich in the coming days will provide clearer indications on the progress of the American economy.
Spread at 133 points
The spread between the Italian 10-year BTP and the German Bund recorded a slight decrease at the start of the MTS electronic secondary market, falling to 133 basis points compared to 134 points at the previous day’s close. The yield on the benchmark 10-year BTP remained stable at 3.47%, in line with the closing value of the previous session.
