The decline in the automotive sector causes European stock markets to fall, Milan in the red with Stellantis at -2.4%

This live broadcast closed at 6pm on Tuesday.

The crisis of the sector automotive continues to negatively influence European stock markets, but investors’ attention is mainly focused on Google (Alphabet), which will publish its quarterly results this evening with the markets closed, inaugurating the quarterly reporting season for Big Tech.

Stellantis collapses like the entire European automotive sector

Milan closed 0.26% lower in the FTSE MIB, weighed down by the decline in Stellantis, which recorded a -2.4%. The auto sector crisis intensified after Volkswagen’s shock announcement of three plant closures, while Ford released disappointing estimates, leading the stock to lose more than 9% on Wall Street at the start of the session. Frankfurt also closed in line with Milan, while Madrid suffered a decline of 0.8%, negatively affected by the collapse of Santander after the publication of its quarterly results.

In Piazza Affari, in addition to Stellantis, losses were also recorded for Erg, which drops by 2.2%, e Amplifon, down 1.59% ahead of the release of quarterly results. Utilities and stocks linked to the oil sector are showing signs of weakness, thanks to the new decline in oil prices. However, Tenaris stands out with an increase of 1.68%, while St advances by 1.6%. Iveco gains 0.8% thanks to rumors regarding a possible involvement in the joint venture between Leonardo, which falls by 0.7%, and Rheinmetall.

Stock markets 12pm: Piazza Affari driven by Iveco and oil stocks

European stock markets continue to gain ground, with Frankfurt increasing by 0.49%, Paris of 0.71%, London of 0.37% And Milan which rises from the 0.58%, reaching 35,219 points, the highest since May. Piazza Affari is led by Iveco Group at +2.11%, in negotiations to participate in the mega order for the new tanks of the Italian army with the newly formed Leonardo-Rheinmetall jv, but also Tenaris at +2.42% e Stmicroelectronics at +1.26%.

Furthermore, Istat data reveal that, in the period January-September, the average hourly wage in Italy it increased by 3.2% compared to the same period of 2023. As regards foreign trade, in September the Italian extra-EU surplus stood at 3.657 billion euros, up compared to the 2.817 billion of the previous year, even if exports recorded a drop of 2% on a trend basis and imports fell by 6.2%, compared to -6.8% and -6.4% in August.

Stock markets 9am: Iveco opens positively in view of the Leonardo-Rheinmetall agreement

The European stock exchanges the increases recorded yesterday continue, awaiting the start of the quarterly reporting season for US big tech companies, which will be inaugurated by Alphabet, Google’s parent company. Meta and Microsoft will present on Wednesday, Apple and Amazon on Thursday. In the early stages, the best is Paris (+0.6%)followed by Milan (+0.5%), Frankfurt (+0.4%) And London (+0.3%).

In Piazza Affari, the main increases of the day were led by Tenaris, which made gains 1.48% reaching 15.07 euros. Iveco Group follows closely and is on the rise by 1.45% at 9.902 euros, which is ready to enter the Leonardo-Rheinmetall match; the company is negotiating with Leonardo (who also tested positive +0.77%) a significant participation in the production of future tanks and infantry tracks (Aics) for the Italian Army.

The good period of banking stocks continues, with Banca Mediolanum recording progress by 1.14%, followed by Bper Banca with a +0.93%. Prysmian also did well, rising by 0.88% at 69.16 euros, and Banco BPM, which advances by 0.81%, while Interpump Group gains lo 0.73%. Intesa Sanpaolo closes the list of main increases, with an increase of 0.69%, and Brunello Cucinelli, who grows up 0.59%.

Among the main declines of the day stands out Erg, which loses 1.47% and closes at 21.48 euros. Generali follows with a decline in 0.53% to 26.10 euros, while A2A drops by 0.46%, settling at 2.158 euros. Stellantis is also slightly down, recording a -0.41% to 12,652 euros, given that the government has cut over 4.6 billion to the Automotive Fund, intended for the adoption of measures to support the reconversion of the supply chain. Saipem opens at 2.182 euros with a drop of 0.27%.

Losses also for Hera (-0.22%), Banca Popolare di Sondrio (-0.21%), Amplifon (-0.14%), Snam (-0.13%) and Moncler (-0.07%), which presents its quarterly accounts today.

Bitcoin soars awaiting US vote

In the United States, the approaching presidential elections are reflected in the surge in Bitcoin, which reaches high levels 71 thousand dollars (+4.4%) for the first time in four months, driven by former President Donald Trump’s support for cryptocurrencies. Bitcoin thus confirms itself to be sensitive to the American political context, in particular to the support recently shown by the former president. A record for the virtual currency, marking the highest since June and approaching the historical records of last spring (with the March peak at 73,798 dollars), on the eve of the next halving.

Last summer, as a guest of honor at the Bitcoin Conference in Nashville, Trump promised to make the United States “the crypto capital of the planet and the bitcoin superpower of the world.” Investors, therefore, seem to seriously evaluate this scenario, with a renewed interest in digital assets.

Spread at 120 points

The spread between BTp and Bund opens with slight variations, in a context of general stability for the yields of Eurozone government bonds.

The absence of relevant macroeconomic data in Europe shifts the attention of operators towards the United States at the beginning of this week, awaiting data on GDP and, above all, on inflation in Germany and the Eurozone, expected tomorrow. At the opening, the yield of the reference ten-year BTp rose slightly to 3.50%, compared to 3.49% at the previous close, while the differential with the Bund of the same maturity reduced to 120 points from last night’s 121 points.

The stock markets are preparing for a positive opening, under the lens of Piazza Affari Stellantis and Stm

The main indices of Italian stock exchange and the main European financial markets are expected to start the session slightly above equality. In the US market, the main stock indexes showed moderate increases during the first day of the week. The Dow Jones rose 0.65%, reaching 42,388 points, while the S&P500 recorded an increase of 0.27% to 5,824 points. The Nasdaq also closed up 0.26% at 18,567 points.

Furthermore, the positive trend for the Bag Of Tokyo, with the Nikkei index closing the day up by 0.77%, to 38,904 points, reaching the daily high, with a minimum of 38,417 points.

Stocks to watch today include Campari which presents its quarterly results today, as well Moncler; for the latter, Barclays estimates revenues of €639 million, down 2% year-on-year at constant exchange rates. Then eyes also focused on Stellantis And Pirelli, with the Italian government reducing the automotive fund by over 4.6 billion euros, intended to support the reconversion of the supply chain, according to Anfia (National Association of the Automotive Industry).