The European stock exchanges recorded a rebound in the first session of the week, after a negative week that saw the Stoxx600 lose 3.6% and Piazza Affari 3.15%. Milan closed up by 0.9%, supported by the return of purchases of bank stocks. Investors’ attention is turned to the key meeting of the ECB, scheduled for Thursday, with operators’ expectations oriented towards a new interest rate cut of 25 basis points, the second after the one in June, which could bring the deposit rate to 3.50%.
The spread remains unchanged at 140 basis pointswith the yield on the 10-year BTP stable at 3.54%.
Banking sector recovers, luxury continues to decline
At Piazza Affari, the banking sector is back to recovering after the weakness of the last sessions. Among the best, Sondrio People’s Bank records an increase in 2.6%, followed by Intesa Sanpaolo (+1.6%) And Mediobanca (+1.5%). In the financial sector, Generali also gained 1.2%, with Francesco Gaetano Caltagirone strengthening his share to over 7% of the company’s capital. Utilities, protagonists of last week, are more subdued: Enel marks a slight increase (+0.04%) and Erg rises by 0.2%.
Unicredit marks a 1% increase, with rumours from Il Messaggero speaking of a staff reorganization, including a thousand voluntary exits, the reconversion of 600 employees from headquarters to branches, and the hiring of 500 young people. Mps closed up 0.8%, with operators’ attention focused on the next moves of the Ministry of Economy, which plans to reduce its stake, currently at 26%, by the end of the year, in line with the commitments made to the EU.
Campari It is positioned at the top of the price list, closing with an increase of 3.6%. Nexi also performed well, gaining 2.4%, and Prysmian, which gained 2.1%.
The luxury sector is suffering throughout Europe, with Moncler which closed as the worst stock in the Ftse Mib (-0.9%), while Brunello Cucinelli limited its losses with a drop of 0.4%.
Other stock markets also remain positive
The other main European indices also closed in positive territory. The Cac 40 of Paris records an increase in1%while the Dax of Frankfurt earn it 0.7%. The Aex of Amsterdam and the Ibex of Madrid respectively mark an increase in1% and 0.8%while the London Ftse 100 closed with a +1%, confirming a good overall performance for European stock markets. At sector level, the banking sector recovered, with the sector sub-index up by 1.17%. The pink jersey for travel (+2.18%) followed by chemicals (+1.36%). The only sectors below par were cars (-0.06%) and retail (-0.01%).
Stock Market 12:00: Milan Travels with a Plus Sign
The main European stock exchanges confirmed a positive trend in the first session of the week, despite the decline recorded in Asia and the Pacific due to the slowdown of the Japanese GDP and the risk of deflation in China. GDP increased by 2.9%, lower than the 3.1% forecast, while Chinese inflation rose by 0.6% in August, against 0.7% in July. Milan is the best with an increase of 1%, followed by Frankfurt (+0.95%), Madrid (+0.81%), Paris (+0.79%) and London (+0.65%).
Ftse Mib accelerates upwards with Bper and Unipol
Bper Bank leads the day’s gains with an increase in 2.23%, reaching 4.915 euros. Unipol follows with an increase of 2.21% to 9.71 euros, while Unicredit rises by 2.03% to 36.96 euros.
Nexi gains 1.91% to 6.396 euros, and Banca Popolare di Sondrio grows 1.87% to 6.815 euros. Tenaris advances 1.82% to 13.12 euros, while Pirelli & C marks a rise of 1.61% to 5.44 euros. Intesa Sanpaolo grows 1.54% to 3.723 euros, Amplifon 1.46% to 28.40 euros and Prysmian 1.39% to 60.02 euros.
Stock Market 9am: Milan in positive territory
The European stock exchanges recovering at the start of the session: Frankfurt +0.42%, London +0.55%, Paris +0.33%, Milan +0.44% at 33,436 points. Investors are waiting for signals of a possible rate cut at the meeting of the Fomc (a body of the Federal Reserve that regulates the monetary policy of the country) of September, the central theme of the week together with the meeting of the ECB of September 12th.
Banks return to positive territory
After a week in which they were often in difficulty, banks opened on Piazza Affari in positive territory: Mps marks a +0.37% to 4.93 euros, with the Treasury confirming its intention to sell its shares without haste. Better performances for Nexi (+1.27% to 6.53 euros) and Unicredit (+1.89% to 36.91 euros), which is planning with the unions a package of 1,000 exits incentivized through the Solidarity Fund, with 320 exits already defined and 680 to be negotiated by 2030. Bper Banca advances by 0.94% to 4.853 euros and Mediolanum Bank closes with a +0.73% at 10.99 euros.
Among other titles, Tenaris gains 1.36% to 13.06 euros, also doing well Campari (1.13% to 8,026), Interpump Group (0.80% at 37.68 euros) and Ferrari of 0.78% to 428.60 euros.
Among the declining stocks, Erg currently records the most significant drop of the day with a loss of 0.82% to 24.32 euros. while Saipem which falls by 0.40% to 1.8605 euros. Enel loses 0.35%, settling at 7.026 euros; the company is working with the government to develop, by early 2025, regulations that will allow the use of new technologies for nuclear energy. In particular, work is being done on the creation of a newco with a foreign technology partnership for the construction of nuclear reactors in the country.
Continuing with the titles, Diasorin opens at 100.90 euros with a decrease of 0.25%. Snam also marks a slight decrease of 0.24% to 4.542 euros, and Brunello Cucinelli closes with a slight decrease of 0.06% to 83.15 euros.
What to expect this week
European stock markets opened higher after a difficult week, caused by the slowdown of the US economy, economic weakness in China and mixed PMI indices in the Eurozone. Paris gained 0.33% to 7,376 points, London 0.55% to 8,226 points, Frankfurt 0.42% to 18,379 points and Madrid 0.49% to 11,227 points.
Operators watch to US inflation, expected at +2.6% in August, and at the ECB meeting, where an interest rate cut is expected. Futures on the main European indices point to moderate increases, while Asian markets suffer due to macroeconomic weakness in China and Japan, and the decline on Wall Street.
Spread at 145 points: Wednesday’s auction details
The BTP/Bund spread remains stable at 145 basis points. It should be noted, however, that in the evening, once the markets are closed, the Treasury will provide the details of the medium-long term auction scheduled for Wednesday, which will take place a few hours before the ECB’s decision on rates.
In Wednesday’s Bot auction, the following will be offered: 7.5 billion euros in 12-month bonds, an amount lower than the 12.5 billion in maturing securities. At the European level, the weekly supply should remain stable, around 26 billion euros, according to Ifr calculations, with the possible emergence of syndicates for new issues.
