The European stock exchanges are flying with the market betting on central banks ready to slow down the pace of monetary tightening. This tightening could therefore have reached its peak, a prospect that has given a strong boost to the stock exchanges, already positively oriented thanks to the drop in the price of gas (to the lowest since July) and the decline in government bond yields. The Milan Stock Exchange closed the second weekly session with a sharp rise: the Ftse Mib closed the session with a + 3.42% at 21,690 points. A result in line with the euphoric climate of the other European lists. The Cac 40 in Paris marks the best performance of the day, closing today’s trading session up 4.24% to 6,039.69 basis points. The Dax in Frankfurt also did well, following the energy plan launched by the German government to close at + 3.76% at 12,668, 17 basis points. Closures in positive territory also for the Ftse 100 in London, which grew by 2.57% to 7,086.40 basis points, and for the Ibex 35 in Madrid, which recorded + 3.12% at the end of the day.
Spread and BTP
The stock market rises are offset by a sharp decline in European government bond yields: the ten-year BTP closed with a yield down 18 basis points to 4.20%, albeit above the lows of the session, whileand the spread with the Bund of corresponding duration narrowed to 232 basis points.
Toned business square. On the industrial and financial, technological and luxury goods list. Stm posted + 5.41%, Moncler + 8.07%, Nexi + 6.43%. Interpump did well (+ 6.34%), in the Stellantis car + 3.32%, Iveco + 4.08%, Pirelli + 4.07%. The main energy sources were also highlighted (Enel + 2.44% and Eni + 2.65%) and Tim with + 3.67% at € 0.2032 per share. Among financials, Fineco gained 5.88%, Intesa + 3.11%, Unicredit 3.32%, Unipol + 3.48%. On the rest of the list, Mps should be noted which instead lost 3.38% pending news on the start of the capital increase of 2.5 billion euros. (Here the numbers of the Milan Stock Exchange, with graphs, insights , press releases and financial analyzes).
Oil and currencies
Oil, on the other hand, is gaining ground, while the OPEC + organization of producer countries is expected to meet on Wednesday 5 October. A maxi cut in output is on the horizon, the biggest since the pandemic began in 2020. In the wake of these rumors November WTI futures rise 3.61% to $ 86.65 a barrel, while Brent for December gains 3.43% to $ 91.91. On the currency, the sterling continues to rise after Prime Minister Liz Truss’s turnaround on the plan of tax cuts for the wealthy classes: the British currency is worth 1.1441 dollars (1.1330 yesterday at closing). The euro returns to target parity against the dollar at 0.9972 (from 0.9838) and is worth 144.04 yen (142.75), while the dollar / yen at 144.39 (144.71) .