It will be there ECB Today marks the start of a series of monetary policy meetings around the world, all of which are expected to involve monetary tightening to address rising inflation due to energy prices, while in Middle East the war rages with the opening of a second frontNext week it will be the Fed and the Bank of Japan's turn. While we wait for the president's speech, Christine Lagarge, the euro remained stable at $1,1637, while futures European stocks indicate a slightly higher opening. Wall Street Instead, it closed yesterday mostly down, with only tech sector which is holding up. Widespread declines also on Asian stock markets. But attention is mainly on the rise in Oil prices.
Escalating war in the Middle East pushes Brent crude higher, fueling inflation fears
The war between the United States and Israel against Iran, now in its seventh month, has fueled fears of a broader regional conflict, with Iran declaring its readiness for a more intense war. Clashes have escalated. between Saudi Arabia and the Houthis in Yemen, an second theater of war which threatens global energy supplies from the Middle East. This pushed Brent crude, which has become the benchmark for tensions, up to $101,11 a barrel yesterday and today it remains stable. above 100 dollars, leveraging inflation.
Wall Street fell yesterday, but tech stocks held firm. Bonds are under pressure after Bessent's disappointing stock price.
Wall Street closed down yesterday, in a heavy geopolitical context, but the shares were also sold US government bonds with the consequent rising yields. Lo S & P 500 closed at -0,48%, Nasdaq at -0,64%, Dow at -0,77%. The ones that held up were still the tech: I'semiconductor index Philadelphia rose 0,37%, with Advanced Micro Devices which gained 3%. Meta jumped more than 6% and limited the decline of the S&P 500 after the social media company launched its long-awaited AI assistant, which can autonomously send emails, sell cars, or make travel reservations on behalf of users. On the contrary, A fell 2,3% after Google's parent company announced it will invest at least $15,1 billion in artificial intelligence infrastructure in Finland over the next two years, including a major nuclear power deal. Apple closed down 0,3% after the launch of its first smartphone under new CEO John Ternus.
Il return of the U.S. Treasury benchmark 10 years rose to its highest level since November 2023 after the Treasury Department announced plans to purchase up to $6 billion in government bonds with maturities between 10 and 20 years. Some analysts expected a larger purchase, in the range of $8–10 billion. Higher yields on low-risk government bonds make holding stocks less attractive for investors.
The U.S. Producer Price Index, due out today, and the U.S. Consumer Price Index, due out tomorrow, will be in focus for clues about the path of U.S. interest rates. Federal ReserveMarket participants estimate a 60% chance that the Fed will raise interest rates at next week's monetary policy meeting.
Asia falls, but yen stable
Asian stocks fell this morning, following the decline in US markets, with the MSCI's broadest index of Asia-Pacific equities falling 0,7%. Japan's Nikkei fell 0,4%, while the Kospi fell 0,2%. Meanwhile, the 10-year Treasury yield held near Wednesday's high of 4,85%, a level not seen since the end of 2023, as the U.S. government's plan to purchase up to $6 billion in long-dated debt disappointed some investors who had expected a larger increase.
U.S. 10-year Treasury yields held steady at 4,8407% after hitting their highest level since 2023 in the previous session, following the Treasury Department's announcement of a $6 billion buyback program for longer-dated bonds, news that disappointed some investors.
Lo yen The Japanese yen stands at 153,63 per US dollar, after strengthening 4% in September. The sharp rise was driven by growing expectations of a faster rate hike by the BOJ, traders unwinding short positions on the Japanese yen, and early signs of a potential wave of Japanese capital repatriation.
European stocks opened slightly higher. At the Milan Stock Exchange, eyes were on Intesa Sanpaolo, MPS, and Webuild.
European stock markets are expected to open slightly higher: the Eurostoxx50 future is up 0,32%.
Intesa Sanpaolo will convene an extraordinary meeting at the New Management Center in Turin to ask its shareholders to approve the capital increase needed to finance the €30 billion takeover bid launched in June for Monte dei Paschi.
LeonardoBNP Paribas raised its rating from Neutral to Outperform, increasing its target price to 67 from 54 euros.
Ps MPS has filed with Consob the documents for the two offers for Banco BPM and Banca Generali, both of which are voluntary public exchange offers for all the ordinary shares of the interested companies. The filing now opens the supervisory authority's investigation phase, after which the documents may be published. For Banco BPM, MPS will award 1,567 of its own newly issued shares for each share tendered. For Banca Generali, the ratio is 6,958 new MPS shares for each share tendered.
stmApproximately 80% of the semiconductor manufacturer's $2 billion-plus AI data center revenues it aims to achieve by 2027 will come from chips used for data transfer over fiber optic links. Citi has confirmed its buy rating and price target of €65 on the stock.
LottomaticaBerenberg confirmed its buy rating and a price target of €31,50 after the gaming company reached an agreement with Spanish company Cirsa and LHMC Midco, a company controlled by funds managed by Blackstone, for an all-share merger.
Classic Ferrari for saleMorgan Stanley raised its target price from 388 to 395 euros, reiterating its overweight rating.
WebuildThe construction group confirmed its 2026 guidance. The company filed a complaint with Consob for disseminating false and misleading information, which distorted its stock price. It previously denied press reports that it had requested €22 billion from the government for additional costs related to major infrastructure projects.
