European stock markets continue to rise following a positive Wall Street opening, with falling oil prices and the Fed's firm stance on inflation making investors optimistic that prices can be brought back under control.
London is up 1%, Milan and Frankfurt 0.9%, Paris 0.8%, while in New York the Nasdaq is up 1.4% and the S&P 500 1%. Bonds are breathing easier, with yields on 10-year Treasuries down 8 basis points to 4.94%, and European sovereign debt making cautious gains (BTP yields are down around 3 points to 4.33%).
The Fed's commitment to fighting inflation, with the rate cut announced yesterday and the expectation of another reduction before the end of 2026, has been compounded by a sharp drop in oil prices, fuelled by news of the partial restoration, within a matter of days, of the Saudi east-west pipeline that was knocked out a few days ago by Iran-linked militants. Brent crude is thus down 2.8% at $102.88 a barrel, while WTI falls 1.8% to $100.5.
On the Milan stock exchange, Poste (+3.4%), Stellantis (+3%), Cucinelli (+2.8%), Tim (+2.7%) and Fincantieri (+2.3%) are surging, while Eni (-1.6%), Campari (-0.9%) and Buzzi (-0.5%) are slipping. Outside the FTSE MIB, Pininfarina is soaring (+18.2% to €1 per share), aligning with the price of the tender offer launched by Pininfarina Holdings.
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