European stock markets continue to decline ahead of the ECB meeting, as the crisis in the Middle East between the US and Iran persists along with the blockade of the Strait of Hormuz. Also under scrutiny is the issue of the sustainability of investments in artificial intelligence and data centre development.
The Stoxx 600 index is down 0.7%, ahead of Wall Street's opening, where futures are negative. Among the Old Continent's markets, Milan (-1.9%) is the worst performer. Paris (-1.1%), Frankfurt and Madrid (-0.6%), and London (-0.2%) are also faring poorly. Markets are weighed down by the technology sector (-1.6%) and luxury (-1.9%). Utilities are also struggling (-0.8%), with gas prices turning lower. In Amsterdam, prices fell 1.5% to €61.58 per megawatt-hour. Energy is bucking the trend (+2.2%), with oil continuing its rally. WTI is up 4.4% to $90.67 per barrel, while Brent stands at $97.77 (+5%).
Government bonds are slightly higher. The spread between BTPs and Bunds stands at 82 basis points, with the yield on Italian ten-year bonds at 4.01% and the German equivalent at 3.19%. Gold prices are falling, down 0.2% to $4,084 per ounce. On the foreign exchange market, the euro is declining to 1.1398 against the dollar.
On the Milan stock exchange, STM is tumbling (-14%) following second-quarter results and forecasts that disappointed the market. Moncler (-7.3%) and Unicredit (-3.7%) are also struggling after their half-year results. Amplifon (+3.6%) is shining, having been upgraded by Citi analysts. Eni (+2.6%) and Leonardo (+2.2%) are both higher.
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