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Piazza Affari confirms the good pitch of the start in a market with a positive mood and taking advantage of the news about the new stimulus package in China to regain some themes, such as luxury and cars, more related to Chinese demand.
Support also comes from the performance of Wall Street futures, moderately positive on investor optimism about a ‘soft landing’ of the U.S. economy.
However, traders remain cautious over doubts that the monetary stimulus announced by China’s central bank is sufficient to support growth, and that the effect on Europe may be limited due to the weakness of its economy.
In fact, after yesterday’s Pmi data certified the deterioration of growth, this morning’s Ifo numbers showed a further decline in German business morale in September.
For the remainder of the session, still on the macro front, the focus in the afternoon shifts to the U.S. on consumer confidence, with a focus mainly on the employment component.
At 12:45 p.m., the FTSE Mib rises 0.6 percent. Volumes of about 820 million.
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In a well-bought sector across Europe thanks to measures to support China’s economy, Brunello Cucinelli (+4%) and Ferragamo (+5%) stand out on the Milan list, while Moncler is further behind at +0.9%. Also doing well was the smaller Aeffe +3.4%, which this morning announced the retirement of Alberta Ferretti as artistic director of the eponymous brand.
Stellantis rises 1.2%, in line with the European auto sector again on the China effect, while in the operating rooms there was no particular stir over the news about the start of the search for a successor to CEO Carlos Tavares, whose term expires in early 2026.
In the rest of the sector, Iveco is up 2.5 percent, Pirelli 1.1 percent, and Brembo 0.8 percent. Against this trend, Ferrari loses 1.4 percent.
Solid rises in crude oil prices, on expectations for a recovery in Chinese demand, escalating conflict in the Middle East, and hurricane risk in the U.S., support stocks in the sector. Saipem rises 2.3% thanks in part to a promotion to ‘Buy’ by Kepler Cheuvreux with a target price revised to €3 from €2.5.
Slightly strengthening were banking stocks after yesterday’s weakness, while fears over the possibility of the government imposing a tax on extra-profits eased. Among individual stocks, Banca Mps and Banco Bpm advanced about 2.2 percent and Bper 1.8 percent.
Unicredit gains 1.5 percent after falling more than 3 percent on the eve of the day amid a market watchful for developments in the group’s moves in Germany after yesterday’s news about strengthening in Commerzbank’s capital, a move the German government deemed ‘hostile. “This move puts UniCredit in a position of greater relative strength in possible interlocutions with counterparties,” Equita comments, adding that “on the other hand, the biggest risk is to reduce the room for maneuver to build a friendly operation.”
In the rest of the list, Stm rebounds, +2.6 percent, while on the opposite side utilities are weak with A2A, Italgas and Hera down between 0.5 percent and 1 percent.
(Andrea Mandala, edited by Gianluca Semeraro)