Piazza Affari Rallies: Banks Lead the Market
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Piazza Affari outperforms other European markets thanks to the banking sector and gains among blue-chip stocks. Focus also on political crisis in France.
Piazza Affari Soars Thanks to Banks
Piazza Affari posted a positive session, outperforming other European markets. The rally was driven primarily by the banking sector, with strong gains in stocks like Unicredit and Banca Popolare di Sondrio, which rose by 4.80%. Market speculation is high regarding potential mergers and acquisitions, with UniCredit at the center of speculation about a possible bid for Banco BPM. Analysts at Deutsche Bank and Jefferies have also raised price targets for most Italian banks, further boosting market optimism.
Focus on Luxury Stocks and Ferragamo
Another sector that caught attention was luxury, with Salvatore Ferragamo announcing a write-down of 70-90 million euros in its 2024 financial statements. However, this news did not shake the market, with analysts maintaining a positive outlook on the sector. UBS also revised its recommendations on European luxury stocks, providing an additional boost to the sector.
Political Crisis in France: Barnier Government in Trouble
Weighing on European markets is the growing political uncertainty in France. Prime Minister Michel Barnier used Article 49.3 of the French Constitution to push through part of the 2025 budget without a parliamentary vote. This move has triggered two motions of no confidence, one from the Rassemblement National and another from the radical left. The vote, scheduled for December 4th, could lead to serious political instability.
Macroeconomic Data and Market Impact
Today, no major economic data was released in Europe, while in the US, investors are awaiting the October JOLTS report, which is expected to show a slight increase in job openings. These figures could influence expectations for the Federal Reserve's next meeting, with Federal Reserve Governor Christopher Waller already expressing support for a possible rate cut in December.
The EUR/USD remains stable at 1.052, while gold held steady at $2,641 per ounce. Crude oil (Light Sweet Crude) continued its rise, reaching $69.08 per barrel.
Spread Rises, 10-Year BTP Yield at 3.25%
Italy’s bond market saw the spread widen, reaching 121 basis points, with the 10-year BTP yield rising to 3.25%. This reflects ongoing political uncertainty and concerns about Italy's fiscal outlook.
European Market Performance
Among the major European markets, Piazza Affari was the top performer, with the FTSE MIB gaining 1.16%. London (+0.73%) and Paris (+0.35%) also showed positive movements, while Frankfurt was almost unchanged (+0.2%).
Among the blue-chip stocks, besides Banca Popolare di Sondrio, Stellantis (+2.61%) and Saipem (+1.81%) posted solid gains. On the downside, Nexi dropped by 2.60%.
Mid-Cap Stocks See Strong Gains
Among mid-cap stocks, Ferragamo led the charge with a 6.21% increase, followed by Digital Value (+4.66%) and GVS (+3.14%). On the flip side, Carel Industries saw heavy selling, dropping 3.33%, while Pharmanutra and The Italian Sea Group lost 2.68% and 2.27%, respectively.
The Italian market showed signs of resilience, but both internal and external political uncertainty continue to keep volatility high. Investors remain cautious, awaiting further developments on both the macroeconomic and political fronts.
Piazza Affari Soars Thanks to Banks
Piazza Affari posted a positive session, outperforming other European markets. The rally was driven primarily by the banking sector, with strong gains in stocks like Unicredit and Banca Popolare di Sondrio, which rose by 4.80%. Market speculation is high regarding potential mergers and acquisitions, with UniCredit at the center of speculation about a possible bid for Banco BPM. Analysts at Deutsche Bank and Jefferies have also raised price targets for most Italian banks, further boosting market optimism.
Focus on Luxury Stocks and Ferragamo
Another sector that caught attention was luxury, with Salvatore Ferragamo announcing a write-down of 70-90 million euros in its 2024 financial statements. However, this news did not shake the market, with analysts maintaining a positive outlook on the sector. UBS also revised its recommendations on European luxury stocks, providing an additional boost to the sector.
Political Crisis in France: Barnier Government in Trouble
Weighing on European markets is the growing political uncertainty in France. Prime Minister Michel Barnier used Article 49.3 of the French Constitution to push through part of the 2025 budget without a parliamentary vote. This move has triggered two motions of no confidence, one from the Rassemblement National and another from the radical left. The vote, scheduled for December 4th, could lead to serious political instability.
Macroeconomic Data and Market Impact
Today, no major economic data was released in Europe, while in the US, investors are awaiting the October JOLTS report, which is expected to show a slight increase in job openings. These figures could influence expectations for the Federal Reserve's next meeting, with Federal Reserve Governor Christopher Waller already expressing support for a possible rate cut in December.
The EUR/USD remains stable at 1.052, while gold held steady at $2,641 per ounce. Crude oil (Light Sweet Crude) continued its rise, reaching $69.08 per barrel.
Spread Rises, 10-Year BTP Yield at 3.25%
Italy’s bond market saw the spread widen, reaching 121 basis points, with the 10-year BTP yield rising to 3.25%. This reflects ongoing political uncertainty and concerns about Italy's fiscal outlook.
European Market Performance
Among the major European markets, Piazza Affari was the top performer, with the FTSE MIB gaining 1.16%. London (+0.73%) and Paris (+0.35%) also showed positive movements, while Frankfurt was almost unchanged (+0.2%).
Among the blue-chip stocks, besides Banca Popolare di Sondrio, Stellantis (+2.61%) and Saipem (+1.81%) posted solid gains. On the downside, Nexi dropped by 2.60%.
Mid-Cap Stocks See Strong Gains
Among mid-cap stocks, Ferragamo led the charge with a 6.21% increase, followed by Digital Value (+4.66%) and GVS (+3.14%). On the flip side, Carel Industries saw heavy selling, dropping 3.33%, while Pharmanutra and The Italian Sea Group lost 2.68% and 2.27%, respectively.
The Italian market showed signs of resilience, but both internal and external political uncertainty continue to keep volatility high. Investors remain cautious, awaiting further developments on both the macroeconomic and political fronts.