European stock markets reduce their initial decline, with investors reducing fears over the geopolitical crisis in the Middle East. Markets showed a marked improvement after Iran scaled back Israel’s retaliatory attack. Tensions on raw materials are easing with the price of oil and gas falling. The Stoxx 600 area index lost 0.4%. Downturns in London and Madrid and Frankfurt (-0.6%), Paris and Milan (-0.3%). The main price lists are weighed down by energy (-1.5%), with oil falling. The WTI loses 0.6% to 82.2 dollars a barrel and Brent drops to 86.6 dollars (-0.5%). Among the equity sectors, banks (-0.7%) and luxury goods (-0.4%) also fell. Utilities are on the rise (+0.5%), with the price of gas falling to 31.8 euros per megawatt hour (-1.6%). Government bond yields fell slightly.
The spread between BTPs and Bunds stands at 142 points, with the Italian 10-year rate falling by 4 basis points to 3.87%. Gold moved little, standing at 2,381 dollars per ounce (-0.1%). On the currency front, the euro showed little change at 1.0646 against the dollar. Saipem slips on the Piazza Affari (-3.1%). Negative session also for Nexi and Tenaris (-1.9%) and Eni (-1.3%). The banks were weak with Mps (-0.9%), Intesa (-0.4%), Banco Bpm (-0.3%) and Bper (-0.1%). Tim turns positive (+0.3%), after a morning in negative territory. Terna (+1.4%) and Amplifon (+1%) stand out. Purchases on utilities with Enel (+0.7%), Erg (+0.6%) and A2a (+0.5%).
The price of gas opens sharply higher at 33.8 euros
The price of gas opens sharply higher with the crisis in the Middle East. The worst scenario, according to analysts, could be Iran’s closure of the Strait of Hormuz, a key channel through which 20% of commercial LNG traffic passes. In Amsterdam, gas prices gained 4.6% to 33.8 euros per megawatt hour
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