European stock indices closed lower today, with significant declines noted across major markets as investors awaited upcoming quarterly earnings reports. The Chinese government’s decision to lower its key lending rates by 25 basis points failed to stimulate trading, as it was anticipated in advance.
In Italy, the Ministry of Economy and Finance (MEF) successfully placed a maximum total of €3 billion in two BTP bonds maturing in 2034 and 2037, simultaneously repurchasing five other securities. Fitch Ratings affirmed Italy’s 'BBB' rating, upgrading its outlook from stable to positive due to improved fiscal indicators, while S&P maintained the 'BBB' rating with a stable outlook, citing ongoing concerns over high public debt expected to rise until 2027 due to the Superbonus program.
The Euro to US Dollar exchange rate experienced a slight decline of 0.27%. Gold prices saw a modest increase, reaching $2,734 per ounce, while crude oil prices surged by 2.25%.
The Italian spread widened, now at +119 basis points, reflecting a significant increase of 7 basis points. The yield on the 10-year BTP stood at 3.44%.
Among European stock markets, Frankfurt fell by 0.84%, London dipped by 0.21%, and Paris declined by 0.88%. The Milan stock exchange continued to trade slightly below parity, with the FTSE MIB down 0.59%, ending a three-day gaining streak. The FTSE Italia All-Share index also retreated to 37,144 points.
In the Italian market, Saipem (+2.08%), ENI (+1.55%), Azimut (+1.43%), and Tenaris (+0.96%) were among the few gainers. In contrast, Banca MPS and Brunello Cucinelli both recorded notable losses of 1.99%.
Other significant declines included Banca Popolare di Sondrio (-1.45%) and ERG (-1.40%).
Among mid-cap stocks, Digital Value (+8.61%), Acea (+1.63%), D'Amico (+0.89%), and Comer Industries (+0.60%) performed well, while BFF Bank saw the steepest decline at -3.38%.
Overall, market sentiment remains cautious amidst ongoing economic uncertainties.