Stock market: Europe celebrates the vote with Wall Street, Milan +2.3%

The European stock markets consolidated their increases in the middle of the session, with the stock markets of the Old Continent reaching the highs of the day, while on Wall Street the futures took off. Milan rose by 2.3%, second only to Madrid (+2.9%), followed by Frankfurt and Paris (+1.5%) and London (+1.2%). Overseas, futures on the Nasdaq (+0.9%) set aside fears of a democratic brake on spending on artificial intelligence and follow the Dow Jones (+1.5%).

“The combination of a large Democratic majority in Congress and President Trump's declaration that he is willing to work with the opposition should act as a brake on extreme policy outcomes and reduce risk premiums.

The market will increasingly tend to interpret the executive's surprise turns as time-bound by the next presidential election or the new internal political structure," says Deutsche Bank's head of currency research, George Savarelos.

Donald Trump's slowdown on Iran, which has ruled out imminent attack plans against Tehran, contributes to market optimism. Another "good news" for Deutsche Bank, which contributes to reducing oil prices (-1% WTI to 95.1 dollars a barrel and -1.3% Brent to 102.2 dollars).

The easing of energy tensions and the brakes that the Democrats will place on Trump's fiscal policies are giving impetus to government bonds, whose yields are falling almost everywhere. Those of US Treasuries lost 3 basis points, to 4.92%, while BTPs fell by 4 points, to 4.419%.

The one who does not recover is the dollar, which is falling against all currencies. The greenback, which loses 0.5 against the euro to 1.125, is discounting fears of a slowdown in growth linked to political conflict in the USA and the scrutiny that the Democrats will want to exercise, even at the level of individual states, on data centers and artificial intelligence. The one benefiting from this is gold (+3.5% to 4,040 dollars per ounce), which is affected by the expectations of a less harsh monetary context on the interest rate front.

The banks shine on Piazza Affari, led by Unicredit and Intesa (+5.2%), ahead of Buzzi, Bper and MPS (+4.8%). Banking is the best sector in Europe (+4.4% Stoxx sector index) while semiconductors are struggling (-0.6%), waiting to understand how the outcome of the vote will impact on investments for AI. Defense stocks were also weak, benefiting from Trump's polarizing policies.