European stock markets sluggish mid-session amid elections in Germany and tensions in Iran

European stock markets remain sluggish at mid-session, with investors reflecting on the success of the ultra-right AfD in the regional elections in Germany and looking with concern at the situation in Iran, where tensions with the United States have caused the price of oil to rise again.

London advances by 0.2%, Paris is unchanged, Milan drops by 0.2% and Frankfurt by 0.3%. The rise in crude oil - WTI advances by 0.9% to 92.3 dollars and Brent by 1.2% to 97.5 dollars - weighs on the bond sector, which is back under pressure in Europe and Asia (today the US markets are closed for Memorial Day).

European 10-year yields rise by two-three basis points, with those of BTPs at 4.18%, one step away from the highest since November 2023, while the spread with the Bund remains stable at around 81 basis points. There is fear that the rise in oil prices may not return, fueling inflation and forcing the ECB, which will raise rates to 2.5% on Thursday, to make new interventions on the cost of money.

On Piazza Affari, Tim (-4%) and Poste (-3.8%) slipped in the last week of the takeover bid on the telephone group, while Diasorin (-2.1%), Amplifon (-2%) and Nexi (-1.7%) also did badly.

On the other side of the price list there is a leap from Lottomatica (+8.8%) which promises an increase of 200-300 million in EBITDA at the end of the next three years due to the merger with Cirsa, followed by STM (+2.2%), Avio (+2.1%) and Prysmian (+1.8%) in a positive session for technology companies. Eni also did well (+1.2%) in the wake of oil.