European stock markets slow down, focus on inflation and oil

European stock markets slow down after the uncertain opening on Wall Street, with Milan reducing increases to 0.3%, Frankfurt to 0.5% while London and Paris move just below parity. In New York the Nasdaq advanced by 0.1% while the Dow Jones fell by 0.1%.

The drop in oil prices eases pressure on government bonds without however triggering a real rebound. The WTI loses 2.3% to 90.5 dollars while Brent retreats by 1.9% to 103.2 dollars after Saudi Arabia restored half the capacity of the East-West oil pipeline, capable of supplying global markets by bypassing the Strait of Hormuz, and constant flows of crude appear to be leaving the Persian Gulf via clandestine ships.

Government bond yields are falling slightly, with the 10-year BTP dropping one basis point to 4.58% while the spread with the Bund rises by three basis points, to 98. Investors therefore remain focused on the geopolitical picture, worried that a continuation of the war between the USA and Iran will continue to fuel inflation, forcing central banks to tighten the restrictive policy towards which they are oriented.

Important indications will arrive tomorrow from the US PCE, the Fed's favorite index for measuring inflation.

In Piazza Affari, Technoprobe (+7.5%), Fincantieri (+5.6%), Avio (+3.9%) and Stm (+3.1%) are running, while Tim (-2.9%), Poste (-2.7%), Tenaris (-1.6%) and Saipem (-1.2%) are sliding, followed by the price of oil.