European Stocks Lag as Wall Street Takes a Holiday
The European stock market is sluggish today without guidance from Wall Street, which is closed for Labor Day. The FTSE MIB in Milan is trading just above break-even, while the CAC 40 in Paris and DAX 40 in Frankfurt are also muted. Frankfurt is assessing the victory of the far-right AfD party in German regional elections, which could jeopardize Chancellor Friedrich Merz's government.
The sharp slowdown in industrial production is also weighing on investors' minds, with a 1.1% drop in July and 1.6% year-over-year decline. The European Central Bank meeting next Thursday will be closely watched, as investors expect another interest rate hike of 25 basis points to bring the deposit rate to 2.5%. US inflation figures released on Friday will also guide the Fed's monetary policy decisions.
Oil prices are rising due to ongoing tensions in the Middle East and Ukraine-Russia conflict. Brent crude has increased by 1.49% to $97.71 per barrel, while WTI is up 1.44% at $92.80. Gas prices in Amsterdam have risen 3% to €74.13 per megawatt-hour.
In the share market, Lottomatica Group is performing well, with estimates of incremental online EBITDA at full capacity between €200 million and €300 million. Moncler has seen its target price raised by Rothschild from 54 to 56 euros, while Stmicroelectronics is among the top performers in the tech sector.