European stock exchanges, including Milan’s Piazza Affari, are trading higher, with Paris leading the gains (+1%). The positive sentiment persists despite the looming government crisis in France, where Prime Minister Bayrou has called for a vote of confidence on September 8. The spread on French government bonds has also improved, narrowing against both the German Bund and the Italian BTP.
Across the broader markets, where Frankfurt is up 0.43%, there was no negative reaction to Nvidia’s disappointing revenue outlook for the current quarter. This was largely due to optimistic comments from CEO Huang on the demand for AI chips. Wall Street futures are now all cautiously higher as markets await macro data, including the second reading of GDP figures and jobless claims.
In Milan, which gained 0.68%, standout performers include Moncler (+3.9%), Stellantis (+3.3%) on a good day for the auto sector following European registration data, Campari (+3.3%), and Cucinelli (+2.2%). At the bottom of the main index were Leonardo (-0.56%) and utility stocks.
Among smaller caps, Mfe A and B shares surged 6.8% and 6.4% respectively. The move comes as the company’s six-year pursuit of German broadcaster Prosieben (+1.5% in Frankfurt) is set to conclude with the completion of a takeover offer in early September.