Concerns about a possible extension of the conflict in the Middle East are impacting certain commodities. The price of Brent crude oil has surpassed $89 per barrel, up 1.88%, reaching its highest levels since October. Since the beginning of the year, it has increased by 15.59%, partly due to production cuts confirmed in recent months by OPEC Plus. Gold, a classic safe haven asset, is also trading at record highs. The June futures are at $2,279 per ounce, showing a 21% appreciation over the last six months. This significant increase is occurring alongside persistently high interest rates, despite analysts considering the likelihood of rate cuts by both the Fed and the ECB in June.
Additionally, positive news in manufacturing has emerged. The Purchasing Managers’ Index (PMI) for Italy rose above the 50-point mark in March after 11 months, reaching 50.4 compared to February’s 48.7. This level indicates the boundary between contraction and growth. The initial estimates had stopped at 48.9, but have now been revised upwards. The values have also improved across the rest of the Eurozone, with 46.1 compared to preliminary estimates of 45.7. While Germany’s PMI remains in strong contraction, with a reading of 41.9, it is an improvement from the flash estimate of 41.6. European markets have just reopened after the Easter break, with Milan’s index updating to its highest level since 2008, showing a 0.23% increase at 34,831 points.
In Asia, Hong Kong’s index has experienced a significant increase of 2.36%, driven primarily by Xiaomi’s 8.97% rise. Xiaomi, known for its smartphones, has introduced its first electric car model, with 90,000 orders placed within the first 24 hours. Meanwhile, Wall Street futures are slightly lower, with the S&P 500 down 0.22% following a 0.20% decline the previous day. At the Milan Stock Exchange, among the main FTSE MIB index stocks, Eni is showing the largest increase at 3.09%, followed by Saipem, another oil-related stock, up 2.74%. Other notable gainers include Iveco (2.28%) and Banco BPM (2.04%), while Diasorin (-2.79%) and Brunello Cucinelli (-2.64%) are among the biggest losers, along with Azimut (-2.03%) and Amplifon (-1.75%).
Overall, the ongoing tensions in the Middle East have impacted commodity prices, with Brent crude oil and gold reaching their highest levels in months. Despite potential interest rate cuts by the Fed and ECB in June, the prices continue to rise. Positive manufacturing data in Italy and the Eurozone indicates a potential recovery in the sector. European markets are showing signs of growth, with Milan’s index reaching a decade-high. In Asia, Hong Kong’s market saw significant gains driven by Xiaomi’s entry into the electric car market. Wall Street futures are slightly lower, while the Milan Stock Exchange is experiencing mixed performances with some stocks showing gains and others reporting losses.
