European stock markets opened with little change, with investors closely watching for the Eurozone's July inflation data, due at 1100 CEST. This comes amidst ongoing concerns about elevated bond yields and increasing oil prices. ECB Chief Economist Philip Lane recently stated that a 3% inflation rate in the region is still "too high," indicating potential shifts in interest rate policies.
Several market segments saw varied performance. The oil sector, including Saipem, Tenaris, and Eni, showed strong gains, rising 1.4%, 1.0%, and 0.8% respectively. Conversely, semiconductor stocks linked to artificial intelligence experienced a fresh wave of selling pressure, with STMicroelectronics at the bottom of the index, down 1.1%.
In the UK, consumer inflation accelerated to 2.9% year-over-year in July, up from 2.6% in June, aligning with market expectations. Major European indices showed mixed movements, with London's FTSE 100 slightly lower, Paris' CAC 40 gaining 0.2%, and Frankfurt's DAX 40 marginally in the red. The FTSE MIB in Italy opened down 0.1% at 52,985.740.
Company-specific news also influenced market sentiment. Enel confirmed strong 2026 ordinary EBITDA forecasts of €23.1-23.6 billion and a net profit of €7.1-7.3 billion, with an increased earnings-per-share forecast of approximately €0.74. JPMorgan adjusted its rating for Assicurazioni Generali to 'neutral' from 'overweight', although it raised its 2027 earnings-per-share estimate to €3.57 from €3.54 and its target price to €46 from €44. Banca Monte dei Paschi di Siena was asked by Consob to assess the market relevance of information regarding a potential integration with Banco BPM.
Commodity prices saw Brent crude trading at $91.71 a barrel, a slight decrease from Tuesday's close, while gold was at $4,349.46 an ounce. In currency markets, the euro traded at $1.1594 and the British pound at $1.3549.
