European Stocks Fall as Oil Surges and France Faces Moody’s Debt Review
European stock exchanges slipped, pressured by rising energy costs and escalating geopolitical tensions, while Milan’s FTSE MIB reversed early gains to enter negative territory. Il Sole 24 ORE reported that investors are weighing potential U.S. political maneuvers regarding Iran following midterm elections, which drove crude oil prices higher.
Luxury firms reeled from weak figures announced by Kering, which sent the French group’s shares tumbling and dragged down sector peers like Moncler and Brunello Cucinelli, according to reporting by la Repubblica. Concurrently, Il Sole 24 ORE noted that benchmark yields on French 10-year OAT bonds remained above 5% with spreads widening, ahead of a sovereign debt review from Moody’s.
Eni Posts Higher Q3 Net Profit and Announces Special Dividend
Eni countered the broader market downturn at Piazza Affari, climbing after the release of third-quarter financial results that beat analyst expectations. The Italian energy major posted an adjusted net profit of 2.8 billion euros for the July-September period, more than doubling its performance from the same timeframe last year. For the first nine months of the fiscal year, Eni’s net profit surged 70% to 6.43 billion euros.
Bolstered by improved full-year 2026 cash flow projections reaching 16.5 billion euros, company leadership approved a special dividend of 0.46 euro per share, totaling roughly 1.3 billion euros, payable in December. Management also expanded its share buyback program by 12% to 3.8 billion euros. Financial institutions responded with recommendations; Banca Akros maintained a ‘Buy’ rating with a target price of 26 euros, whereas Intermonte issued a ‘Neutral’ stance.
Energy Markets Surge Amid Middle East Supply Fears
Commodity prices escalated significantly across international trading floors. West Texas Intermediate (WTI) crude climbed past 100 dollars per barrel, while North Sea Brent hovered near 114 dollars. Natural gas futures surpassed 90 euros per megawatt-hour. Milano Finanza noted that traders continued to price in an expanding geopolitical risk premium linked to ongoing conflicts in the Persian Gulf and the Strait of Hormuz.
Currency markets reflected the defensive posture of global investors. The euro remained above 1.12 against the U.S. dollar, closing its previous session at 1.1201, while the Japanese yen strengthened as a traditional safe-haven asset. Meanwhile, the Italian 10-year BTP yield stood at 4.59% with the corresponding spread resting above 125 basis points, according to Il Sole 24 ORE.
Sovereign Debt Pressures Mount in France
Attention remained concentrated on Paris as market participants braced for Moody’s rating decision on French public debt. Yields on French 10-year bonds held firm near 5.06%, with yield spreads touching 174 basis points. Teleborsa previously observed that French OAT yields hitting the 5% threshold marked a high not seen in over two decades, heightening fiscal anxiety across the eurozone bond market.
