Difficult session for the European stock exchanges which are moving away from the lows of the day, but are still proceeding in negative territory after the sharp decline of Wall Street in the night and the collapse of the Tokyo Nikkei which closed down 4,2% this morning, dragged down by the collapse of Nvidia (-9,5%) which continues to weigh on the entire global tech sector. The loss of 279 billion dollars of capitalization of the leading artificial intelligence company has held back technology stocks in Asia and this is now cascading down to stocks in Europe. Also weighing down the price lists is the China: Manufacturing activity in the Asian giant fell to a six-month low in August, weighing on luxury goods companies in Europe such as LVMH Holdings (-2,8%), Richemont (-5,58%) And Kering (-1,3%).
At a macro level, waiting for the numbers on USA work scheduled for Friday, September 6, which could guide the Fed on the amount of easing planned this month, the markets' attention is focused on the Federal Reserve, which will publish its Beige Book, or the document describing the general economic picture of the United States, which could confirm or dispel doubts about the slowdown in the United States. Meanwhile, in the Eurozone, the tertiary sector data: According to S&P Global, the PMI for services rose to 52,9 points in August from 51,9 in July. In Italy, the figure slowed to 51,4 points from 51,7 in the previous month.
Stock Market: Europe Down After Tokyo, Nvidia Collapses
What happened yesterday on the Nasdaq and this morning in Tokyo weighs on the European stock markets, with the pan-European index Stoxx 600 which loses 1% and the Stoxx volatility index at +12,5% after hitting its highest level since August 9.
On the continental stock market, the performances of Asml Holding, which marks -5,4% after the downgrade of the title by UBS and the collapse of Nvidia yesterday, and Commerzbank (-2%) after yesterday The German government has said it wants to reduce its participation in the credit institution.
In this context, the worst stock market is Amsterdam, which at mid-day gave up 1,38%. Also bad Paris (-0,87%) in view of news on the possible prime minister, and Frankfurt (-0,69%). Growth in Germany's services sector slowed for the third consecutive month in August, further demonstrating that Europe's largest economy is losing momentum. Bad Madrid (-0,7%) and, outside the EU, London (-0,57%). In the USA, futures are the downs: -0,4% the Nasdaq and -0,3% the S&P 500.
Piazza Affari limits the damage: luxury and tech suffer
In the middle of the day Business Square moves away from the lows of the day and tries to limit the damage and loses 0,42% to 33.720 basis points, weighed down by luxury and tech.
After Nvidia's collapse, among the worst stocks of the day there is stmicroelectronics (-2,1%). Luxury is heavy, with Moncler (-2,7%), Brunello Cucinelli (-1,38%), Salvatore Ferragamo (-2,3%).
Countering the banks: they are recovering ground Pop Sondrio (+1,48%) and Bank Mediolanum (+ 1%). FinecoBank, Intesa Sanpaolo e Bpm bank record increases of around half a percentage point. On parity Ps with investors returning to consider further scenarios for the sale of the stake by the Ministry of Economy and Finance following some press leaks.
On the Milanese stock market the pink jersey is Saipem (+3,25%), which he announced the signing of two offshore contracts in Saudi Arabia for a total value of approximately 1 billion dollars.
Oil raises its head again
After the declines of the day before with Brent losing up to 5% and WTI dangerously close to the 70 dollar threshold, the Petroleum tries to restart: European Brent November gains half a point to 74,13 dollars a barrel and WTI October marks +0,44% to 70,48 dollars. Investors continue to analyze the signs of weakness in the global economy, the weak demand for oil and the expectations of an end to the dispute blocking Libyan exports. This represents a challenge for OPEC +, which last week, according to Reuters, was still willing to proceed with an increase in oil production planned starting in October. A further increase in supply could in fact push prices even lower.
There was little movement on the currency exchange exchange euro Dollar, which stands at 1,053, while on bonds, it spread is slightly down at 146 basis points, with the yield on the benchmark BTP at 3,7%.