The flight from US banks, which yesterday overwhelmed Wall Street, has today infected the Asian and European price lists. Today's closure is thus in sharp decline also in the Old Continent e Milano it is among the worst places, with a loss of 1,55%, which brings it back to 27.281 basis points, due to the specific weight of the credit sector on the Ftse Mib.
Not far away they stop Madrid -1,46% and London -1,68%, as well as Zurich -1,57% Frankfurt -1,31% Amsterdam -1,35% and Paris -1,3%.
The declines are far from the lows of the day, thanks to the fact that Wall Street tried to turn around late in the morning after a sour start following a labor report showing lower inflationary pressures.
However, volatility is very high and the American indices are already in the red again.
High Volatility Wall Street; the job report in chiaroscuro
The trend is very volatile on Wall Street and Silicon Valley Bank, which yesterday (-60%) triggered a domino effect on other banks, was shut down by regulators and appointed the Federal Deposit Insurance Corporation as bankruptcy trustee.
In a context where emotion on the Stock Exchange is high and many investors are collecting debt securities (which have gained a lot in recent months), the eagerly awaited report on the work non-agricultural use, so important for the Fed. On the one hand, the jobs created have turned out to be more than expected, but on the other, inflationary pressures have decreased, so much so that the dollar is down and US government bonds are currently well bought.
Basically, in February, 311 jobs were created against expectations of 225; however, wages rose 0,2% month-over-month, below the 0,4% forecast (+4,62% year-over-year, vs. expectations at +4,8%). The unemployment rate rose beyond estimates, to 3,6%, two tenths of a point more than the previous month.
The framework is favoring bond purchases, with i Terasury in great dust and the ten-year which sees a drop in yield to 3,69%.
Il dollar is downhill from the goals achieved and theeuro it is again approaching a change around 1,07, with a gain of about one percentage point.
Il Petroleum remains frozen, in a week to forget.
The rebound continues gas, which today on the Square in Amsterdam has returned close to 50 euros per Mwh.
US banks still in the crosshairs
The big US banks seem to be looking for blackmail and Jp Morgan is currently one of the best stocks in the world Dow Jones.
Yesterday, the panic in the sector was the fact that SV bank, a California lender heavily used by Silicon Valley technology companies, said it had lost $1,8 billion on losses linked to the sale of bonds . Necessary alienation as a result of a higher-than-expected drop in deposits. Investors' concern is that other banks will follow this path because they all have stakes in long-term securities, which are no longer profitable in the new era of rising rates.
The collapse of Silicon Valley Bank came among other things after the Silvergate bankruptcy Banks, another credit institution on the west coast, linked to the world of cryptocurrencies.
For Bloomberg, the basis of both crisis (of Svb and Silvergate) there is one issue that threatens to become structural: the increase in interest rates which has left banks laden with low-interest bonds that cannot be sold quickly without losses.
The US Treasury Secretary spoke on the matter today, Janet Yellen, saying he is "closely monitoring" the situation of Silicon Valley Bank and "a few other banks". "When banks experience financial losses, it is and should be a cause for concern." SVB is said to be in talks about its sale, after attempts to raise capital by dell
Seven blue chips are saved in Piazza Affari
Let's start with the good news: seven blue chips were saved in today's storm Business Square and some sailed decidedly against the trend. It is the case of Leonardo which closes with a gain of 2,85%, after the release of accounts and guidance, with orders better than expected.
It is appreciated Buzzi, +2,99%, which rebounded after the losses of the day before and rejected the accusations of the National Agency for the Prevention of Corruption (Napc), which included the cement group in the 'blacklist' for its activities in Russia .
Well the utilities: Italgas + 1,65% Terna + 0,34% Enel +0,13%. They also go up Moncler +0,84% ed Eni + 0,28%.
The bombardment of sales, on the other hand, hit managed savings once again: Finecobank -4,58% Banking Mediolanum -3,52% Azimuth -3,2% General Bank -3,02%.
All lenders' titles are in deep red, starting with Bper -4,47% Unicredit -3,122% Bpm bank -2,97% Understanding -1,95%.
Italian institutes are in good company at the European level, where hbsc leaves 4,78% on the ground e Deutsche Bank 6,93%, just to name a few.
The climate has been unfavorable to the industry: Prysmian -4,28% Cnh -3,9%.
Spreads up but rates down
Risk aversion revived German government bonds, but Italian paper also finished a good session. Yields, in fact, show a decrease, to 4,19% for the ten-year BTP and 2,47% for the same German term. The spread however it widened to 172 basis points (+2,63%).
Meanwhile, primary interest rates continue to rise. The Treasury placed 6,5 billion euro in annual BOT auctions this morning with a yield rising to 3,613%, up 43 basis points. The amount requested by investors for the security, which expires on 14 March 2023, was equal to 9,19 billion euros.
