Halfway through the session, the European stock exchanges show no signs of recovery after black friday which hit global markets. Milano, with a drop of 2,9% to 31.089 points, remains among the worst together with Amsterdam (-3,11%), while London, Frankfurt e Madrid fell by more than 2%. Also Wall Streett prepares for new losses, with contracts futures on Dow Jones down by 1,51%, those onS & P 500 of 1,84% and futures on Nasdaq, already affected by the sales on tech stocks, down 2,43%, with Nvidia among the most penalized stocks (-1,78%).
Investors' attention is focused on two disturbing specters: the intensification of geopolitical tensions in the Middle East and the growing fear of an economic recession in the United States. There are concerns that the Federal Reserve has delayed raising interest rates too long, potentially causing a hard landing for the economy. The climate of "economic anxiety" extends to Asia, with the Nikkei in Tokyo recording a loss of 12,4%, the most marked decline since the "Black Monday" crisis of 1987 - and amplifying the decline of the European stock markets for a real Black Monday. After the disappointing employment data in the United States, which had already triggered declines, expectations are now turned toservices index which will be published in the afternoon, and which could further aggravate the situation. Then on Thursday the data on weekly requests for unemployment benefits will arrive and it will be necessary to understand whether or not these data confirm the weakness of the American economy which could lead to a future recession. While the quarterly season Americans is coming to an end, Europe is preparing to scrutinize the accounts of banks e insurance.
In this climate of uncertainty, investors are seeking safety in safe haven assets such as gold and government bonds, abandoning riskier assets. Cryptocurrencies, and in particular Bitcoin, suffer heavy losses, while oil continues to fall and the spread between BTPs and Bunds widens.
Eurozone, businesses in stagnation after slowdown in services in July
In July, business activity in the euro zone showed signs of stagnation, according to index data SMEs (Purchasing Managers' Index) spread by S&P Global. The services PMI index fell to 51,9 points, compared to 52,8 in June, while the composite PMI index, which includes both the services and manufacturing sectors, fell to 50,2 points from 50,9, June 50th. This is the lowest level in the last five months and is approaching the neutrality threshold of XNUMX points.
THEinflation selling prices hit nine-month lows, although cost pressures remain high, suggesting possible weakness in demand. Furthermore, economic confidence fell to its lowest level in six months.
Analyzing the data for individual countries: in Spain, the composite PMI index remained at 53,4 points, the lowest value in the last six months; in Italy it fell to 50,3 points, the lowest level in the last seven months; in Germany fell to 49,1 points, indicating contraction and the lowest value in four months; finally, in France it remained at 49,1 points, however marking the highest value of the last three months.
Piazza Affari sinks with the banks, Nexi and Saipem
A Business Square, chaos reigns supreme with all titles deep down red. Banks are particularly targeted, with Mps Bank (-5,02%) at the forefront on the eve of the presentation of the half-yearly results and a review of the industrial plan. Also Banca Mediolanum (-3,98%), Bper (-3,8%), Bpm bank (3,45%) and Banca Popolare di Sondrio (3,34%) are under pressure, along with Unicredit (-4,23%) and Intesa Sanpaolo (3,27%). Also General Bank loses more than 4% despite a net collection of 408 million euros in July, which brings the annual total to 4 billion. Although the figure represents a 9% increase compared to July 2023, it is lower than the 697 million in June. The bank underlines that the tax expenditure of 226 million influenced the result. CEO Gian Maria Mossa observes an improvement in product quality and growing diversification.
Heavy losses also for energy: Enel (-2,24%) And Eni (-2,66%).
Other significant losses include nexi, down 6,05%, e STMicroelectronics, which slipped by 5,54%. Losses above 5% also for Saipem e Team. Leonardo, despite the announcement of a new order worth 236 million euros for the Italian Navy with Fincantieri, for 1,3%. The Orizzonte Sistemi Navali (Osn) joint venture, 51% controlled by Fincantieri and 49% by Leonardo, will build the fourth new generation patrol vessel with related logistical support.
In the automotive sector, Stellantis fell 3%, contributing to the negative tone of the market. Iveco it dropped 4,60%.
The other markets
On the currency front, the dollar is decreasing after the US data, while theeuro it rises above 1,09. The Bitcoin collapses below 50 thousand dollars scoring the lowest level since last February.gold remained stable at $2.450, close to all-time highs, while the Petroleum continues to fall, with Brent at 75 dollars a barrel (-1,9%) and WTI at 72 dollars (-2,05%). The gas recorded a fall of 3,68%, falling to around 35 euros per megawatt hour on the Amsterdam TTF platform.
Lo spread between BTPs and Bunds widens, reflecting the increase in risk aversion. The yield differential between the 153-year BTP and the German Bund rose above 150 points, compared to 2,08 on Friday, due to the contraction in Bund yields. The Bund yields 3,61%, while the XNUMX-year BTP yields XNUMX%.
