After four consecutive rises, today another Friday of passion for the European stock exchanges arrives. By mid-morning Milan collapses by 2,24%. Strong decreases also for Paris (-1,48%), Frankfurt (-1,22%) and London (-1,04%).
To weigh on the price lists is above all the ax of the American agency Fitch, which struck yesterday evening on Spain, cutting the rating on sovereign debt by even three steps, to the BBB level.
Another blow to Piazza Affari came from Istat data on industrial production, which plunged by 9,2% on an annual basis in April: the worst figure since November 2009. Compared to March, production fell by 1,9%, while the index dropped on average for the February-April quarter by 2,5% compared to the immediately preceding three months.
Heavy banks on the Ftse Mib: the worst losses are those of MPS (-5,18%), Banco Popolare (-4,67%), Mediobanca (-4,65%) And Where's Banca (-4,49%). Bad too Understanding (-4,06%) And Unicredit (-4,59%).
The spread between the 444-year BTPs and the corresponding German Bunds, it rose again to 433 basis points, after closing yesterday evening at 10. The new level of the differential corresponds to interest rates on 5,75-year Italian bonds equal to XNUMX%.
“We are in typical terrain where speculation can rage – commented a trader interviewed by Reuters -. Fitch has downgraded Spain's rating and the central banks have passed the ball to politics to find real solutions to the crisis, meanwhile the Italy/Spain debt spread remains at alarming levels and Italian financials are sinking due to country risk”.
On the markets there is also the fear that the rating agencies will go back to downgrading Rome after having targeted Madrid.
On the currency front, the euro is indicated at 1,2487 dollars (1,2560 yesterday), 99 yen (99,95) and 0,8083 pounds (0,8070). It's in sharp decline Petroleum: the July WTI contract drops by 2,44% to 82,75 dollars a barrel.
