The euro collapses to a 20-year low and the European price lists sink, in the umpteenth creepy session of this 2022 which was supposed to be the year of the post-pandemic rebirth. It also opens badly Wall Street, after the long 4th of July weekend, due to the growing risks of a recession that cripple even oil, which is at the bottom right now. In New York, the auto sector suffers, with Tesla and Stellantis, while Ford reaches its lowest level for the year after a drop in sales in the second quarter.
In Europe, on the other hand, gas prices go up, due to the strikes coming in the sector in Norway, which could lead to a 60% reduction in exports next weekend, after the cuts from Russia that have already rattled the markets a lot. All while the SMEs of the euro area certify a slowdown in growth in the month of June.
Piazza Affari black mesh, Europe in red
While waiting for the Draghi-Conte meeting, which will be held tomorrow and which will be able to say something about the future tenure of the government, Business Square closes in the black and loses 2,99%, without being able to defend the 21 points, landing at 20.705 basis points weighted by industrial stocks, banks, asset management, oil. I'm in a bad mood London -2,9% Paris -2,68% Frankfurt -2,91% Madrid -2,42% Amsterdam -2,33%.
The euro undercut against the dollar around 1,025.
Il Petroleum Brent type falls by 8,2%% to 104,2 dollars a barrel. Gas soared in the morning to a maximum of 175 euros per megawatt hour.
Bund purchases; the spread goes up
In search of safe-haven assets, investors turn to Bunds, so the price goes up spread.
The yields of ten-year Italian and German bonds are down, but the differential widens to 199 basis points (+4,29%), with a rate of 3,17% for the BTP and 1,18% for the Bund .
Fear for gas in Europe with strikes in Norway
After a cautiously optimistic start, given the possibility that the US will remove some tariffs against China, the continental lists have begun to lose with the news from Norway.
Europe, including Great Britain, now depends for a quarter on Norwegian gas supplies, according to estimates by the Norsk Olje&Gass association which brings together companies in the sector.
The strike, which began today, which has already resulted in the shutdown of three oil and gas fields in the North Sea, could lead to a reduction of about 60% of Norwegian gas exports and more than 3340 thousand barrels of oil - says the organization – if the workers union carries out the threat to extend the clash also to the weekend”.
Gas prices go up and the risk of recession thus becomes more substantial, even in the face of declining macro data.
Eurozone services PMI down
The euro zone's final composite PMI, by S&P Global, seen as a good indicator of the health of the economy, fell to a 16-month low at 52,0 points in June from 54,8 in May, just above the preliminary estimate of 51,9. This, according to the research center, increases the probability of an economic decline in the third quarter. “The manufacturing sector is already in decline, for the first time in two years, and the services sector has lost sharply its growth momentum due to the cost-of-living crisis. Household spending on non-essential goods and services has come under pressure due to rising prices”.
The PMI of services - the bloc's dominant sector - fell to 53,0 from 56,1.
Central banks to the test
Central banks remain under observation, to see how they will deal with the problem of agalloping inflation combined with an economic slowdown. Looking forward to reading the minutes of the last Fed meeting tomorrow, today the Bank of England warns that the economic outlook for Britain and the world has worsened. Central banks therefore need to build up capital buffers to ensure they can weather the storm. Meanwhile, the Australian central bank raises interest rates for the third consecutive month, also taking into account the risk of triggering a recession in order to curb inflation.
And prices continue to run around the world, in South Korea, there was inflation in June that hasn't been seen for 24 years.
In Piazza Affari the oil prices are deflating
Let's hope that oxygen tanks won't be needed in the near future for Piazza Affari, which continues to break down one psychological threshold after another. In the meantime, today, the oil stocks weigh on the list, which deflate quite a bit from the gains achieved with the oil increases of recent months: Tenaris leaves 8,25% on the ground, Eni 5,79%. Actions Saipem, lose 2,83%, while the rights, on the last day of trading, are practically zeroed with a drop of 93,89% which brings them to 0,011 euro, "indicating – writes Reuters – the scarce interest of the market and the risk that a large part of the 2 billion recapitalization will end up being subscribed by the guarantee syndicate banks”.
In the industry they retreat Iveco -7,64% and Leonardo, -7,47%, after the recent increases. Bad financial stocks: insurance with Unipol -6,09% and Generali, -5,68%; the banks, headed by Bper -5,07%; asset management with Banca Mediolanum -4,96% and General Bank -4,7%.
They save themselves from this caporetto Amplifon, + 2,49%, Diasorin + 0,8% Terna +0,18% and Ferrari + 0,16%.
