International tension over the G7 in Canada adds to Italy's political uncertainty. For Piazza Affari, the worst of the European price lists, the perfect storm is served: Ftse Eb in free fall and spread back to orbit. For the main index of the Milan Stock Exchange, the last session of the week closed with a red of 1,89% at 21.355, the lowest since August 2017. A drop that brings the overall figure from the beginning of the year to -2,3 % from +11% at the end of April.
The crossfire between Donald Trump, Emmanuel Macron and Justin Trudeau has exacerbated the opening of the G7, but the US president seems to have found a new side in the Italian premier, Giuseppe Conte. The two would agree to bring Russia back into the G8, a move which, according to the Prime Minister, would be "in everyone's interest". International political acrimony is infecting the stock exchanges of the Old Continent - already worried about the future moves of the ECB - which, however, recover in the final: down Frankfurt (-0,35%). Also in red Madrid (-0,8%) after a week of gains in the wake of the new government. Contains losses London (-0,3%), flat Paris (+ 0,03%). After a bad start, it continues uncertainly Wall Street: Dow Jones (+0,06%), S&P 500 (-0,01%), Nasdaq (-0,09%) looking forward to next June 12-13 Federal Reserve meeting where it will come – markets give it now for sure – the next rate hike.
In Italy, yet another heart-pounding day for government bonds. The focus is still on the spreads, at the mercy of a frantic ups and downs: 259 basis points at the start, 280 in the morning, then back down to 260. At the end, a new surge to 268.7 basis points with the yield on the Italian 3,137-year bond soaring to XNUMX%. "Most of the crisis we have had in recent years has been due to exogenous factors, the latter instead is due more to endogenous tension", explained the Governor of the Bank of Italy, Ignazio Visco, speaking at thepresentation event of a cycle of financial education meetings open to citizens. Translated: until Italy manages to reassure the markets about its debt and its permanence in the euro, investors will continue to bet against our bonds. It is no coincidence that the number one of Bank of Italy warns: "It is necessary to keep in mind the constraints that exist on the balance of public finances, therefore not only do not take too long a step but when you do it, do it measured so as not to fall into the abyss ”.
On the equity side, sales do not spare any sector: the car and industrialists are down, but the banking sector is still in the eye of the storm with the sector index that replicates the trend of the Ftse Mib, dropping 2%. The Popolari were the worst performers, also weighted down by thePremier's announcement on a possible revision of the reform implemented by the Renzi government to overcome the per capita vote, as the Bank of Italy had been asking for twenty years: Bpm bank -4% Bper -2,7%. They also suffer Where's Banca (-2,7%) And Unicredit (-2,48%).
Asset management is also in deep red: Azimuth -3,2% General Bank -3,06%. Partially contains losses Finecobank (-0,7%). Among the insurance companies, bad Unipol (-3,3%).
Heavy the Agnelli galaxy: Cnh –3,57%, fca -2,55% Exor -2,06%.
In the finale the sales also hit Saipem (-0,67%) which for almost the entire session managed to dodge the sell-off thanks to the three orders announced during the week, the last of which, in Thailand, announced in the morning. After the 970 million euro heist, with the Cepav project and the 1,3 billion dollar Offshore E&C contract in the Middle East, the engineering company has in fact managed to close a new E&C contract worth around 500 million dollars in joint venture with CTCI Corporation. Down Eni (-2,8%). Among the blue chips is saved only Salvatore Ferragamo: (+0,37%).
Outside the Ftse Mib it collapses Retelit (-4,59%) after that the Government has decided to exercise the Golden Power. Also down sharply Anima (-4,3%) which in May recorded negative inflows of 812 also due to the redemption of an institutional loan.
Returning to the international front, theeuro returns to 1,1761 against the dollar, while the Petroleum weakens: Brent falls to 76.55 dollars a barrel, Wti falls to 65.55 dollars.
