The massacre, punctually announced by futures, is underway. At 11 am the Milan Stock Exchange left just under 10% on the ground (though recovering from the lows of the opening) around 18.900. The losses of the other European lists were minor but still very heavy: Paris -6%, Frankfurt and Madrid down by an abundant 5%, London -5,8%. Wall Street futures anticipate a start down 4%.
Red alert also on the bond front. The spread on the Bund widened to 205 points: the 1,34-year yield, which jumped at the opening to 1,22%, the highest since mid-January, is worth 1,08%, from 2% on Friday evening, while the 0,46-year BTP rate hit a high in mid-August, climbing up to 0,04% from the previous 0,85%. The German 13-year yield falls to new historic lows at -2013%, -XNUMX basis points. Investor morale in the euro zone collapsed in March to its lowest since April XNUMX, the Sentix index confirms.
ENI FALLS, EVEN THE DOLLAR
At the origin of the collapse, in addition to the effects of the coronavirus, there is the splash of oil. The OPEC+ alliance split on Friday and Saudi Arabia decided to attack Russia and other producing countries by lowering prices and preparing for a sharp increase in production. Brent crude oil loses 18%: to find a variation of this magnitude we have to go back to the times of the Gulf war in the 90s. With the fall in prices, the US shale oil sector is at risk of collapse, with the risk that the default will infect the financial sector on Wall Street.
In Piazza Affari Eni sells 17%, Saipem -19%, Tenaris -16,5%.
Strong shocks also on the currency market. The dollar loses almost a point against the euro, cross 1,139, in the expectation of new cuts coming from the Fed.
VON DER LEYEN ANNOUNCES SPEECHES
Catastrophe risk, the only positive aspect, seems to move the European leaders. Ursula von der Leyen opened this morning to interventions on the flexibility front. The Union must prepare a "massive" economic stimulus plan to deal with the impact of the coronavirus epidemic, says French Finance Minister Bruno Le Maire.
Germany has allocated more than 12 billion euros to deal with the coronavirus emergency. Italy, as is known, has asked the European Commission to increase the 2020 deficit by over 6 billion. Thursday the word passes to the ECB.
The fiora coronavirus has led to a loss for European lists in the order of 3 trillion.
EVEN THE UTILITIES IN RED
There are no stocks in positive territory in Piazza Affari. Utilities also fell, unaffected by the drop in the cost of money: Italgas -7%, Hera -3%, Terna -9%, Snam -6,5%, Enel -8,5%.
The pharma companies are slowing down: Recordati -8%, Diasorin -5%.
The list of double-digit discounts is much longer. Exor -10,5%. Stm (-11%), Moncler (-11%), Ferragamo (-9%), Tim (-10%) and Poste (-10%) suffer the same fate, among others.
FERRARI (-7,8%) DOES NOT RENOUNCE THE WORLD CUP, JUVENTUS -9,5%.
Ferrari (-7,8%) guaranteed operational continuity on the eve of the start of the World Championship, despite Maranello returning in the orange zone decided by the government to deal with the epidemic.
The Juventus stock loses 9,45% despite the victory over Inter.
