The Milan Stock Exchange crashes, crushed by the paw of the Bear in the shape of Christine Lagarde. And the European Stock Exchanges follow. Meanwhile, Wall Street futures take the downward path pending inflation data. Piazza Affari, down 3,8% at 13pm, unfortunately fully complied with forecasts, even slipping below 23 points. The situation of the other markets was serious but less dramatic: Frankfurt -1,45%, Paris -1,26% and London -1,16%.
The most pronounced word today is "fragmentation", i.e. the risk that the upward trend in interest rates faster and more sustained than the market is able to sustain translates into an abyss in the spread, anticipated by the violent blows of speculation to the values of btp.
The yield on the Italian 3,71-year bond rises to around 220%, about forty points more than the previous peaks. The spread, above XNUMX points, has been on record values for two years. The yield recorded in theBot auction at 12 months today's placement was the highest since October 2018 at 0,893%, compared with 0,121% in the previous placement. The Treasury has in any case assigned all the 6,5 billion euros offered.
Milan stock exchange: speculation unleashed, banks in the eye of the storm
In this context, the only macro figure for the morning, which was positive, was completely indifferent. In April the Italian industrial production it grew by +1,6%, much more than the estimated -1,1%. Adjusted for calendar effects, the figure shows an increase of +4,2% over the year compared to estimates of -0,2%. But it is a modest warm patch in the face of the looming reality, much more disturbing than the modest increase of a quarter of a point in the cost of money in July. The latest estimates on growth by the ECB estimate the expansion of the economy at +2,8% in 2022. But the increase has already been fully achieved in the first few months of the year, so hopefully growth is looming zero between now and the end of the year. But for Italy, which has been assisted for years by the purchases of securities by the ECB, the reality in terms of public finance risks being truly dramatic.
This explains why the banks are finished in the eye of the storm, in theory privileged by the recovery of interest towards customers, at least the solvent ones. The most popular stocks of the banking risk season end up in the crosshairs of speculation. Worst of all is Bper, even down by 11,4%, followed by Bpm -8.8% and Unicredit -7,4%. Losses exceeding 6% also for Intesa and Fineco.
Out of the credit stands out the new one defeat of Iveco, with a reduction of more than 7%. But even the most popular titles are losing ground, including Leonardo -2,2%.
Borsa Milano, only Prysmian is saved
The only blue chip in positive ground is Prismian +1,80% supported by the prospect of an upcoming contract with Terna. Little move Ferrari -0,18% pardoned by EU rules on the stop to combustion engines and awaiting the presentation next week of the Thoroughbred SUV, intended for customers who have survived the losses of these days.
