Yet another day of passion for the European Stock Exchanges. Mid morning Business Square loses 3,6%, Frankfurt e Paris 3%, London 2,7%. During the night, the wave of sales also overwhelmed the Asian price lists: Tokyo closed down 3,7%, while Shanghai e Shenzhen they closed trades 1% in the red. Chinese shares listed on ads are also bad Hong Kong (over -4%) penalized by pressure on the local currency and by the negative data on investments in China in December.
On the Ftse Mib, no security travels in positive territory and at the start there were several suspensions due to excessive downtrend. Once again, the most targeted shares are those of banks, many of which are weighed down by fears related to a new ECB investigation into non-performing loans.
Sales especially focus on Ps, which struggled to raise its price before being admitted and immediately suspended in the volatility auction with a drop of 10,68%, despite the ban on short selling by Consob e the reassurances arrived from CEO Fabrizio Viola.
Also suspended Carige, which travels in the red by 10,85%. In the rest of the sector, Banco Popolare -6,2% Unicredit -5,4% Understanding -3,9% bpm -4,5% Mediobanca -2,9% Ubi -3,2%.
Despite the storm on the banks, the spread – protected by the purchases of BTPs by the ECB – contains the increase, reaching 106 basis points.
Meanwhile, the price of Petroleum slips again after the alarm raised by the International Energy Agency on the strong overproduction. The WTI is traded at 28,64 dollars a barrel after hitting a low of 27,55 dollars. Brent, after a bet below 28 dollars, travels 27,95 dollars a barrel.
The umpteenth fall in oil prices is making itself felt Saipem (-6,4%), Eni (-3%) And Tenaris (-4,9%).
They travel in deep red in Milan too Fiat (-4,8%), Exor (-6,7%), Cnh (-3%), Finmeccanica (-3%), Telecom Italy (-3,4%), Ferrari (-4,9%), Mediaset (-4,8%) And Unipol (-4,9).
On the currency side, euro up slightly to $1.09549.
Europe therefore quickly archives yesterday's rebound. The general concerns of the markets focus on the continued erosion of oil prices and the performance of the world economy: yesterday the IMF has reduced its estimates of world growth for 2016 (3,4% from 3,6%) and slightly increased those of the euro area (1,7% from 1,6%).
Investor sentiment is also weighed on by fears of capital flows out of China and the fact that the renewed decline in oil could lead sovereign wealth funds to sell risk assets to cover the reduction in reserves/budget deficit. Tonight in China, surprisingly, December data on direct investment showed a contraction (-5,8% y/y), perhaps due to companies' fears of further devaluation of the yuan.
