Sales on world markets are back, thanks to the drop in oil prices and the rise in yields on US government bonds. After yesterday's positive pause, European stock markets closed strongly negative (Ftseeurofirst 300 -1,89%), influenced in the afternoon by the decline of Wall Street, which seems to be heading for a new collapse. The Dow 30 is currently down 1,5%. Only Twitter shines, with higher than expected accounts.
Piazza Affari scores -2,26%, 22.542 points, despite the limitation of some financial stocks. Thanks to the 2017 results on the Ftse Mib, only Unicredit, +2,1% and Banco Bpm, +0,6% are saved. Recordati collapse, -8,17%, after lower-than-expected accounts for net profit and turnover; Buzzi, -6,37%, Stm -6,16%. Bad Fiat -5,17% and Cnh -4,79%. Stocks linked to oil were in the red: Eni -2,63, Saipem -3,82%, Tenaris -4,13%.
Frankfurt loses 2,62%; Madrid -2,21%; Paris -1,98%. London leaves 1,49% on the ground. Britain's central bank did not touch on borrowing costs today, but said its monetary policy will probably need to be tightened "sooner and a little more" than it thought three months ago.
The ECB Bulletin instead states that the Governing Council of 14/12, which left rates unchanged, "continues to expect them to remain at current levels for an extended period of time, well beyond the horizon of net asset purchases" .
The euro-dollar ratio moved little, returning to the 1,22 area. Brent at its lowest for about six weeks, at 64,55 dollars a barrel (-1,47%). Gold is stable, currently at 1317,45 dollars an ounce (-0.-8%). On the secondary, the yield of the 10-year BTP rises to 2% and the spread with the Bund widens to 124.00 points (+2,56%).
The climate on Bonds remains incandescent in the USA. The yield on the 10-year Treasury rises to 2,857%, as Congress prepares to vote on a budget for the next two years that includes a suspension of the debt ceiling until March 2019; if it passes, it will lead to an increase in the federal deficit and probably more debt issuance by the US Treasury. This means Treasuries, already under pressure from prospects of an improving global economy and a slowdown in central bank stimulus, will suffer further.
