The bear dance continues on the financial markets. The Eurostoxx 50 index, which brings together the main indicators of the euro area, is ninth down in ten sessions and slips to its lowest since November 2020. September is thus starting to be the eighth negative month of the nine completed in 2022 Since the beginning of the year, the index has lost approximately -24%. At these levels, 2022 would be the worst year since 2008 (the year of the Lehman Brothers' crash).
European stock exchanges in red, Ftse Mib
Piazza Affari does not differ from the general trend: the Ftse Mib index leaves 12% on the ground at 30 and around 1,2% two hours later. Frankfurt is doing worse as geopolitical tensions between the West and Russia are intensifying, after what Germany, Denmark and Sweden have defined as two attacks on the Nord Stream gas pipelines. According to media reports, the European Union has threatened a "strong and united response" to the attacks on the gas pipelines. Will it arrive during the Extraordinary Council on Energy on Friday 1 September?
European stock markets in the red, the Boe intervenes to defend the pound
Meanwhile, the London blue-chip index 100 FTSE it lost 1,48% after the International Monetary Fund and Moody's rating agency criticized Britain's new economic strategy.
The Bank of England (Boe) is taking action in support of UK government bonds, overwhelmed by the sales after the announcement of the maxi fiscal stimulus plan wanted by the Government which sent the pound into a nosedive. The central bank has announced that it will make unlimited purchases of long-term bonds, and has postponed the 31-year Gilt auction scheduled for today, September 28, to October XNUMXst.
Also 'fishing industry sinks: Mony, Leroy Seafood and Salmon lose between 15 and 20% after the Norwegian government proposes a resource tax for thesalmon farming and trout by 40% starting in fiscal year 2023.
Negative forecasts on Wall Street. Nasdaq futures lose 0,6%.
In Italy consumer confidence down beyond expectations, Bot auction yields up sharply
In Italy in September the confidence of businesses and consumers is falling beyond expectations: “The consumer confidence index, after the rebound in August, it decreases again to the same level as last July”, Istat explains in a note. Also in redbusiness confidence index which decreases for the third consecutive month, reaching the lowest value since April 2021, a trend "determined by the negative evolution of its confidence in manufacturing, services and retail trade".
The bad economic situation of the stock markets is linked, in addition to the Ukrainian conflict and the tug of war on the gas, to pressure on interest rates: This morning thebot auction at 6 months it recorded a new ten-year high at 1,978% against 0,810% at the end of July. After the auction, the 4,75-year BTP rate fluctuated between 4,93% and 254%, however on the rise compared to the previous record. The spread rises to 250 points (against 22,5 at the closing). Germany announced additional issues in the fourth quarter for another 2015 billion euros for needs related to the crisis. The German real rate climbs back into positive territory for the first time since June XNUMX.
Today, Germany announced additional issuance in the fourth quarter of another 22,5 billion euros for security needs energy crisis.
International markets: increasingly strong dollar, gas rises
The dollar index is up for the seventh consecutive day, +0,4% to 114,5. Euro -0,4% to 0,955. The European Central Bank must continue to raise interest rates to contain inflation, even if the side effect of tightening policy will be weaker growth. This was stated by the president of the ECB Christine Lagarde. "We have brought inflation back to 2% over the medium term and we will do what we have to do, which is continue to raise interest rates in the next few meetings."
Finally the gas. Natural gas is traded at the Dutch TTF node at 210 euros per MWh, +13%. The European Union will strengthen the protection of its energy infrastructure following the accidents that caused the leaks of the Nord Stream gas pipelines, said Josep Borrell.
Milan stock exchange: utilities recover
In Piazza Affari it shines Tenaris, the utilities recover some positions. A2a +0,6%. Enel -1%. CEO Francesco Starace said this morning that the gas leak from Nord Stream was "very worrying". The number one of the company has asked the government to support the utility sector, burdened by requests for call margins.
Fpt, a subsidiary of Iveco climbs 0,3% Fpt Industrial, has reached an agreement to acquire a minority stake in Indiana in Blue Energy, active in the production of clean energy commercial vehicles.
Losses greater than 5% for Leonardo and Stm. Apple has given up on ramping up iPhone production due to lack of demand.
Media for Europe -5%, it closes the first half with an operating result (Ebit) of 112,0 million euros, compared to 198,7 million euros in the same period of 2021. Total consolidated operating costs (personnel costs, purchase costs , services and other charges, depreciation, amortization and write-downs of rights and other fixed assets) amounted to €1.276,5m compared to €1.188,5m in the first half of 2021.
It also loses 5%. Monte Paschi Bank, on the day in which the interest of some banking institutions for the increase of the institute emerges.
