A digital blackout this morning and the awareness that "if the artificial intelligence bubble bursts, no one will be immune" – according to Sundar Pichai, CEO of Alphabet – were the backdrop to another negative day on the stock markets, shaken by fears of having bet too much on AI giants. Risk aversion is a wave originating in New York, but for days it has been affecting all financial markets, hitting Asia (Tokyo -3,22%) and Europe hard.
Piazza Affari is among the worst in the Old Continent and closed with a loss of 2,12%, rewinding the tape to 42.838 basis points, after touching 45 basis points last Thursday, before beginning to retreat. The FTSE MIB recorded only a long series of declines, starting with Telecom (-6,66%), although Hera (+0,79%) managed to plant a green flag in the entirely red field. The balance of the day was decidedly negative in Paris -1,86%, Frankfurt -1,6%, Madrid -2,17%, Amsterdam -1,53%, and London -1,32%.
READ HERE TODAY'S LIVE STOCK MARKET REPORT
Wall Street loses for the fourth session
For Wall Street today is the fourth consecutive session of decline, after the three benchmark indices yesterday fell below their 50-day moving average—often considered an important technical threshold—for the first time since late April. Today's start was negative as well, although the sell-off currently appears to be slowing: DJI -0,78%, S&P 500 -0,58%, Nasdaq -0,89%.
The end of the shutdown brought a wave of returns last Friday, after gains on rumours of a deal, but for longer Nervousness is spreading among investors relating to the mega-investments and gargantuan valuations of artificial intelligence stocks. Confirming this, the FT wrote today that the "incredible" $300 billion deal between Oracle (-1%) and OpenAI is now valued at minus $74 billion.
Meanwhile, the CEO of Alphabet (+0,7%) told the BBC that part of the current AI boom is "irrationally" and that essentially if the bubble bursts, everyone will be hurt. Furthermore, the rise the wait for Nvidia's quarterly results (-1,82%), released on Wednesday after markets closed, considered the thermometer to measure the sector's fever.
The European day opened with a higher load a digital blackout which he put Many everyday websites and platforms are in difficultyThe root cause appears to be a problem with Cloudflare, the platform that ensures security, connectivity, and performance for millions of websites and online applications, and which acts as a sort of intermediary between the visitor and the site's server. In the end, all is well, but in a state of turmoil, every problem is a warning sign.
They then take care of keeping the bar high Expectations for the Fed's behavior in December, with the market seeing the probability of a cut at less than 50%, versus 90% a month ago. To gain a more informed view, we're finally awaiting the September employment report. Meanwhile, today, weekly claims for unemployment benefits were above the period average at 232, versus an estimated 223.
Bitcoin drops below 90, then rises again
On days when investors are moving towards safer havens (today T-Bond yields are falling) the cryptocurrency market is losing $1.2 trillion. Bitcoin, in particular, continues to depreciate, briefly dropping below $90,000. The digital currency is currently down almost 2%, but trading near $93,000.
On the foreign exchange market, the dollar appears to be little changed. The euro is at yesterday's levels and sees a cross of 1,1582. Among commodities, gold does not increase its earnings, but is still trading above $4050 an ounce (both spot and futures). Oil remains weak, with Texas crude below $60 and Brent at $64 a barrel.
Piazza Affari, banks in decline
Telecom and Stellantis (-4,44%) are among the worst performing stocks on the Ftse Mib today, but the overall specific weight that is most affecting the list is that of the banks.
Among the ten blue chips with the greatest losses are MPS -3,69%, Popolare di Sondrio -3,53%, BPER -3,4%, and Intesa -2,95%. Even Banco BPM -2,67% is not safe, although Credit Agricole's approaches are keeping the banking game alight. According to CEO Olivier Gavalda, the bank would welcome the possibility of being approached by Banco BPM "for a deal in Italy." However, the French would under no circumstances consider the possibility of sell its subsidiary Crédit Agricole Italia for a cash consideration. "A merger" with Banco BPM would make "a lot of sense, with many synergies, but this project is not yet at an advanced stage," the manager noted.
Ferrari also continued its decline, down 3,25%, as did luxury stocks, which are still penalized by tensions between China and Japan. It is out of the main basket. Cy4gate remains in evidence +5,53%.
Spreads up
The session closes Government bonds also in the red Italian government bonds, which saw their spread with respect to the 10-year Bund widen slightly to 75 basis points. Rates rose slightly to 3,46% and 2,71%, respectively.
