Milan worse than Brazil. While waiting for the ECB to take the measures already promised in March and, above all, for the Fed to give up on new hikes at least until the autumn, the markets are trying to put an end to the January of horrors. TO Business SquareDespite rising 2,5% on Friday, the FtseMib index closed the week down 1,95%, the fifth consecutive week of declines. The loss since the beginning of the year is -12,5%.
To underline the negative performance of Milan, conditioned by the decline in banking, the comparison with the Emerging will suffice: la Brazilian stock exchange, expression of a country in recession, hit moreover by the epidemic, has lost only 10% since January (in euros).
The worst bag is though Shanghai (-22%) ahead of Hong Kong (-19,3%). It went better but not too much at the other European Stock Exchanges: Frankfurt is down 9%. TO Wall Street there is -9% of the Nasdaq and -6% of the S&P500 and Dow Jones.
In general, the financial markets closed a catastrophic month without regrets, barely softened by the final upturn favored by the Japanese measures. In the month of january the overall index of world stock exchanges MSCI Global dropped 7,8%. To find a worse data, it is necessary to go back to the January 2009 when, five months after the bankruptcy of Lehman Brothers, stock prices fell by an average of 8,8%.
Even then, as indeed happened last month, there was a sudden shortage of freshmen: not even an IPO on US lists while Coima Res (Manfredi Catella) and Idea Re in Piazza Affari postponed the road show dedicated to investors. Looking at the precedents, it is not legitimate to have hopes of a speedy recovery.
February 2009 was even worse (-10,5%), but laid the foundations before the formidable recovery that started on 9 March of that year: the S&P index, from the lows to 666, began the long upward march marked by the central bank interventions, led by the Fed, which made it possible to achieve a hike streak of 137% until the summer of 2015. Will history repeat itself?
