A wave of selling overwhelms the markets today, in the wake of the black forecasts of the Federal Reserve and the resurgence of infections in some of the North American states. The European lists, already negative, worsen with the downward opening of Wall Street and close in deep red. Frankfurt -4,39%; Paris -4,71%; Madrid -5,02%; London -4,01%.
Piazza Affari is on the same wavelength, -4,81% and takes a deep dive to 18.806 basis points, on the day in which Istat certifies the damages from the lockdown on Italian industrial production in April: -19,1% month over month, -42,5% year over year. For motor vehicles, the shutdown is total: -100 per month, -98,4% if compared to April 2019. A long-awaited, but no less bitter Caporetto and everywhere, even in the rest of Europe, the wounds from Covid are bleeding : Zara locks down 1200 stores as Lufthansa prepares to lay off 22000 full-time employees.
The coronavirus emergency "is getting worse in the world even if it has improved in Europe", says the WHO and the Monetary Fund warns: the crisis could push up to 100 million people to extreme poverty, even if governments have implemented measures extraordinary for an amount of 10.000 billion dollars. The Governor of the Fed admitted yesterday that the recovery of the economy after the shock will take years, while US GDP will fall by 6,5% in 2002 and will certainly not rise by 2%, as expected in December. On the health front, the news of new cases in Texas, more than 2 thousand yesterday and the increases in Florida and California are frightening. The US Treasury Secretary, Steven Mnuchin, in an interview with CNBC, says "we can't shut everything down again", rather we have to go back to Congress to ask for more money.
The fear that this situation will continue longer than hoped for in recent weeks scares oil, which sees a massive recovery in fuel demand fading away. Brent loses 6,85% and falls to 38,87 dollars a barrel; Wti -8%, 36,43 dollars a barrel. Refuge is sought in gold, which rises by more than one point to 1742,75 dollars an ounce. The euro-dollar is flat at 1,136.
In Piazza Affari, the main list sees 39 titles out of 40 at a loss. We start from Cnh -11,82%, which after celebrating the debut on Wall Street of its investee Nikola (-2,5% in NY) in recent days, today mourns the competition in the electric truck sector from Tesla (-2,45. 7,7%). In the Agnelli galaxy FCA sinks further, -10%, in the perspective of having to face a long EU antitrust investigation for the merger with PSA (-7,71% in Paris) and of being forced to postpone the wedding date. In line with Exor -8,54%. Down Pirelli -XNUMX%.
The banks remain under pressure, together with the spread, Unicredit -7,87%; Banco Bpm -7,82%. On the secondary side, the yield differential between the Italian and German ten-year bonds rises to 186 basis points (but after exceeding 190 in the morning) and the BTP rate stops at 1,44%. Atlantia dropped 9,16%, pending first quarter results, with closed markets. Male Telecom -8,21%. Among the oil stocks, Saipem -7,51%. For fashion, the highest price is paid by Ferragamo -7,33%. Utilities are doing less badly, but Diasorin is the only big cap in progress, +2,32%.
