La threat of new US tariffs of 25% on cars, pharmaceuticals and chips are depressing the markets today, further unnerved by Isabel Schnabel, member of the board of the ECB, who told the Financial Times to want to think about a possible pause in interest rate cuts. Investors have thus chosen to cash in in Europe, after the Stoxx 600 hit a new all-time high yesterday, convinced by the move also by Wall Street's off-key start. In the background, tensions with the White House remain, after a long-distance exchange of courtesies between the Ukrainian president Volodymyr Zelensky and the US president Donald Trump which does not bode well for the future. “You live in a bubble of Russian disinformation,” said the Ukrainian, “you are an unelected dictator and a modest comedian,” who has collected hundreds of billions of dollars from the US for a war “that you could not win,” replied the American.
Read EVEN Stock Market Today February 19th Live
Europe in red, Milan limits the damage
Thus Business Square loses 0,53% and falls to 38.348 basis points, but remains at its highest level in over 17 years and is still one of the least bad in Europe. The price list is supported by the leap of stm +7,92%, promoted by Jefferies to 'buy' from 'hold', while on the opposite bank it is Recordati, -6,76%, alarmed by the American tariffs and by the fact that the majority shareholder, Rossini, controlled by the Cvc fund, has 5% of the capital placed through accelerated bookbuilding, maintaining a share of 46,82%.
In the rest of the continent the red is on Frankfurt -1,87% Madrid -1,66% Paris -1,17%. Losses are fractional to London -0,63% and Amsterdam -0,5%.
Wall Street Weak Ahead of Fed Minutes; Nikola (Electric Trucks) Fails
Meanwhile the bell of Wall Street has hit a wall and the main indexes are moving lower, after the new high updated yesterday by the S&P 500 and waiting to read ivherbs of the last Fed meeting, when the US central bank chose to leave the cost of money unchanged. After that meeting, Jerome Powell recently stressed that he was in no hurry to cut rates and since then the market has seen one or at most two cuts of 25 basis points during 2025. This climate is also being felt on government bonds, which are currently recording rising rates on both sides of the Atlantic.
In the stock market, the crash of Nikola Corporation, after the electric truck company asked the protection provided by Chapter 11, the largest U.S. bankruptcy law. At its peak in 2020, Nikola was worth $30 billion, more than Ford Motor, and signed a multibillion-dollar deal with General Motors, but two years later, CEO and founder Trevor Milton was indicted for fraud and the decline was inexorable. In the third quarter of 2024, only 600 vehicles were produced, and many of those were recalled due to problems, costing the company tens of millions of dollars.
Tonic the oil
Among the raw materials, the tonic moves Petroleum, which is gaining more than one percentage point with Brent ($76,69 per barrel) and WTI ($72,81 per barrel) futures.
Even the prices of the jumped to another all-time high today ($2947,05 an ounce), before falling back and spot gold is currently trading at $2938 an ounce. Trade and geopolitical tensions are driving purchases and prices of the bullion, while inflation in France disappointed yesterday and so did that in the United Kingdom today, which accelerated to 3% on an annual basis in January.
On the foreign exchange market theeuro shows a slight weakness towards the dollar, for a cross of 1,0424.
The governor of the Bank of Italy Fabio Panetta see one economic crisis in lockdown more serious than hoped and the automotive sector is the one suffering the most.
Inflation is going in the right direction, but there are new risks for energy prices. Today, however, the gas future in Amsterdam falls below 48 euros per MWh.
Piazza Affari, Leonardo still in evidence
Among the blue chips of Piazza Affari Leonardo also increases its earnings today with a growth of 2,6%, which brings the value of the defense stock to a new high of 35,91 euros.
Utilities raise their heads again: Terna + 0,82% A2a + 0,59% Snam + 0,48% Italgas +0,34%. Banks are mixed: they mark small increases Bper +0,72% and Popular of Sondrio +0,2%, while Bpm bank falls by 1,06%. In the large and complex banking game underway today, the position taken by Glass Lewis, a proxy advisor that assists institutional investors in voting at the shareholders' meeting and that suggests that Banco Bpm shareholders approve the proposals to modify the takeover bid on Anima, aligning itself with the assessments already made by the other large proxy advisor Iss.
The most significant declines of the day are for Buzzi -3,4% cucinelli -3,11% Amplifon -2,03% Unipol -2,01%. The car is in reverse with Stellantis -1,67%.
Closes a volatile session Telecom, which finally loses 1,93%. The stock remains under observation, while rumors see Post (-1,85%) potentially grow beyond 10% (share acquired by CDP).
Out of the main basket it flies Industry From Nora, +15,48%, on the shields for the second day in a row. The 2024 results are the driving force, better than expected and which have pushed brokers to review estimates and target price.
Spreads up
Schnabel's interview with the FT and fears for inflation are making themselves felt on Italian paper, which after yesterday's good session is closing in the red today. spread between 108-year BTPs and Bunds of the same duration returns to 3,64 basis points and rates rise to 2,55% and XNUMX% respectively.
Markets had been expecting a further rate cut at the ECB's early March meeting, but the German economist has chilled those expectations, as he believes the central bank must "now" start discussing a "pause or halt" in rate cuts. For the financial newspaper, these words highlight the growing tensions within the ECB over the economic outlook and the differences of opinion within the board regarding the need to ease or halt rate cuts.
