Black day for the European markets, which began to accumulate losses especially in the afternoon, after the negative start of Wall Street. Among the reasons for this risk aversion are fears that the US administration will fail within a month, the collapse of oil and strong inflation in the eurozone (although a slowdown in core inflation), all as they approach in this short week the meetings of the Fed and the ECB. The starter served by the Australian central bank was an unexpected hike of 25 basis points, which brought rates in the country to the highest levels for 25 years.
In this context Business Square it lost 1,65% and slipped to 26.630 basis points, due to the change of sign of the banks, which had supported the list in the morning. Losses are more than a percentage point even at Frankfurt (-1,28%), Paris (-1,45%), Madrid (-1,72%). London it dropped 1,28%, weighted down by BP (-8,83%) despite the excellent quarterly results, due to the reduction in the buyback plan.
The change euro-dollar it is slightly moved below 1,1%.
Il Petroleum it falls heavily, with Brent down 4% to 76 dollars a barrel, while Wti falls by 3,7% to 72,87 dollars.
Gold purchases return and spot gold travels above 2000 dollars an ounce (+1,4%).
Banks down on Wall Street
Janet Yellen warned: the country could default by June XNUMX if Congress does not raise the debt ceiling.
The drop that broke the camel's back on the markets today is probably the warning of the US Treasury secretary, who caused the cost of insurance to soar against this scenario, despite the immediate reaction of Joe Biden who invited the speaker of the US House Kevin McCarthy and other top Republican and Democratic congressional leaders at the White House on May 9 to discuss the issue.
Oil stocks are also heavily negative on the lists with the drop in crude oil and banks. Because on the one hand it is true that the crisis of First Republic Bank has been resolved byspeech by JP Morgan (-1,5%), but on the other hand there are fears of bankruptcies of other small institutions in difficulty.
Highlight week for central banks
Furthermore, what is creating a certain nervousness is the expectation that the Fed and the ECB will pronounce their rulings on interest rates this week and above all let us glimpse their future behaviour.
La ECB it will also have to take into account the latest inflation data which shows some small signs of easing in the eurozone for the first time in ten months as regards core inflation, but accelerates further overall.
Excluding energy, tobacco and food, the block's inflation in April fell to 5,6% from 5,7% in March, but overall inflation rose to 7% from 6,9%.
In Italy the race in prices is even stronger: +8,3% in April (from +7,6% in the previous month) according to preliminary estimates by Istat, due to the rise in the prices of unregulated energy goods (+ 26,7%). L'inflation basically, net of energy and fresh food, it appears stable at +6,3%, as does that net of energy goods alone (at +6,4%).
Only four blue chips are saved in Piazza Affari
There are only four blue chips Business Square who managed to move against the trend until the end. In the first place, Campari, +2,65%, which he presented results for the quarter above expectations. stm, +1,53%, which rebounds thanks to positive indications from two US competitors, but only partially recovers the heavy losses of the last eighth.
Bene Prysmian +0,86%; you save Moncler + 0,03%.
The rest of the list was overwhelmed by a deluge of sales starting from oil stocks, such as Saipem -7,32% Tenaris -5,36% Eni -4,19%.
Also among the stocks with the biggest losses Iveco -3,53% ed Ivy -3,47%.
Financial stocks lose share starting from Mediobanca -3,41%.
It also moves back Unicredit -1,75%. The stock had held up until mid-day on the eve of the publication of the quarterly accounts, but then changed pace.
The other big in the basket does worse, Understanding -2,35%
Spreads up
The Italian secondary also closes in red: lo spread between 10-year Btp and 10-year Bund it widens to 190 basis points (+2,58%), with rates of +4,15% and +2,25% respectively.
