With the Chinese crisis, oil sales have restarted. Both Brent and WTI managed to drop 3% on new lows before recovering slightly. In the middle of the session, Brent dropped 1,61% to 33,68 dollars a barrel and Wti 2,27% to 33,20. Sales on black gold are supported by tensions between Iran and Saudi Arabia and by fears about the world economy confirmed by Beijing's moves. Concerns about nuclear power in North Korea also weigh on the market.
A new devaluation of the yuan came during the night: the Beijing authorities this morning fixed the base level of the exchange rate at 6,5646 against the dollar, the lowest since March 2011. The move was interpreted by the markets as a sort of declaration of war currency by China, with the aim of buffering the crisis that has hit manufacturing and services.
CHINA BURST, SALES BAN EXTENDED
WORLD BANK CUTS GROWTH AGAIN
The storm was not long in coming on the Chinese stock exchanges, which recorded their second halt in trading just a few days after the previous one, on Monday, when the data on manufacturing was released, which fell in December for the fifth month in a row (data PMI). Trading in Shanghai and Shenzhen halted after shares plunged more than 7%. China extended restrictions on shareholder selling, the day before the ban expired in July on January 8. Prohibition which was part of the measures adopted to counter the dramatic collapse of last summer and which prevents "large shareholders" (more than 5% in a listed company) from selling their stake.
Domino effect also on the Hong Kong Stock Exchange which lost 3,09%. Tokyo closed down 2,3%.
At the same time came the third consecutive cut on global growth estimates by the World Bank. The Washington institute forecasts a global GDP increase of 2016% for 2,9, 0,4% less than last June's calculations but better than the preliminary 2,4% of 2015. The worsening prospects are mainly to blame for emerging economies for which "this year represents the biggest test since the global financial crisis" of 2008.
FTSE MIB BELOW 20 POINTS
BURST OF SALES AND SUSPENSIONS
The euro area economy, says the World Bank, should expand this year by 1,7%, 0,1% less than expected last summer but more than the +1,5% estimated for 2015 .
Even in Europe, the price lists are overwhelmed by the international situation. In Piazza Affari there is a flurry of sales in all sectors and suspensions with the Ftse Mib falling below 20 thousand points to 19.929,79 points (-2,41%), however slightly above the lows of the day. In Piazza Affari, sales mainly hit the banks: Bmps -5,2%, Buzzi Unicem -4,91%, Banca Mediolanum -4,59%. Among the worst also FCA (-4,41%). Two-sided constructions: Buzzi collapses (-4,8%), Astaldi runs (+4%).
Compared to the Ftse Mib, the other main European markets are doing even worse. Paris loses 2,89%, London 2,71% and Frankfurt 3,67%.
In terms of macroeconomic data, in November the Italian unemployment rate dropped to 11,3% to its lowest level since November 2012, according to provisional data on the labor market.
In Europe, in December the European Commission index which measures business confidence in the euro area (Bci) recorded a very slight improvement of 0,05 points, reaching +0,41 points (in the same area in which it was in July 2011). The European Commission's index that measures the assessment of the business and consumer economy recorded a "slight improvement" in the euro area of 0,7 points in December, reaching 106,8 points.
In Germany, retail sales in November increased by 0,2% on the previous month and by 2,3% on an annual basis, below market expectations which forecasted growth of 0,5%. On the other hand, a record in the United Kingdom for car registrations which reached a new record closing 2015 with a leap of 6,3 percent. Only data on weekly claims for unemployment benefits are expected from the US in the afternoon.
