After a positive start, the abrupt turn into the red on Wall Street hit the already fragile European stock markets in the final stages: Frankfurt -1,86%; Paris -1,94%; Madrid -2,42%; London -1,92%; Zurich -2,26%. Piazza Affari is the best, even if it loses 1,44% by falling back to 23.090 points. On the secondary, the spread rose further after the morning's auctions: 149 basis points (+3,28%), with a yield on the Italian 0,97-year bond at 1,55%. However, the demand for Ctz remains high, which in the auction exceeded the offer by 2,25 times. The Treasury placed 2 billion Ctz over 0,143 years, with negative yields (-3%), albeit up by 28 basis points compared to the similar auction of XNUMX January.
The coronavirus epidemic that is whipping China and now Korea, Iran, Italy remains to dominate the scene, albeit with an enormously lower number of cases. What worries the markets are the economic repercussions of this scourge and the macro data of the day do not help. In the USA, in February, manufacturing activity in the Richmond area deteriorated significantly compared to the previous month. The index compiled by the local Federal Reserve collapsed to -2 points from 20 points in January. A value below zero indicates a contraction phase, conversely a reading above this threshold indicates expansion. The deliveries component went from 29 points in January to 1 point. The PMI Services US also fell from 53,4 to 49,4 points, the lowest level since 2013. Consumer confidence rose in February, but less than expected.
In Germany, the GDP of the fourth quarter of 2019 confirmed the estimates previously released and remained unchanged on a monthly basis, while it rose by 0,4% on a year-on-year basis. However, the governor of the Bank of France and member of the ECB Francois Villeroy de Galhau said today that there is no need, at the moment, for further monetary measures against the epidemic.
On the foreign exchange market, the dollar is taking a breather, as betting is starting on a possible rate cut by the Fed at its June meeting. The euro-greenback exchange rate is slightly in favor of the single currency, at 1,088. Meanwhile, the yield on 10-year US government bonds hits a new low at +1,322%
We go to the collection on gold, which loses share compared to the highs for about seven years reached on the eve. At the moment the bar trades at 1651,25 dollars an ounce (-1,55%). Oil travels down: Brent -1,78%, 54,78 dollars a barrel. The sales on the banks weigh on the main list of Piazza Affari, at the end of a volatile session. The worst is Banco Bpm, -4,05%. Bper +0,1% against the trend. Outside the Ftse Mib, Monte Paschi is appreciated, +2,7%.
The day is particularly difficult for Diasorin -3,89%, the diagnostics company's stock has been suspended several times in volatility. Male Amplifon -3,75%; Buzzi -3,5%; Leonardo -2,82%; Enel -2,8%. Cnh recovers +2,94%. They hit a small rebound Nexi +1,17%; Juventus +0,65% (which yesterday lost more than 11%), Ferragamo +0,41%; Recorded +0,39%.
Thanks for the interesting article. We wonder why the media didn't pay the same attention to the bankruptcy of 4 banks in the Veneto region which destroyed the savings of 100.000 account holders and their families, as well as causing a high number of suicides among small entrepreneurs who are now also suffering the blows of the Coronavirus.
Even the Popolare di Bari represents another forgotten emergency.