As flexible as reeds in the wind, world markets are bending this way and that, whipped by the “coronavirus” storm and the measures taken by countries and central banks to stem the epidemic and the recession.
The European stock markets hit a rebound, at the end of a roller coaster session, thanks to the fact that Wall Street seems to have found the way up with the new intervention by the Fed and the expectation on the White House. It goes down there'EUR, which loses almost 2% against the dollar and trades at 1,097.
Business Square edged up 2,23% to 15.314 basis points, driven by Telecom (+11,27%), which yesterday reached an all-time low. In evidence banks, oil companies, utilities. Terna earns 7,81%. Stay on the ground Fcto -4,24%. Consob today banned short selling on a basket of 20 stocks.
In the rest of Europe: Frankfurt +2,19%; Paris +2,84%: Madrid +6,46%; London + 2,81%. Wall Street vAmbia step several times, but at the moment it seems to be on the way to an excellent recovery after having experienced yesterday the worst session for over 30 years. The turning point came after the news that the Fed was reopening the commercial paper funding facility, already used in the past to respond to companies' difficulties in raising funds on the commercial paper market. The US Treasury will provide the central bank with $10 billion in collateral. The new facility will remain open until March 2021 and allows the Fed to intervene in the market for short-term corporate loans. Meanwhile, European banks have drawn 109 billion euros in the first Ltro auction,
The markets then look with interest at the measures decided upon by governments. After the 25 billion cure licensed by ItalyFrench Economy Minister Bruno Le Maire announced today an intervention worth 45 billion euros to deal with the emergency. There is also great expectation for what the United States will be able to do and according to what some newspapers write, the White House could ask Congress to allocate an aid package worth 850 billion dollars.
A cyclopean movement that seeks to face a global recession that has now arrived according to S&P, which estimates 2020 growth in a range between 1% and 1,5%, not excluding worst scenarios given that the risks "remain firmly on the downside ”. According to the guidelines of the International Monetary Fund, the global economy enters a recession when it grows less than 3% because below this level it is unable to keep pace with population expansion.
Goldman Sachs has no doubts that the recession is a reality for the euro area, whose financial conditions have significantly worsened, impacting consumer confidence and their propensity to spend.
In Germany, the Zew index, which measures the confidence of German businesses, collapsed in March: from 8,7 points in February to -49,5 points. The index is worse than the expectations which indicated a slightly more contained result, albeit largely negative: -30 points. This climate weighs on the single currency, which loses against all the major currencies, while the countries of the area have decided to lock down their external borders as a measure to combat the epidemic, for 30 days no one will be able to leave or enter.
In this situation salt it spread between Italian and German ten-year bonds, reaching 278,96 basis points (+5,33%), at the end of a second day of particularly 'heavy' purchases by the ECB on BTPs to keep the spread at bay. Market sources tell Ansa that "since just after eight in the morning they've been making barrel purchases of 50 million euros".
Among the raw materialsgold resumes the ride and rises by 3% moving over 1530 dollars an ounce. Oil, on the other hand, weakened, with Brent trading just below 30 dollars a barrel.
Banks highlighted in Piazza Affari with Bpm bank +6,89%: e Ubi +4,81%. Negative Mediobanca -2,49%. Among the oil producers: Eni +5,76%; Saipem +4,31%. Shop on Snam +5,64%; Pirelli +5,17%; Juventus +5,03%; Enel + 4,27%.
Sales penalize Azimuth -5,02%; Unipol -4,42%: Generali -3,94%; nexi -2,92%.
Out of the main price list Molmed, +80,89%, with the takeover bid by the Japanese group AGC and the agreement with Fininvest, leading shareholder of the biotechnology company, which will adhere to the offer with all the shares in its possession equal to 23,12%. The offer is aimed at the delisting and pays subscribers 0,518 euros per share, equal to a premium of 110,3% on yesterday's closing of Molmed shares.
