Widespread sales on the price lists. The European stock exchanges all closed in negative territory. Piazza Affari accelerates the decline towards the end and drops by 1,4%. Paris -1,89% where Peugeot falls on press rumors of a new capital increase, Frankfurt -1,7% and London -1,99%
There are profit-taking but also renewed fears, after the good US macro data, about a possible slowdown by the Fed in the bond purchase programme.
Then there is the European picture which continues to worsen: the Eurozone recession in 2013 will be much deeper than expected and the labor market situation much more critical. This is what the OECD estimated in its spring "economic outlook", in which the international organization significantly corrected its estimates at the end of November. GDP growth, which was negative by 0,5% last year (revised from -0,4%), is expected to fall by 0,6% this year (versus -0,1% previously indicated). Estimates also revised downwards for Italy which will have a 2013 GDP down by 1,8% against the -1% previously estimated: "the necessary consolidation of the public finances and the restrictive credit conditions have prolonged the recession in Italy" , which will continue “throughout 2013”. While unemployment will reach 11,9% in 2013. In Germany the unemployment rate remains stable at 6,9% even if the number of unemployed increases (+21 people).
Meanwhile, today came the news that the Commission has officially proposed to Ecofin to repeal the excessive public deficit procedure against Italy and 4 other countries. The Btp bund spread fluctuates around 255 basis points. Today the treasury has assigned six-month bonds for 8 billion and a yield of 0,538% from 0,503%. The ratio between demand and supply was 1,58 times.
After a negative start around half a percentage point, Wall Street is also widening the declines. At the close of Europe, the Dow Jones dropped 0,8% and the Nasdaq 0,7%. Highlights Sally Mae, the student loan agency that rises by 12%. The euro rose to $1,2949. The single currency instead fell to 130,62 yen and the dollar/yen to 100,86 (102,32). Wti oil loses 1,39% to 93,71 dollars a barrel.
In Piazza Affari, Banco Popolare rises +0,9% against the trend. Among the best also Enel Green Power +0,6%, Diasorin +0,2 and Mediobanca +0,10. At the bottom of the Ftse Mib Luxottica -4,2%, Stm -3,5%, Finmeccanica -3,4% after the postponement of the appointment of new top management, Mediaset -3,2%.
