The epidemic has knocked out the Stock Exchanges, everywhere in retreat.
The 30 day block of the travel to USA from Europe (except the United Kingdom) decided overnight by Donald Trump and the announcement of the WHO which raised the coronavirus alert to the level of a pandemic led to the KO of the Bull. Piazza Affari, clinging to 17 (17.012 at 13) but down by 5,11%, is in line with the other price lists. The bulletin of losses reports: Paris – 5,4%, Frankfurt -5,6%, Madrid -5,5%, London -5,4%. China's stock markets closed this morning with a more contained decline than the rest of the world: Shanghai-Shenzhen CSI 300 index -1,9%, S&P China 500 -2,5%.
All eyes are now on the ECB, which is expected to announce new liquidity measures to reassure the market. Meanwhile i Wall Street futures are in the red by 4%, while markets are pricing in a rate cut of 20-30 basis points in 2020 in the EU and another reduction in the US on 17-18 March of 1,5%, after 0,5% last week .
It widens it spread between Bund and BTP at 210 basis points, from 192 yesterday. As a result, the yield on the ten-year BTP rises to 1,33% from 1,264 yesterday evening, while the Bund is stable at -0,72%.
Il ten-year BTP sees the yield climb from 1,264% at the start of the session to 1,347% by mid-morning. with the spread rising to 207 points from 194 at yesterday's close.
This morning in the auction the Treasury placed the three-year bonds at a positive yield of 0,74% against -0,1% a month ago.
A twenty-year tranche (1,5 billion) was placed at a rate of 1,97%
Gold drops 0,5% to $1,633.80 an ounce-
Oil loses 4% to 34,4 dollars a barrel. Even if the price war between some major crude oil producers shows no signs of letting up, in private it seems that the major producers are once again talking to each other, indeed, are ready to meet. The Kazakh energy minister said on Thursday morning that the OPEC + technical committee meets on March 18th .
Waiting for the outcome of the ECB summit the euro falls by 0,28% to 1,1239 and the yen continues to fly as a safe haven currency by 0,7% to 103,76 against the dollar.
The sector most sacrificed on the share price lists is that of travel and leisure -9,4%, hit cold by the US decision, not agreed: Air France, Lufthansa and Iag (owner of British Airways) show a drop of between 8% and 11%.
No blue chip with a plus sign, new pressure on the credit sector. Unicredit retreats by 6%, Understanding -4,5%. Losses greater than 5% even for Bper and Banco Bpm. Down too nexi -6%.
Yet the banks should be the beneficiaries, in the event the ECB were to present a maxi TLTRO at super negative rates, of at least 1.000 billion euros for a duration of at least two to three years. There is also talk of the possibility that in the face of the emergency, a plan to purchase senior bank bonds could be launched.
According to Moody's, however, Italian banks risk seeing increasing problems on the loan side and facing pressures on revenues and liquidity due to the coronavirus emergency which should lead the country into recession with a contraction of 0,5% this year against the previous estimate of +0,5%.
Fiat Chrysler -6,10% and Cnh Industrial 6% have suspended production in Italian plants.
Campari -7% was downgraded from Deutsche Bank to Hold.
Also declining Italgas -4%, the day after the presentation of the results, partially higher than expected, Barclays cuts the target price to 5,80 euros.
Salvatore Ferragamo -6%. Deutsche Bank cuts its target price to 17,8 euros.
Also in red Falck Renewables -5,9% despite the good 2019 data and forecasts for 2020. The past year closed with a 6,5% growth in Ebitda to 204 million euros.
