The European lists inaugurate the month of May with a decidedly negative session, which experienced a moment of panic around 10 in the morning, due to a "flash crash" which started from the squares of Northern Europe and then returned (at least in part) to short time. It is not clear what caused it, but as some traders observe, it is still a symptom of the general nervousness of recent weeks. In fact, we live in a climate of uncertainty fueled by the war in Ukraine, by the lockdowns in China (which are weighing on the economy, as demonstrated by the PMIs of the Celestial Empire in April), by the expectation of a more rapid monetary tightening by the banks central banks, starting with the Fed, which on Wednesday will probably announce a further rise in the cost of money by 50 basis points, after the 25-point increase decided at the last meeting.
Furthermore, eurozone economic sentiment fell more-than-expected in April (105,0 points from 106,7 in March) and confidence appears to be hit across sectors given the length of the war and soaring commodity prices . And then it slows down the manufacturing of the block.
Little comfort was provided in the afternoon by the mixed performance of Wall Street, after the sell-off suffered last Friday, with Amazon in a nosedive and even today with a loss of 1,96%.
Closing down in Europe, stops London
In this context Business Square it falls by 1,63% and slips again below the psychological threshold of 24 points (23.857); Paris records a loss of 1,66%; Frankfurt -1,11%; Madrid -1,69%. It's heavier than the budget Amsterdam: -2,33%. The dividend cut weighed on the STOXX 600 (which is down about 8,5% year-to-date) with automakers such as Mercedes-Benz, healthcare company Bayer, auto parts maker Continental and group chemical BASF become less attractive.
Outside the blockade area remained closed London for holidays.
Morning "crash" of the European price lists
The big cold probably arrived from the North and created some moments of panic on the market, with a storm of selling which then subsided. The flash crash, the crash of the stock exchanges, touched the Omx index of the Stockholm Stock Exchange, which managed to lose 8% in a few minutes before 10am to then close with a "quiet" -1,87%. The script was similar for Copenhagen -8,3% (-1,58% at the end) and Helsinki -7,9% (-1,48% at the end).
The collapse also manifested itself in Paris, Frankfurt and Milan, which came to sell 3,8%, with nine stocks in volatility on the Ftse Mib.
"We are looking at this episode as a routine matter, there has been no market news that can explain such a large move," Euronext Oslo spokeswoman Cathrine Segerlund said.
Piazza Affari, down with oil and industry
The main declines on the Ftse Mib today are for oil stocks and industry. At the bottom of the basket it is Tenaris -3,85%, followed by Prysmian -3,75% Recordati -3,3% Interpump -3,15%; stellantis -3,02%. Bad stm -2,53%, also due to rumors about Apple's strategies regarding the internal production of chips and modems.
On the opposite side it shines Mediobanca, +2,16%, which practically danced itself into the financial sector (Unicredit -2,75%). At the basis of the effervescence of the stock there would be rumors of a possible strengthening of Leonardo del Vecchio in the capital of Piazzetta Cuccia, which is also celebrating the victory of its list for the board of directors of Generali (-0,85%).
Among the few positive titles also stand out nexi +0,19% and Atlantia +0,22%. Well Italgas +0,16%, after the quarter ended with growing revenues and profits.
The race for government bond yields continues
The yields on government bonds in the Eurozone continue to run: the 0,96-year Bund rises to +2015%, the highest since XNUMX.
The interest rate on BTPs with the same duration rose to 2,84% (from 2,79% on Friday), for one spread to 188 basis points (+1,9%).
Investors are eyeing the Fed meeting, but also the Bank of England policy meeting on Thursday, which is likely to raise rates by 25 basis points. Looking ahead, the ECB is expected.
China oil syndrome
Concerns about Chinese economic growth weigh on the Petroleum, which trades downwards, while in Europe there is a move towards an embargo on Russian black gold within the year.
Brent is down 3,16% to 103,75 dollars a barrel; Wti -3,36%, $101,17.
Meanwhile in Italy the government has decided the extension until July 8th the cut in excise duties on fuel and methane gas, also discussing the new aid package for families and businesses.
Gold prices move in the red, put under pressure by the high yields of US government bonds.
Spot gold is trading down about 1% around $1857,7 an ounce.
On the other hand, T-Bond prices are falling and right now, the 2,961-year yield is up to 2,885% from 2,97% on Friday, after exceeding 10% about 2018 days ago, the highest since the end of the XNUMX.
Stay on the shields the dollar, though the euro recovers a few decimals and trades up 0,2% to 1,052.
