Business Square e Madrid raise their heads, but the climate remains cold in the rest of Europe and on Wall Street, with the US sanctions on Russian oil which unleash a further flare up in the prices of black gold. The EU's dependence on Russian gas does not allow for the same move for now (sanctions on oil would trigger retaliation from Moscow on gas), but the European Commission nonetheless draws up a plan to reduce gas imports by two thirds within the year from Moscow and the prices of the latter are slightly declining.
In this context, Milan closed with an increase of 0,8% to 22.338 basis points, thanks to the run of oil stocks and the rebound of banks, a sector which also supports the main Spanish index, +1,23%. Instead, they aggravate the balance of losses since the beginning of the war: Amsterdam -1,84%; Paris -0,32%; Frankfurt -0,1%. It's flat London. Madrid stands out +1,74%.
It is then a red alert on Wall Street, cautious at the start, but now in sharp decline. The New York Stock Exchange experienced its worst session since October 2020 yesterday with the S&P 500. In addition, the Dow Jones entered a correction for the first time since 2020 (-10% from a recent peak) and the Nasdaq Composite is finished in the 'bear' market (down 20% from the November highs).
Stagflation risk if inflation does not slow down
Across the Atlantic, the risk of stagflation is taking shape, as higher energy prices fuel massive inflation in an economy that isn't growing quite as boldly. A picture that puts central banks in check, forced on the one hand to limit uncontrolled price growth and on the other to support the economy. The ECB will also be called upon to this arduous task in a few days, with the meeting of 10 March.
Sanctions inflame oil. Record gold: bullion boom
Le American sanctions, announced by Joe Biden at the close of the European markets, further galvanize oil. Brent and Wti futures reach levels that were unthinkable until recently. North Sea oil trades up 7,6% to $132,6 a barrel; Texan crude is in the $130 area, with an increase of more than 8%.
To control prices, Germany invites the Organization of the Petroleum Exporting Countries to increase its crude production.
But the Russian deputy prime minister, Alexander Novak, warns that the sanctions on energy products will lead to retaliation and oil could reach 300 dollars a barrel.
Meanwhile, the European Commission says it wants to reduce gas imports from Russia by two thirds within the year and announces that, by April, it will present a legislative proposal so that underground gas storages throughout the EU are filled up to at least 90% capacity by October 1 of each year. This is one of the measures contained in the 'REPowerEu' plan developed to tackle high prices and reduce energy dependence on Moscow. The proposal would involve the monitoring and enforcement of filling levels and would build a solidarity agreement between Member States.
Il oil flies and other raw materials run. Gold gains about 3% and moves well above $2000, around $2055 an ounce. Palladium, Platinum, Silver, Nickel are pushing the accelerator.
Exchanges in swing: no Eurobonds, but the spread falls
Niet Eurobond: the rumors about an EU plan for the issue of Eurobonds intended to finance defense and energy expenditure of the countries of the Eurozone have been denied by the Commission. The news had supported the bond rally in the morning and was one of the reasons for the stock market rebound, together with Ukraine's openness to Russian proposals on Crimea and Donbass, which however ruled out the recognition of the two self-proclaimed republics of Donetsk and Luhansk and the annexation of the Black Sea peninsula to Russia. The Ukrainian president stressed that he is "ready for dialogue" but "not for capitulation".
“If we talk about temporarily occupied territories and republics not recognized by anyone,” Zelensky said, “we can discuss and find a compromise.” "It's important for me to know how people who want to be part of Ukraine will live in those territories," he said, citing "security guarantees." "It is a more complicated matter of just recognizing, this is another ultimatum and we are not ready for an ultimatum", said the Ukrainian leader, "the important thing is that Putin starts talking".
In the afternoon, however, the vice president of the EU Commission said that the project, notoriously disliked by the countries of northern Europe, is not being studied. “In the Commission – he clarified Frans Timmersman – we don't have any plans in this regard, I don't know the Member States.'
However, the Italian secondary closed in green, in a context of rising yields. The spread between 10-year BTPs and Bunds of the same duration fell to 149 basis points (-6,8%), with the rate of the Italian bond growing less than the German one: +1,6% against +0,11% .
Piazza Affari towed by Oil and banks
Fly on the main Milan price list Saipem, +13,15% which is the best blue chip of the day, driven by oil price increases. They remain on the shields too Tenaris +3,22% ed Eni + 1,97%.
Banks bounce, starting with Unicredit, +6,12%, which is the one that has suffered the most since Russia's attack on Ukraine began. They raise their heads too Bpm bank +5,09% and Bper +5,38%. More cautious Mediobanca +2,22% and Understanding + 1,22%.
Archive a tonic session the insurance sector: Unipol + 6,81%.
Pride shot by Telecom, +5,85%, with the market returning to purchase shares of the telephone company after press reports that bring into play the hypothesis of a takeover bid by Kkr.
They mark important progress Post +4,64%; Iveco +4,24%; Enel +2,9%. The most important discounts are of Amplifon -4,72%; Interpump -4,14% Diasorin -3,88%.
Outside the main basket Rai Way appreciates by 5,86% after the news on possible descent of Rai in the company of the towers it has rekindled expectations of its merger with Ei Towers.
