The Bear does not let go of the world stock exchanges, tightened by theescalation in the trade war between the US and China and its consequences. The European lists, after the Asian ones, file another session in deep red: Frankfurt -1,77%; Paris -2,19%; Madrid -1,32%; London -2,47%. Wall Street has been awash in sell-offs since the opening and all indices are currently down more than 2% (the Nasdaq even touches -3%). Tech, industrial, financial suffer.
Piazza Affari yields 1,3% and drops to 20.773 basis points, stopping below the psychological threshold of 21 points. The banks are trying to stem the damage and are among the best stocks on the list, but this is not enough to wipe out the pessimism of the day. Bper gains 1,53% after the accounts; Banco Bpm +1,05%;Intesa +0,78%. Finecobank slips by 2,31%, despite showing off the best quarter ever. Well Buzzi +0,37%.
The heaviest losses are for Moncler -5,1%, penalized by the worsening political situation in Hong Kong; Stm -4,3%, with the semiconductor sector particularly exposed to China; Amplifon -3,52%. The automotive sector is still weak: Cnh -4,2%; Pirelli -3,31%. Fiat sells 'only' 0,32%, in the hope that talks with Renault will reopen. Oil producers are bad, led by Saipem -3,32%. Oil is down: Brent -2,17%, 60,55 dollars a barrel; Wti -0,75%, 55,24 dollars a barrel.
On the other hand, the clash between the two superpowers increases the risk of a world recession and according to Morgan Stanley, if the tensions lead to tariffs, 9 months will be enough to get to that point. It is recalled that, last Thursday, President Donald Trump announced, effective September XNUMX, tariffs of 10% on 300 billion dollars, which will add to the 25% already in force on 250 billion of products made in China.
A new chapter in this story, which keeps everyone in suspense, has also been written by China, which has allowed its currency to fall below 7 yuan per dollar, minimum for 11 years. According to Trump it is currency manipulation: “Are you listening to the Federal Reserve?”. But Beijing denies it.
In this context the euro strengthens against the dollar (1,118) and the pound (0,9214). Gold gains further momentum and climbs to $1474,15 an ounce.
T-Bonds are rallying, continuing a run that last week was fueled by the Fed's rate cut and then the new announcement of tariffs by Trump. The 1,785-year sees yields fall to 1,864% from last Friday's 2,038%. Three-month US bond yields are down to XNUMX%. The reversal appears increasingly evident and is read as a sign of an approaching recession.
Among safe-haven assets, the Bund remains the great protagonist, with the 0,52-year yield at -XNUMX%. Inevitably the spread widens with the Italian 207-year bond, which rises to 2,29 basis points (+10%). The yield on the 1,55-year BTP rises to XNUMX, while tensions do not subside in the government majority.
The XNUMX-year Bund rate opened by a new all-time low to -0,065%, after the entire German curve slipped into negative territory for the first time in Friday's session.
