BAGS IN DEEP RED, SPREAD OVER 450 BP
SCARE THE ALARM FOR THE DRAGON ECONOMY
A disaster. After the moves, albeit obvious and without a doubt non-negative by the ECB, the Bank of England and the Central Bank of China, sales rained on the Milan and Madrid Stock Exchanges, with the FtseMib index of Piazza Affari down by 2,03%. The Ibex index of the Spanish market drops by 2,99%. Mario Draghi's alarm on the "risks for the economy" terrified the financial world.
The decreases in Paris (-1,17%) and Frankfurt (-0,45%) are more contained, while Lnbdra marks a +0,14%.
Even more dramatic decline in the government bonds: the yield of the ten-year BTP it jumped to 5,96%, from 5,74% last night. The spread with the Bund it suddenly widened by 26 basis points to 455.
The markets, acknowledging the fact that the recession is just as dramatic as could be expected, have decided that the heaviest price will be paid by earthenware pots, i.e. Rome and Madrid. Therefore, the outcome of next Monday's Eurogroup summit is expected without great hopes, while fears about Greece return after the government has declared that the reorganization of public finances in Greece is not proceeding as planned.
L'EUR it fell against the dollar to 1,237, from 1,252 this morning.
Thus the banks collapsed: Unicredit drops by 5,13%, Intesa drops by 4,4%, MontePaschi -4,4%, Banco Popolare -3,22%. In Madrid Santander drops by 3,94%, BBVA -4,81%.
Returning to Business SquareEnel -3,22%, Atlantia -2,2%, Enel Green Power -4,13% are among the blue chips with the greatest decline. The declines also among industrial stocks were less dramatic: Fiat -1,25%, Pirelli -1,16%.
The negative picture is completed by the American figure ofIsm service sector index, which fell to 52,1 in June from 53,7 the previous month. The drop is worse than the expectations of economists who on average expected the index to reach 52,1. On Wall Street, the Dow Jones fell by 0,55%, S&P -0,72%, Nasdaq -0,44%.
