Donald Trump's tweet escalation knocks out the international stock exchanges and creates quite a few turbulences in Milan, where the Ftse Eb it closed down 1,63%. No one, from Shanghai to New York, as the hours and time zones go by, manages to save themselves from the Black Monday triggered by the US president who in the night between Sunday and Monday uses his favorite social network to threaten a 25% increase in tariffs on $200 billion of Chinese goods and the imposition of new tariffs on an additional $325 billion of goods from Beijing.
When everyone thought that the agreement between the two giants was now one step away, with the Chinese delegation ready to leave for Washington in order to sign the definitive agreement, the trade war once again frightened the markets. In the morning, Trump even increases the dose: “The United States has been losing, for many years, from 600 to 800 billion dollars a year in trade. With China we lose 500 billion dollars, sorry, but it won't happen again!” tweeted the tenant of the White House.
“The outburst/threat indicates in our view that the talks had reached a dead end. Attention now shifts to the visit of the Chinese delegation to Washington next Wednesday. Any cancellation/postponement of the visit would indicate actual problems and a lengthening of the time frame for a possible agreement, while its confirmation would go in the direction of a greater negotiating willingness of the Chinese”, reassured the analysts of Mps Capital Services.
Although many see behind Trump's tweets a "bluff" aimed more at accelerating than breaking up the negotiations, the markets react badly. The shock that started from the Asian markets (Shanghai -5,58%, Shenzhen -7,38%) infected the European stock exchanges right from the first trades, which in the afternoon tried to file the losses by a few decimal places. Piazza Affari is the worst among the European stock exchanges and drops to 21.409 points from 21.763 at Friday's closing. Overbearing discounts also on the other price lists: Frankfurt -1,01% Paris -1,18% Madrid -0,84%. You save London, but only because the Stock Exchange is closed for holidays.
A Wall Street the intonation does not change with technology and industrial stocks, the most exposed to Chinese demand, in a nosedive. The Dow Jones and the S&P 500 are down 0,7% and 0,8% respectively, while the Nasdaq is down 0,96%. To the stars the Cboe Volatility Index (Vix). The index that measures the "fear" of investors has jumped by 23,54% after reaching a maximum of +44%, the highest increase in the last year.
After suffering the Trump effect for several hours the Petroleum limited the damage with US WTI down 0,06% to 61,9 dollars a barrel and Brent up 0,03 to 70,87 dollars. “Trump's intransigence on tariffs against China, completely unexpected, has scared investors, who are trying to contain their level of risk in the market,” London Capital Group's Jasper Lawler told Reuters, adding: “ The idea that months of negotiations could be jeopardized by Trump has raised concerns about future demand for crude oil.
Slightly down foreuro on the dollar with the exchange rate reaching 1,1195, while the fear of tariffs has repercussions on the yuan, which reaches 6,7882 on the greenback.
International tensions also involve government bonds. The spread between Btp and bund, after exceeding 260 points, normalized again in the afternoon, closing at 256 basis points. Ten-year rates rise to 2,575%, while the 10-year Bund yield returns to 0,012%.
Moving back to the stock market in Piazza Affari, only utilities remain afloat: Terna + 0,41% Snam +0,04%. The other 38 Ftse Mib stocks are all in the red with technology, luxury and cars paying the highest price. Black jersey for stm, which collapses by 4,82%. Heavy the Agnelli galaxy: Cnh -3,7, Exor -3,51% fca -2,2% Ferrari, -1,17%. The performance of Italian automotive stocks follows that of the other big European companies: bmw -2,2% Volkswagen -1,66% Peugeot -2,12% Renault -2,32%. In Italy thump of Pirelli (-3,3%) And Brembo (-2,89%)
Bad luxury: Ferragamo -3,04% Moncler -2,2%. Down the big banks: Unicredit (-3,27%), Understanding (-1,4%).
