Some disappointing macroeconomic data, a series of worse-than-expected quarterly reports and Donald Trump's tweets about China and the Fed depressed European stock markets, which closed in the red, accentuating the losses after the negative opening on Wall Street.
Piazza Affari loses almost 2% (-1,99%) and drops to 21.278 points, with most of the blue chips down. Among the worst stocks is Fiat (-4,32%), which during the session was also stopped in volatility. Bad banks, even if the spread in the end remains below the ceiling of 200 points. The spread between 10-year BTPs and Bunds with the same maturity dates back to 197,7 basis points (+0,66%) and the yield on the Italian 1,58-year rstation to XNUMX%.
In any case, the morning's auctions went well on the primary market and the Treasury placed six billion BTPs at 5 and 10 years, with rates in reverse. The average ten-year yield fell to 1,56% from 2,09% in June, revising the lows since October 2016 and the five-year rate went to 0,8% from 1,34%. Ccteu maturing in January and April 2025 were also sold for €1,25 billion, at a rate of 1,06% (from 1,6%) and 1,11% respectively.
In the rest of Europe, the flight from equities affects Frankfurt, -2,12%, penalized by the accounts and forecasts of Bayer (-3,35%) and Lufthansa (-5,92%). Madrid sinks -2,54%, Paris goes down -1,61%. London limits the damage to 0,49% after yesterday's gains, with the pound still weakened by the real risk of a no-deal Brexit. The exchange rewards the single currency which moves around 0,917. The euro dollar is flat around 1,114.
In the meantime, Wall Street is proceeding weakly on the day of the start of the central bank meeting, which will end tomorrow and from which a cut in the cost of money by a quarter of a point is expected. Particular attention will be paid to Jerome Powell's words to understand if this step, which comes after a decade, is the first in a series of corrections aimed at supporting the economy.
Trump is once again expressing his disappointment with the Fed's monetary policy and is calling for a major rate cut, while the Wall Street Journal attacks the central institution which would appear "confused" and too intimidated by the White House. A certain nervousness on the markets is also due to a series of attacks by Trump on Beijing, while the US delegation is in Shanghai to resume talks on trade tariffs. Tensions weigh on technology stocks and sales prevail over Apple (-0,7%), pending the accounts that should be disclosed tonight, after the close of the American stock exchange.
Who today waited for their accounts, on the eve of publication, with great nervousness is Fiat, which in Piazza Affari left 4,32% in the field, together with Exor -3,25%. Bad financials: Finecobank -4,76%; Bper -3,91%; Unicredit -3,23%.
They stop in deep red Buzzi -4,06%; Telecom -3,47%; Leonardo -3,23%. On the main list, the only two positive titles are Amplifon +0,65% and Campari +0,028%. Hera -3,35%, Terna -1,67%, Italgas -1,77% forgiveness, despite the good half-yearly results.
Raw materials are in the green, with Brent gaining 0,66% and rising to 64,13 dollars a barrel and gold attempting to regain 1430 dollars an ounce (currently 1428,55 dollars).
