Negative start to the week for the European stock markets which closed a very volatile session, conditioned in the afternoon by the heavy declines on Wall Street. Despite the firepower deployed by the Fed, ready for unlimited intervention in favor of the financial markets, American stocks are traveling in reverse on their first day of electronic trading only.
Business Square it lost 1,09% and fell back to 15.559 points, after fluctuating between a minimum of 15.02 and a maximum of 15.788 basis points. Red is brighter a Frankfurt -2,12%; Paris -3,32%; Madrid 3,33%; London -3,89%; Zurich -5,41%. While Covid 19 expands around the world, exceeding the threshold of 353 infections and the US breaks through the ceiling of 35, the economy shrinks and the recession is increasingly scary. Consumer confidence in the euro area fell by 5 points in March to -11,6 points. In the EU the drop is 4,5 points, -11 points. Due to the coronavirus, however, the data collected is not complete because only about 15% of consumer responses were recorded after the restrictive measures on mobility in the various states.
In this situation, central banks are playing a fundamental curative role, but governments must also play their part, therefore the difficulties encountered in approving the US federal government's aid plan weigh heavily after the Senate yesterday rejected the Republican proposal . Goldman Sachs forecasts a sharp contraction in global real GDP in 2020 on the back of a 24% decline in US real GDP in the second quarter. On the European front, economists interviewed by Bloomberg estimate a first quarter with GDP at -3%, followed by -2,4% in the second period of the year.
Meanwhile, the Federal Reserve has decided on a major expansion of QE, declaring that the purchases of Treasuries and mortgage-backed bonds, announced a week ago, are "basically unlimited", therefore it will buy government bonds "in the quantity necessary" , lifting the previously set $700 billion cap and will open up $300 billion worth of new business loan lines.
After the decision the price of the products goes up T Bond, while the 0,750-year yield falls, even falling below XNUMX%. The dollar weakens: theeuro moves slightly higher with the cross at 1,0735.
rears upgold at $1553,50 an ounce. On the contrary the Petroleum suffers from the blockade that the coronavirus imposes on travel and the consequent drop in demand. Brent is down 4,37% and trades at 25,80 dollars a barrel.
In Piazza Affari we are witnessing a finale with crazy increases and crazy decreases on the main price list. The shares of Bper +14,02%, in a banking sector in no particular order, in which Unicredit -4,15% is in black jersey.
nexi it jumped 11,48% after finishing below its initial price last week. It progresses Diasorin, +4,66%, which should benefit from the market launch of the new rapid kit for identifying coronavirus positivity. In fashion it still asserts itself Ferragamo + 3,92%.
A rain of sales invests Cnh, -14,95%, after the resignation of the CEO Hubertus Muhlhauser, who will be replaced pro tempore by Suzanne Heywood, chairman of the board. The stock has lost about 40% in the space of a month. According to Equita, consulted by the Sole 24 ore, the basis of the surprise farewell could be an overly ambitious five-year plan definitively compromised by the pandemic.
In the galaxy Agnelli retreat Ferrari -4,43%; Exor -5,21%; fca -4,25%.
Male Atlantia -5,51%: Buzzi -6,54%.
Uncertain sitting on the secondary: in the end it holds the bank lo spread which closes at 194 basis points, an improvement (-1,4%) compared to Friday; the Italian 1,56-year yield falls to XNUMX%.
