A Black Friday seals the financial week of Business Square and European lists, which close with heavy falls, while Wall Street, after a negative start, seems to be moving towards the same epilogue. The Dow Jones, in the US morning, touched the lows of almost two years. Goldman Sachs also cut its end-2022 target for the S&P 500 by about 16% to 3.600 points, down 2,5% from current levels.
The aggressiveness of central banks, fears of recession, the escalation in tones between Russia and the West, the Italian elections are at the basis of today's earthquake.
Milano, -3,36% (21.066 basis points) closed at its lowest level for about two months and was the worst result today, 23 September, just two days before the political elections and with the centre-right parties in fibrillation over the words of the president of the European Commission Ursula Von Der Leyen which seemed to interfere in the internal political campaign on which the president tried to correct the shot during the day.
They also continue to rise i government bond yields: the ten-year Btp from to 4,23% and the Bund reaches 2,03%, for a stable spread at 220 basis points (+0,47%).
In the rest of Europe they are strongly negative too Amsterdam -2,76% Madrid -2,46% Paris -2,28% Frankfurt -2,01%. Outside the Eurozone: London -2,01% Zurich -1,54%.
Euro new minimum for 20 years; free-falling oil
The single currency loses more than 1% against the dollar and trades at around 97 cents.
La GBP in the morning it reached a 37-year low against the US currency (1,102) and the 10-year yield on British government bonds reached their highest since 2011, exceeding 3,8%, intimidated by the Tuss government tax cut, intending to stimulate the economy. The fear is that the plan will be financed by new paper issuance, with fears about the consequent keeping of the British accounts.
The macro picture as a whole (September PMIs in the Eurozone are at their lowest for 27 months) and the inversion of the US bond curve (two-year bonds still trade over 4% against 3,7% for the XNUMX-year ) weigh on the Petroleum, which sees the demand for crude oil at risk. Brent futures are down 5,1% to 85,84 dollars a barrel. The WTI trades below $80 for the first time since January.
Eurozone PMI Lower; European banks worried by the ECB and Credit Suisse
The eurozone's PMI indexes for September, which are already very fragile in a context of "hawkish" central banks, have depressed risk appetite, confirming a slowdown in the economy and increasing the likelihood of a recession. The PMI Composite S&P Global Flash Eurozone it dropped to 48,2 in September from 48,9 in August (above 50 means growth), indicating the third consecutive month of contraction in private sector activity. Excluding pandemic shocks, the reading was the lowest since May 2013. France and Germany fared poorly.
The banks, which have supported the lists in this octave of monetary tightening, are today in the deep red dragged by Credit Suisse (-12,4%) to historic lows. The Swiss bank is seeking new liquidity from investors for the fourth time in about seven years, according to two Reuters sources, as it attempts a major overhaul of its investment banking unit.
Always Reuters also reports the news that the ECB is evaluating how to contain the costs due to the interest to be paid to the banks that park excess liquidity at the central bank. Among the options being studied, there would also be a possible adjustment of TLTRO's long-term financing operations.
Piazza Affari in black mesh with oil, industry and banks
On the main index of Piazza Affari today there is an embarrassment of choice of negative sectors. In any case, the list of declines is led by an oil stock like Tenaris, which loses 8,31%. Among oil shares, today's balance sheet is also heavy for Eni, -4,74%. The sell-off has hit industrial stocks: there's no defense holding out Leonardo -6%. Bad Iveco -4,9% and Pirelli -4,33%, also because the automotive sector was sold throughout Europe with registrations falling by 17,4% and 8% in July and August respectively, marking fourteen consecutive months of decline.
Banks retreat after recent gains from Understanding, -4,75%. Bpm bank it loses 4,42%, also in the light of the opinions of CEO Giuseppe Castagna, according to which the institute is on a stand-alone path after having sought partners for the creation of a third banking center in Italy. They go down Mediobanca -4,2% and nexi -4,18%.
It's against the trend Ps +3,18%, recently oversold.
Closes a lead session as well Telecom, -4,41%, which had resisted the sales in the morning.
The only positive blue chip is Amplifon + 1,01%.
