Volatility and uncertainty continue to dominate the markets closing another session of strong sell-offs, caught between the shock result of Brexit and the outcome of the weekend's Spanish elections, where Rajoy won but without a majority. Wall Street has not helped to lighten sentiment on European markets: overseas indices opened heavy and at the close of Europe travel in deep red, with sales pouring into financials.
Banks are also hit hard throughout Europe and in Piazza Affari they sink the Fste Mib index, sinking by 3,94% to 15.103 points, the worst among the main European indices. Paris -2,97%, Frankfurt -3,02% and London -2,55%. The pound plunges to its lowest since 1985. The euro-dollar exchange rate was 1,0979, down by 0,58%.
Gold climbed 0,6% to settle at $1.323 an ounce and re-approach last Friday's high of $1.358. On the Brexit push, some experts see gold rising towards 1.400 dollars an ounce.
On the macroeconomic front in the USA, the Fed Dallas manufacturing index rose to -18,3 points in June, remaining however in negative territory. Activity in the US services sector also rose: the flash PMI services index, compiled by Markit, came in at 51,3 points, up from 51,2 points in the previous flash estimate.
All eyes are on the European directorate in view of tomorrow's summit of the 27 EU countries in Brussels. British Prime Minister David Cameron announced in Parliament that tomorrow it will not ask for the activation of Article 50 of the Lisbon Treaty to open the procedure that will allow the United Kingdom to leave the EU. Cameron will probably leave the task of initiating the procedure to his successor who will be appointed by September 2nd.
In Piazza Affari there is a flurry of suspensions. At the bottom of the Ftse Mib are the banks: Mps -13,34%, Mediobanca -12,77%, Intesa -10,92%, Unipol -10,22%.
Ubi -6,35%, limits the decline among the large banks, on the day of the presentation of the business plan which estimates 730 million in net profit in 2019 and over 870 million in 2020.
Sales also hit Yoox -9,59%: the company is one of the most exposed across the Channel and investors fear the repercussions of Brexit and the devaluation of the pound. The company generates around 16% of its turnover in the UK. Azimut is also in free fall, losing 11,84%.
FCA leaves another 6,22% on the ground also due to Goldman Sachs forecasts for the next three years. According to American analysts, a lower increase in European GDP should correspond to a less favorable scenario for car sales volumes both in the United Kingdom and in Western Europe over the next three years: therefore, if Goldman for 2016 substantially maintains its vision of a +4,4% in volumes in Europe, now a clear reduction is expected for the next two years with a +0,2% in 2017 (from +1,5% in the previous estimate) and with a -0,4% in 2018 (from +0,5%).
Against the trend on the Ftse Mib Recordati +0,94%, Italcementi +0,10%, Terna +0,09% and Campari +0,06%.
