Yet another fire day for the European stock exchanges and for government bonds. Meanwhile, German media are claiming that Nord Stream "could be unusable forever" and the price of gas on the Amsterdam Stock Exchange soars 10%, back above $200 per megawatt hour.
However, the announcement of the Bank of England arrived in the late morning to partially refresh the spirit of the markets will intervene in the bond market of the United Kingdom, with the purchase of Gilt to "restore normal market conditions" after the financial crisis triggered on Friday by the maxi tax cut decided by the Truss government.
The closure of the European stock exchanges
This is the summary of a difficult day for the European Stock Exchanges which, however, in the final stages manage to recover ground thanks to the BoE and the good mood of Wall Street. At the end of the day, Business Square scores -0,5% to 20.852 points after hitting a low of 20.481,73. It is the worst performance of the old continent, with the other lists that manage to grab parity: Paris 0,2% salt, Madrid closes at -0,06%, Frankfurt is up 0,38. It also goes up 0,3%. London.
How is Wall Street doing
After a thwarted opening, Wall Street takes the road to the upside, reassured by the news from London. Yesterday, the Dow Jones and the S&P 500 recorded their sixth consecutive session of declines and new lows since 2020. The Dow Jones therefore confirmed itself in "bear" territory (-20% from its recent high), the S&P 500 canceled in these sittings over 2.000 billion dollars.
Mid-afternoon the Dow Jones and the S&P 500 they earn over 1% of their value, while the Nasdaq climbs 0,87% despite the heavy red (-3,2%) of Apple Lossless Audio CODEC (ALAC),. According to some press rumors, the Cupertino company will give up increasing the production of the new iPhones this year, given that the expected increase in demand has not occurred. Instead, it will produce roughly the same number of smartphones as last year, according to Bloomberg, in line with forecasts for the summer.
Tensions on the secondary: falling spreads, yields on the roller coaster
The tension on international government bonds continues, despite the BoE's intervention helping to cool rates. US 4-year bond yields exceeded 2008% for the first time since XNUMX, while in Italy the rate on the 10-year BTP is at 4,6224% after having reached 4,81% in the morning.
It falls below 250 basis points (reaching 242) lo spread between the BTP and the Bund.
Meanwhile, this morning the Treasury has assigned the entire amount offered by the auction BoT at 6 months maturing on 31 March 2023, equal to 5 billion euro, against a request of 7,1 billion, for a coverage ratio of 1,42. The yield soars, rising to 1,978%, which with an increase of 117 basis points, reaches the highest since July 2012.
Dollar stronger and stronger, the pound goes down again
Keep going down there GBP despite the Bank Of England's announcement that it will buy up to £5bn a day in UK government bonds with a remaining life of at least 20 years from today, while postponing its bond offering scheduled for next week.
The British currency went wild on the news, jumping as high as $1,084 and then falling as low as $1,0745. Continues the Rstrengthening of the dollar, which hit a new XNUMX-year high supported by the rise in Treasury yields. “Such US dollar strength has historically led to some kind of financial/economic crisis,” Morgan Stanley analyst Michael Wilson wrote in a note, according to CNBC reports.
Il exchange euro Dollar at 0,96281 (0,9598 on Tuesday's close).
The price of gas is back above $200
Gas is also in the spotlight, after the damage to the Nord Stream 1 and 2 gas pipelines. In Amsterdam the future October 2022 it rises by almost 10% to 203,5 euros per megawatt hour. According to the German Tagesspiegel, the security services in Germany believe that the three pipes of the Nord Stream 1 and 2 gas pipelines, probably damaged by an attack, could also be unusable forever. Government sources quoted by the newspaper say that, if they are not fixed immediately, the salt water could corrode the material from which the pipes are made.
Meanwhile, the rain of accusations continues among the forces in the field. Russia counterattacks next sabotage charges to the Nord Stream pipeline. “It is stupid and absurd” to blame Moscow for the gas leaks, says the Kremlin. “American President Joe Biden must clarify whether the US is behind the incidents that took place at Nord Stream ". said Russian Foreign Ministry spokeswoman Maria Zakharova, quoted by Tass. The EU calls for a thorough investigation. “The acts of sabotage at Nordstream appear to be an attempt to further destabilize the EU's energy supply. We need an urgent and thorough investigation. Those who perpetrated this act will be held fully responsible and obliged to pay. Our efforts to diversify our energy supply away from Russian gas continue,” European Council President Charles Michel wrote on Twitter.
The price of oil rose, with Brent at 88.26 dollars a barrel, up by 2,31%).
The best and worst titles at Piazza Affari
It is in Piazza Affari Leonardo (-5,4%) the worst title, followed by stm (-2,56%) weighed down by rumors about Apple. After the rally on the eve, profit-taking hits nexi (-2,87%), while the banking sector is negative: Bper (-1,6%), Intesa Sanpaolo (-1,67%), Unicredit (-1,63%). Down Bpm bank (-1%). According to rumors, the offers received for Non-Life bancassurance are not satisfactory and the institute could therefore decide to develop the business internally.
The oil companies are in full swing: Tenaris it is the pink jersey of the session with an increase of 2,93%. Saipem ed Eni respectively +0,4% and +0,3%. Well the utilities: Ivy (+ 2,5%), A2a (+ 1,22%).
Tonic the titles of the Agnelli galaxy: Iveco + 1,9% Cnh + 1,4%.
