Down on Wall Street on the eve of the start of the "reporting season", which began yesterday evening with the accounts of Alcoa, the top US producer of aluminum. But the first real test will be on Friday with the quarterly Wells Fargo. The data from the other banks will arrive next week, from JP Morgan a Citigroup e Bank of America.
Consistent declines for European Stock Exchanges: Paris fell by 1,4%, Frankfurt -1,3%, London -1,2%, Madrid -1,8%. For the lists of the Old Continent it is the third consecutive day of decline.
The banks are sinking: the Eurostoxx Banks index is down 2,8%. The basket that brings together the main banks in the euro area (30 members, 9 of which are Italian), has "taken back" almost all of the gain from the beginning of the year (now reduced to 1%) which had reached a peak last April of +15 %.
In addition to the collapse of the banks, the slowdown in economic activity also weighs: after the drop in German industrial production (-1,8% in May) yesterday it was the turn of Great Britain -0,8% in May. The data of is also disappointing Philips need Airbus, on which the strong euro weighs.
Black day for the Milan Stock Exchange which closed with the FtseMib index down by 2,69% to 20.700 points, returning below the close of Friday 23 May (20.745 points) and thus eliminating the gains made after the victory of the Democratic Party in the elections European elections of 25 May.
SPREAD
The banking crisis has provoked a new race for assets considered "safe" such as the German bund, which is flying to a new all-time high. The Italy-Germany spread widens by 9 basis points to 163 after reaching a low of 132 basis points in mid-June.
The yield on the 10-year BTP rises to 2,85%, after having recorded an all-time low of 2,70%, also last June. Tomorrow the Treasury will offer 6,5 billion 12-month BOTs at auction (against 7 billion maturing).
EUROPEAN BANKS
Rain of sales on Italian banks, without exception. Ps -6,54% , Ubi –5,43% e bpm -6,86% have been suspended several times due to excessive reduction. Caporetto continues with Bper - 4,15%, Banco Popolare - 4,87% Mediobanca loses 3,56%, midway between Unicredit -3,28% and Understanding -4,12%.
What is the reason for the credit crash? The record offers several reasons:
a) The risk of US sanctions against European banks that have violated the embargo rules decided by Washington on "rogue" countries: after having struck bnp Paribas with a maxi fine of just under 9 billion dollars, the American judiciary has targeted Commerzbank e Unicredit.
b) The wind of the crisis blows from Hungary and Bulgaria and invests the Austrian banks: Erste group -3,5% (-23% in three sessions) e Raiffeisen Bank -5,5%.
c) To complete the picture of Black Tuesday, the holding company crashed in Luxembourg Espirito Santo Financial -5,8%, safe of the homonymous Portuguese family that controls the Banco espirito santo -6,4% of Lisbon.
On such a troubled day, the 3,1% drop of Generali: yesterday morning CDP completed the sale of 1,9% of the capital at 15,70 euros to institutional investors. UnipolSai loses 3,5%.
YOU SAVE BUZZI, THEY KEEP THE UTILITIES
Red abounds among the blue chips: they go down Finmeccanica -3,9% Fiat -1,4%e StM -2,9%. Sharp decline of Cnh Industrial -3,9%. They also retreat Eni -1,9% and Saipem -4,3%. Down too Telecom Italy -2% and Mediaset -4,2%, despite the Buy of Deutsche Bank.
Among the best titles Buzzi -0,6%, promoted to Buy by Kepler Cheuvreux. In profit until mid-session, utilities finish lower: Enel -2,2% Enel Green Power -0,9% triad –0,2%, Snam -0,4%. Erg gained 3,38% to 11,93 euros. Moncler it closed at €11,74, down a fractional 0,09% but close to a year-low of €11,73 on Monday after Mittel cleared its holding.
