Abrupt trend reversal of stock exchanges and spreads after the words of the ECB governor Mario Draghi. The disappointment of the market was then aggravated by the data on US industrial orders which turned out to be lower than expected (down by 0,5%).
Piazza Affari, which moved in positive territory in the morning, collapsed by 4,64% to 13.282 points. Madrid is even worse down by 5,16%. Less ruinous but always in strong negative terrain are the falls of the other European Stock Exchanges: Frankfurt -2,20%, Paris -2,68%, London limits damage to -0,88%. Wall Street also opens negatively and at the end of Europe the Dow Jones was down by 1,01% and the Nadasq by 0,58%. The euro drops below 1,22 against the dollar to 1,2151 (-0,61%) and WTI oil dropped to 87,7 dollars a barrel (-1,36%). The Btp-bund spread runs, returning beyond the 500 threshold to 512 points.
Before the ECB, Spain placed more than 3 billion euros of government bonds with yields in line with the secondary, slightly up on the previous auction and sharply down on the July highs. The two-year bond was assigned at a yield of 4,774%, sharply down on the peaks reached on 24 July, when two-year bond yields stood at 7,5%
DRAGONS, BUY ONLY AFTER IMF SAFETY STATES ACTIVATED, FED HAS ROOM FOR FURTHER RELEASE
"The rises in interest rates on government bonds linked to fears of the euro's reversibility are unacceptable and must be addressed: the euro is here and it is irreversible," Draghi said after the board meeting that left rates unchanged at the 0,75%. The President declared that the Central Bank is ready to carry out "direct market operations" to restore financial stability in the Euro area but only if countries are first willing to ask the temporary bailout fund (EFSF) to buy their own sovereign bonds in the primary market. Furthermore, Draghi warned that the Governing Council "is considering other non-standard measures to repair the transmission mechanisms of monetary policy". At the moment, these are guidelines that the committees will study in the coming weeks and which were decided unanimously by the board, with one reservation. But the market did not perceive in the tone of the governor, who is facing the opposition of the Bundesbank, the same peremptory tone of last Friday and expected more immediate and definite decisions. Observations, also advanced at the press conference, which Draghi does not share: Today there was no step backwards compared to last week's intervention in London ", he said, reiterating that he had always made explicit reference to the ECB's mandate for possible future actions which is to maintain price stability over the medium term and respecting its independence in taking monetary policy decisions. Furthermore, he explained that the action of the ECB cannot be effective without the action of the governments, hence the decision to move only after the governments.
The fears of the markets is that a protracted European crisis may also have a contagion effect in the US, where last night the Fed diagnosed a slowing economy but preferred not to take the field with new stimuli for now. For observers, however, an intervention is likely. The IMF also observed that US economic growth remains moderate, with "downside risks to the outlook" linked to "internal and external uncertainties", indicating that monetary policy in the United States must remain accommodative for some time and that the Fed has room for further easing if the outlook deteriorates.
BUSINESS PLACE COLLAPSES WITH THE BANKS
MEDIOBANCA OVERWHELMED BY NAGEL AND FONSAI
From Madrid, after the meeting with the Spanish premier Rajoy and after the ECB press conference, Mario Monti observes that "the stabilization of the markets and the financing costs depend on the Eurozone's ability to manage the crisis effectively and the solution can come if each of us does our homework quickly and well and we all do our homework quickly and well together in our common home”. The premier, who says he does not know if Italy will activate the shield, asks that the EU soon reach an agreement on banking supervision and to speed up European initiatives for growth. Furthermore, he believes that Draghi's words suggest a direct intervention by the ECB.
In Piazza Affari the banks collapsed: Bper -9,80%, Bpm -9,69% Intesa -9,63%, Ubi bank -9,22%, Unicredit -7,34%. Mediobanca (-9,36%) she is also overwhelmed by the investigations into the Ligrestis' letter after the prosecutor Orsi heard the CEO of the Nagel tree group as a suspect. Then there is the ballast of the Fonsai increase (-7,35%) which ended with a strong unopted, as could be expected from the mood of the minority shareholders grappling with a highly dilutive increase.
The general collapse also hit insurance companies Generali -6,43% despite the good half-yearly data released in the morning before the opening of the market and the debut of the new CEO Mario Greco had given impetus to the stock. Same fate for Telecom Italia -6,69% which saw a return to profit of 1,24 billion compared to the red in the first half of 2011.
Sul Ftse Eb they just resist Salvatore Ferragamo +0,88% and Tenaris +0,19% on the wake of the accounts released in the morning, which archived a net profit of 460,2 million dollars, up 51% compared to the 304,7 million recorded in the same period in 2011.
